The Ministry of Finance has amended its operational guidelines to expand tax incentives for small, assessed businesses adopting mobile payments and KIOSKs, offering a reduced 1% business tax rate and invoice exemptions to support digital transformation and cashless policies.
Taiwan’s Ministry of Finance has amended and reissued its “Operational Guidelines for Tax Incentives Applicable to Assessed Taxpayers Using Mobile Payments and Multimedia Information Service Machines (KIOSKs)” as part of ongoing efforts to promote digital payments and reduce the tax burden on small businesses.
The changes, issued on 12 December 2025, aim to encourage businesses subject to assessed taxation to adopt mobile payment tools, improve transaction convenience, and align with the Ministry of Health and Welfare’s “no cash at meal service” policy.
According to the Southern District National Taxation Bureau, businesses operating physical stores under the assessed taxation system may apply for the incentives if they use mobile payments or multimedia information service machines (KIOSKs) equipped with mobile payment checkout functions, and their quarterly sales do not exceed TWD 2.4 million.
To qualify, businesses must submit an application form through a cooperating mobile payment provider or KIOSK manufacturer — including distributors or agents — to their local tax bureau. Once approved, eligible businesses may benefit from a reduced 1% business tax rate and exemption from issuing uniform invoices from the quarter of approval until 31 December 2028.
The Bureau noted that the incentives are designed to ease the transition to digitalised checkout systems while lowering the effective tax burden. However, eligibility will be revoked if the business’s mobile payment ratio — calculated as mobile payment sales as a percentage of assessed sales — fails to meet the required threshold, or if actual quarterly sales reach TWD 2.4 million.
Eligible assessed taxpayers are urged to submit applications by 30 June 2028 and to monitor compliance with the mobile payment ratio and sales thresholds. Further information is available from local tax bureaus or via the Ministry of Finance’s Tax Portal under the section dedicated to tax incentives for assessed taxpayers using mobile payments and KIOSKs.
The notice was issued on 26 February 2026 by the Southern District National Taxation Bureau.
