On 19 June 2020, National Taxation Bureau of the Southern Area (NTBSA), Ministry of Finance of Taiwan has stated that profit-seeking enterprises which suspended business in the taxable year 2019 should file its annual income tax return to the tax collection authority-in-charge from 1 May 2020 to 30 June 2020 due to the impact of COVID-19 pandemic. The deadline for income tax filing has already been extended to 30 June 2020.

In accordance with Article 79 and Article 108 of Income Tax Act, NTBSA expressed that where a profit-seeking enterprise fails to file an annual income tax return within the prescribed period but has subsequently filed it within 15 days from the date of receipt of the delinquent notice, it will be levied a delinquent reporting surcharge in an amount equal to ten percent of the tax payable investigated and determined by the collection authority (the amount of delinquent reporting surcharge shall be at least NTD 1,500 but not more than  NTD 30,00).

For further failing to file an annual income tax return within the time limit as mentioned above, and the amount of taxable income and the amount of tax payable have been determined by the collection authority based on the available data or the profit standard of the same trade, the collection authority will levy a delinquent reporting surcharge in an amount equal to 20%t of the tax determined as payable (the amount of delinquent reporting surcharge shall be at least NTD 4,500 but not more than NTD 90,000).

NTBSA would like to issue a reminder that, in order to avoid being levied a delinquent reporting surcharge, profit-seeking enterprises suspending business in a taxable year should remember to file an annual income tax return.