On 7 May 2024, the Ministry of Finance in Taiwan released a notification regarding instalment alternatives for settling significant supplementary taxes.

The notification states:

The National Taxation Bureau of the Northern Area (NTBNA), MOF stated that according to Article 26-1 of the Tax Collection Act, in the event that a taxpayer faces difficulties in paying substantial supplementary taxes, an application may be filed for instalment payments with added interest for a maximum period of 3 years.

The Bureau explained that the said substantial tax refers to the amount of taxes that need to be paid after reassessment, which is TWD 1 million or more for individuals and TWD 2 million or more for profit-seeking entities （including organisations and institutions）.

If taxpayers have difficulty paying the taxes within the payment deadline, they can apply for instalment payment with added interest. However, the taxation bureau can require taxpayers to provide adequate collateral.

The scope, value, and other relevant matters of collateral shall be handled in accordance with “Regulations on the Valuation and Recognition of Collateral Accepted by Tax Collection Authorities”.

Interest for instalment payments is calculated daily from the day following the original tax payment deadline until the payment date, based on a daily basis at the interest rate quoted by the postal savings for a one-year fixed deposit starting from January 1 of each year.

The number of instalments depends on the amount of the tax liability, ranging from 2 to 24 instalments for liabilities between TWD 1 million and less than TWD 5 million, and 2 to 36 instalments for liabilities exceeding TWD 5 million.

The Bureau illustrates this with an example. Company A is confirmed a supplementary tax of TWD 2.4 million in business tax for the year 2022, with a payment period from October 11 to October 20 of the year 2023.