Taiwan’s Central District National Taxation Bureau has outlined procedures for profit-seeking enterprises seeking extra time to submit Controlled Foreign Corporation (CFC) supporting documents, warning that delayed submissions could affect the treatment of valuation gains and the carryforward of CFC losses.
Taiwan’s Central District National Taxation Bureau of the Ministry of Finance clarified that profit-seeking enterprises required to report income from Controlled Foreign Corporations (CFCs) must disclose relevant information and attach supporting documents in the prescribed format when filing their income tax returns.
If a profit-seeking enterprise cannot submit the CFC financial statements audited and certified by a CPA, or other substitute documents, within the statutory deadline, it must state the reasons and apply to the tax authority for an extension before the end of the income tax filing period. The extension may not exceed six months and may be granted only once.
For example, when filing corporate income tax for fiscal year 2025 (calendar year basis), enterprises must apply for an extension by 1 June 2026. Once approved, the deadline to provide the documents will be extended to 1 December 2026.
To simplify procedures, enterprises may check the box in Column A9 of Part I (CFC Basic Information) on page B7 of the corporate income tax return annex, indicating “Apply for deferred submission of documents together with this return.” This eliminates the need for a separate application. Approved extension cases will be publicly announced, which serves as official notification in place of a formal approval letter, effective from the date of announcement.
The Bureau reminds enterprises that only if documents are submitted within the prescribed period may they elect to defer recognition of valuation gains or losses on CFC holdings measured at fair value through profit or loss (FVPL) until realisation, at which point such gains or losses are included in the CFC’s annual earnings. In addition, only CFC losses confirmed by the tax authority may be carried forward and deducted from CFC earnings for up to ten years, starting from the year following the loss.
Enterprises that cannot attach documents before the filing deadline must check Column A9 on page B7 of the return to apply for deferred submission, in order to protect their rights.
This announcement was made on 21 May 2026.
