New Regulations governing the Business Tax of Tutoring Centers will start from January 1st, 2018

There will be an adjustment to the tax exemption regulation for Tutoring course fee starting from January 1st next year; such change will be made according to the legality of the center (whether it is an incorporated organization approved by the competent education authority) and its organizational structure.


National Taxation Bureau of Kaohsiung of Ministry of Finance (MOF) expresses that, after reviewed cram schools relevant tax laws, MOF already abolished the term “education service fees charged by unincorporated cram schools and incorporated short-term cram schools for learning courses are exempted from the tax” and such abolishment shall take effect from January 1st, 2018. The new tax exemption regulation for cram schools is as follows:

1.Education service fees charged by unincorporated cram schools that already submitted the incorporation application to the competent education authority will be exempted from the tax; education service fees charged by incorporated profit-seeking cram schools shall be taxed.

2.Unincorporated cram schools shall be investigated and handled according to relevant regulations and their received education service fees shall be taxed according to laws.


The Bureau indicates that, to reduce disputes between tax collector and payer, it will send official letters to unincorporated and short-term incorporated cram schools, reminding them to review their status. For those who comply with the said status shall have their business registered at local competent tax authority and tax paid before December 31st, 2017. In case of having any questions, Tutoring center can consult with the branches and offices upon receipt of the said letter.


Contact: Ms.YEH, Revenue office of the forth Examination Division

TEL: (07)725 6600, ext.7332

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