A delinquency Charge will be 1% of the Unpaid Tax and be Charged” Every 3 Days” Starting from 2022

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National Taxation Bureau of Kaohsiung, Ministry of Finance expressed that, to maintain taxpayers’ rights, amendments were made to Article 20 of Tax Collection Act: The delinquency charge imposed on a taxpayer who fails to pay the tax by the specified deadline will be 1% of the amount of the said tax and be charged “every 3 days” instead of “every 2 days”; and, when the period of delay exceeds 30 days, the maximum of total charge rate is reduced from 15% to 10%. The amendments become effective on January 1, 2022.

The Bureau explained with an example: Mr. Wong sold a property for NTD12 million in October 2021 and filed individual housing and land transaction income tax as prescribed by law. Later in April 2022, Mr. Wong received a tax payment slip and, only after reviewing the approved content, he was managed to know that he had to pay an overdue tax and the reason for it. That is, as he failed to retain expense certificates when calculating the individual housing and land transaction income tax, he could file NTD360,000 (NTD12 million x 3%; i.e., 3% of the closing price) as “reducible transfer expense”. Nevertheless, as this amount already exceeded the maximum prescribed amount (NTD300,000 as prescribed in tax law), the Bureau therefore removed NTD60,000, calculated it with its applicable tax rate (45%), and requested Mr. Wong to pay the overdue tax of NTD27,000 before May 20, 2022. Nevertheless, Mr. Wong was busy at work and, only until June 2022, found out that he failed to pay, and the payment was delayed for 19 days. Consequently, Mr. Wong not only paid the unpaid tax, but also paid the delinquency charge NTD1,620 (27,000元×6%; i.e., 6% of the overdue tax).

The Bureau reminded the taxpayers to check the approval content when receive the tax payment. If having any question, it is a must to make inquiry to the original approval tax collection authority. If there is no problem with the content, it is a must to arrange the payment before the deadline to avoid the delinquency charge. If the taxpayer fails to pay for more than 30 days, the case will be transfer to the competent authority for enforcement.

Contact: Mrs. Hsieh, Head of the Collection Division

TEL: 07-7256600 ext.7630

Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8d5c3855299448ea885ff40bc0a5eb6a