Companies that applied for more time to provide audited financial statements of controlled foreign companies, or substitute documents, must file them by 1 December 2026, the National Taxation Bureau of the Central Area has said.
Taiwan’s National Taxation Bureau of the Central Area, under the Ministry of Finance, has reminded profit-seeking enterprises that have been granted an extension to submit financial statements of their controlled foreign company (CFC), audited and attested to by a Certified Public Accountant (CPA), or other supporting documents that may substitute for them, that the documents must be provided by 1 December 2026.
The Bureau said an enterprise unable to provide the documents by the deadline for filing its annual income tax return may apply for an extension under Article 10 of the Regulations Governing Application of Recognizing Income from Controlled Foreign Company for Profit-Seeking Enterprise. The maximum extension is six months and can be granted only once.
Consequences of missing the deadline
The Bureau particularly reminded enterprises that the losses of a CFC assessed by the tax authority may be sequentially deducted from the CFC’s current-year earnings for up to 10 years only if the required documents are submitted within the prescribed deadline. The deduction starts from the year following the year in which the losses occurred.
Enterprises that provide the documents on time may also choose to defer the valuation gains or losses arising from financial instruments measured at fair value through profit or loss (FVPL) held by a CFC. Such gains or losses would then be added to the CFC’s current-year earnings upon realisation.
The Bureau urged profit-seeking enterprises to keep track of any applicable deadline and provide the required documents on time to safeguard their rights and interests.
This announcement was made on 7 October 2026.
