Taiwan’s Southern Area National Taxation Bureau had reminded businesses that claimed travel expenses must be supported by documents demonstrating their connection to business operations. The bureau had disallowed approximately TWD 800,000 in travel expenses claimed by a company after it failed to substantiate a Europe business trip.
Taiwan’s Southern Area National Taxation Bureau had reminded businesses on 16 September 2026, that travel expenses claimed for tax purposes must be supported by evidence showing that the trips were related to business operations.
Under Article 38 of the Income Tax Act and Article 62 of the Guidelines for the Examination of Corporate Income Tax Returns, expenses unrelated to a company’s principal or ancillary business activities cannot be recognised as deductible expenses or losses. Paragraph 1 of Article 74 further requires businesses to provide business trip reports detailing daily destinations, parties contacted and the nature of business activities, along with relevant supporting documents.
The bureau said transportation and accommodation receipts alone may not be sufficient. Businesses should also retain evidence such as invitation letters, email correspondence, meeting notices and exhibition photographs to establish the business purpose of trips.
In a recent examination of a company’s 2023 corporate income tax return, the bureau found that approximately TWD 800,000 in travel expenses had been claimed for a Europe trip by the company’s responsible person and shareholders. Although air ticket stubs and hotel receipts had been provided, the business trip report only stated “market research”.
The company was unable to provide details of the parties visited, business negotiation records, correspondence with potential local customers or relevant contracts. As it could not demonstrate that the trip was connected to its business operations, the bureau disallowed the claimed travel expenses and assessed additional tax.
The bureau advised businesses to strengthen internal controls by requiring employees to record their daily business activities during trips and retain business discussion records, emails and other supporting documents together with accounting vouchers.
