Taiwan’s Ministry of Finance has extended and broadened the 1% business tax incentive for companies using mobile payments or KIOSKs, allowing continued exemptions from uniform invoices until the end of 2028.
Taiwan’s Northern District National Taxation Bureau has announced on 5 January 2025 that the 1% business tax incentive for small-scale businesses using mobile payments or multimedia information service machines (KIOSKs) will be extended until 31 December 2028.
The Ministry of Finance amended the former “Operational Guidelines for Tax Incentives for Small-Scale Businesses Introducing Mobile Payments” and renamed them “Operational Guidelines for Tax Incentives for Businesses Using Mobile Payments and Multimedia Information Service Machines.” The revised Guidelines take effect on 1 January 2026.
The changes aim to encourage mobile payment adoption and support the Ministry of Health and Welfare’s “cashless meal preparation” initiative.
Approved businesses subject to assessed taxation can continue to benefit from the 1% business tax rate and exemption from issuing uniform invoices even if monthly sales exceed TWD 200,000. The updated rules also expand eligibility to businesses with special operating characteristics, including soy milk shops, juice bars, dessert shops, self-service restaurants, noodle shops, pork chop rice shops, and lunchbox vendors.
For example, a self-service restaurant operator, Mr. Lin, introduced a KIOSK in January 2026. By June, monthly sales had increased to TWD 300,000. Even though this exceeds the TWD 200,000 threshold, the business remains eligible for the 1% tax rate and invoice exemption until the end of 2028. After 1 January 2029, businesses such as Mr. Lin’s will no longer be classified as “special businesses,” and uniform invoices will be required if sales exceed TWD 200,000.
The Bureau also reminded businesses that tax incentives will end in the following cases, effective from the next quarter:
- Actual quarterly sales reach TWD 2.4 million, with no possibility of reapplication.
- The quarterly mobile payment ratio is zero.
- The cumulative mobile payment ratio fails to meet specified targets.
Eligible businesses can apply for incentives through mobile payment providers or KIOSK manufacturers, distributors, or agents. Detailed guidance and cumulative mobile payment ratio targets are available on the Bureau’s website under “Tax Incentives for Businesses Using Mobile Payments and Multimedia Information Service Machines.” Assistance is available via the toll-free hotline 0800-000321.
