On 9 November 2021, Taiwan’s National Tax Bureau of the Southern Area has indicated that affiliates of multinational enterprises in Taiwan, which meet the threshold to submit Master File or Country-by-Country (CbC) Report, shall not only disclose the aforesaid information in their 2020 Profit-seeking Enterprise Annual Income Tax Returns, but also have to submit 2020 Master File or CbCR to the local tax authorities within one year after the end of the fiscal year. The filing of the 2020 income tax return was due at the end of June this year (2021).
The Bureau also explained that in order to submit Master File or CbC report in time, there are several ways for the enterprises to choose from, including paper filing, CD-ROM filing, and internet filing. However, internet filing and CD-ROM filing are highly recommended. The procedures are as follows:
Internet filing
The e-filing submission system for Master File and CbC report has been available for internet filing since 1 May 2020. Enterprises can access the e-Filing and Tax Payment Service of the Ministry of Finance (website: https://tax.nat.gov.tw, path: front page/ organizations/ Country-by-Country Report Submission System) to submit Master File or CbCR.
CD-ROM filing
Enterprises are required to prepare the CD-ROM documents, the checklist downloaded from the submission system for CbCR, and the delivery list of the CD-ROM documents (if submitting Master File only, please just enclose the CD-ROM documents), along with the cover of Master File or CbCR, subsequently submitting aforesaid materials to the local tax authorities. The cover of Master File or CbCR can be downloaded from the eTax Portal of the Ministry of Finance (website: https://www.etax.nat.gov.tw).
The Bureau would like to remind enterprises to make good use of the e-filing submission system which is available all year round since it is more convenient and time-saving to submit Master File or CbCR via the internet.