Taxpayers Facing Difficulties in Paying Substantial Supplementary Taxes Can Apply for Installment Payments with Added Interest for a Maximum Period of 3 Years
The National Taxation Bureau of the Northern Area（NTBNA）, MOF stated that according to Article 26-1 of the Tax Collection Act, in the event that a taxpayer faces difficulties in paying substantial supplementary taxes, an application may be filed for installment payments with added interest for a maximum period of 3 years.
The Bureau explained that the said substantial tax refers to the amount of taxes that need to be paid after reassessment, which is NT$1 million or more for individuals and NT$2 million or more for profit-seeking entities （including organizations and institutions）. If taxpayers have difficulty paying the taxes within the payment deadline, they can apply for installment payment with added interest. However, the taxation bureau can require taxpayers to provide adequate collateral. The scope, value, and other relevant matters of collateral shall be handled in accordance with “Regulations on the Valuation and Recognition of Collateral Accepted by Tax Collection Authorities”. Interest for installment payments is calculated daily from the day following the original tax payment deadline until the payment date, based on a daily basis at the interest rate quoted by the postal savings for a one-year fixed deposit starting from January 1 of each year. The number of installments depends on the amount of the tax liability, ranging from 2 to 24 installments for liabilities between NT$1 million and less than NT$5 million, and 2 to 36 installments for liabilities exceeding NT$5 million.
The Bureau illustrates this with an example. Company A is confirmed a supplementary tax of NT$2.4 million in business tax for the year 2022, with a payment period from October 11 to October 20 of the year 2023. The company faced difficulties in paying the tax in full and it can apply for installment payment during this period and provid collateral of equivalent value that is easily liquidated and preserved. After assessment, the company was allowed to pay in 24 monthly installments starting from November of the year 2023 to October of the year 2025, with each installment covering NT$100,000 of the tax and daily accrued interest from October 21 of the year 2023 to the payment date.
The Bureau would like to remind taxpayers to adhere to the installment payment schedule. The taxation bureau will issue a notice that requires full payment of the unpaid balance within 10 days. Failure to comply may lead to the imposition of surcharges and the unpaid tax will be referred to compulsory enforcement. Taxpayers are advised to stay informed about the installment payment deadlines. If there are any further questions, please dial the toll-free service number 0800-000321 for detailed consultation.
〔News contact: Ms. Chang, Head, Collection and Information Management Division.
Tel. No. （03）3396789, Ext. 1170〕
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=24b8b771a1204582803dfd1add198306