Taiwan’s Ministry of Finance announced a revision to the Business Tax Thresholds for Small-Scale Enterprises, effective from 1 January 2025. Small businesses that remain below these thresholds are exempt from tax.
The monthly limit for goods has been raised from TWD 80,000 to TWD 100,000, while the monthly limit for services has been increased from TWD 40,000 to TWD 50,000.
This announcement was made by Taiwan’s Ministry of Finance on 12 December 2024.
The Ministry explained that the thresholds are authorised under Article 26 of the Value-Added and Non-Value-Added Business Tax Act. The purpose of the revision is to simplify tax collection while ensuring a reasonable tax burden for small-scale businesses.
The Ministry further noted that the last increase in the threshold was on 1 January 2007. In recent years, rising prices have caused the sales figures of some businesses exempt from business tax to exceed the current thresholds, subjecting them to taxation. In response to public feedback and to reflect price increases, the thresholds have been adjusted based on a 25% rise in the Consumer Price Index (CPI) since 2007. Approximately 120,000 businesses are expected to benefit, with an estimated TWD 1.068 billion in reduced tax burdens.
The new thresholds will first apply to the first quarter of 2025 (January to March), with the payment period for assessed business tax cases scheduled from 1 – 10 May 2025.
