Taiwan’s Ministry of Finance has issued a notice regarding the option of instalment payments for overdue tax cases that have been referred for enforcement on 20 November 2024.

The National Taxation Bureau of Taipei, Ministry of Finance, stated that, when a case is transferred for enforcement due to a taxpayer owing taxes, the taxpayer may apply for instalment payments to the local branch of the administrative enforcement agency if they are having difficulty paying the full amount due.

The Bureau explained that, for overdue tax cases transferred for enforcement, taxpayers who are unable to pay the full amount due to their economic situation or significant asset losses from a natural disaster or accident may apply for instalment payments at the local branch of the administrative enforcement agency in accordance with Article 27 of the Enforcement Rules of the Administrative Execution Act. The local branch may approve or deny the application after receiving consent from the agency to which the case is transferred and conducting a thorough review of the application details. If the application is approved but the taxpayer fails to make the payment by the deadline, the local branch may revoke the approval and initiate enforcement measures.

The Bureau provides the following example: After Company A failed to pay the 2022 profit-seeking enterprise income tax of TWD 5,000,000, the case was transferred to the local branch of the administrative enforcement agency. The person in charge at Company A, Party A, informed the branch that the company’s revenue had been significantly impacted by recent competitive pressures, making it difficult to pay the tax in full. Party A explained that, if the branch auctioned the company’s machinery and equipment, it would severely disrupt operations. Party A therefore requested the option to pay the tax in instalments. With the branch’s assistance, Party A submitted the necessary documentation and applied for instalment payments. The application was approved, and Party A successfully paid all taxes in instalments.

The Bureau would like to remind taxpayers that, for overdue tax cases transferred for enforcement, those qualified for instalment payments must pay their taxes by the specified deadlines once their applications for instalment payments have been approved. If they fail to make payments by the deadline, the local branch of the administrative enforcement agency will revoke the approval and immediately initiate enforcement measures, which will affect the taxpayers’ rights and interests.