Newspaper article China Post

Cross-Border E-Commerce Transactions Subject to Business Tax Starting May 1

Newspaper article China Post

Cross-Border E-Commerce Transactions Subject to Business Tax Starting May 1

Article excerpt

TAIPEI, Taiwan -- Cross-border e-commerce transactions will be subject to 5 percent business tax starting May 1, according to the Ministry of Finance (MOF).

Starting next month, cross-border e-commerce operators with annual sales reaching NT$480,000 must register with the government and pay business tax, the ministry said.

The new requirements are mandated by revisions to the tax law made Dec. 28, the ministry said, adding the new policy was in line with an international trend aimed at maintaining taxation fairness. As offshore e-commerce operators may not have fixed physical offices, currently it is the Taiwan purchasers who must pay the business tax.

Transaction amounts under NT$3,000 are exempt from the tax, but this threshold creates a loophole that leads to unfair taxation and the loss of tax revenues for the government, the MOF said. …

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