Taiwan to Crack Down on Multinationals

August 11, 2016 Taxation in Taiwan

tax in taiwanTAIPEI – Multinationals operating in Taiwan may soon be forced to register in the country and appoint a tax representative.

The Ministry of Finance of Taiwan has announced that it will soon begin taking steps to close loopholes used by large multinational businesses to dodge taxes on incomes earned in the country.

Currently a significant number of multinational businesses, such as Booking.com, Apple, or Agoda, are not paying any taxes on profits made from sales in Taiwan, as they do not have any office or representation in the country and book all of their revenues through online systems located outside the country.

The Ministry of Finance hopes to implement a new set of rules which will require overseas multinationals to register in Taiwan and to appoint a tax representative in the country.

The Ministry is planning to schedule a meeting with representatives of major international businesses and with local accountants and tax agents, in order to discuss the potential implementation of the new tax requirements.

It is expected that the new systems could be implemented before 2017.

Photo By: Chris