On 9 May 2022, the Ministry of Finance of Taiwan has announced that net profit rate is reduced for companies affected by the COVID-19 pandemic. The rate is reduced by 20% for companies which net operating income was reduced of at least 30% in 2021 compared to 2020 or 2019.
The Ministry of Finance exemplified that the reported net operating income of a Company in 2019, 2020, and 2021 was TWD 10 million, 8 million, and 6 million respectively, and the net operating income in 2021 decreased by 40% and 25% respectively compared with that in 2019 and 2020.
Because the net revenue in 2021 has decreased by 30%, and the net profit rate of the Company expansion book review originally applicable to its business industry is 6%, then the annual income can be calculated based on the net profit rate of 4.8% (6%×80%) when filing the 2021 profit-seeking enterprise income tax settlement declaration.
