National Taxation: Questions and Answers about Business Tax

Q: If a new resident wants to open a snack bar, when should he apply for tax registration? What information do I need to prepare? How to collect business tax?
A:
I. Business operators should apply for tax registration with the competent tax collection authority before starting business.

II. The following information needs to be prepared:
(i) Application for registration of establishment (change) of business person
(ii) A copy of the front and back of the person in charge’s ID card, or a residence permit, passport or other identity document for foreigners who have not obtained an ID card
(iii) Seal of person in charge
(iv) Store seal
(v) The latest housing tax bill and housing lease contract (if renting for free, please attach proof of owner’s consent)

III. Relevant application forms can be downloaded from the Ministry of Finance’s Northern District National Taxation Bureau website https://www.ntbna.gov.tw (Homepage>Theme Area>Taxation Area>Business Tax>Tax Registration Area), or you can submit it to the IRS where the business office is located. Request from the tax collection agency.

IV. How to levy business tax:

(i) Sales of goods (such as snack bars, clothing stores) with monthly sales of NT$80,000 or services (such as nail salons) with monthly sales of NT$40,000 are subject to business tax.
(ii) If the monthly sales volume does not reach NT$200,000, the National Taxation Bureau may levy a business tax of 1% of the sales volume. However, if the average monthly sales volume reaches NT$200,000, it meets the standard for using unified invoices. Businesses using unified invoices should calculate the tax payable based on 5% of the sales tax minus the input tax, and report and pay business tax to the National Taxation Bureau every two months.