Foreign Profit-Seeking Enterprises Providing Cross-Border Electronic Services to Domestic Individuals of ROC are Required to File Profit-Seeking Enterprise Income Tax for the Year 2019 Returns during


National Taxation Bureau of Taipei, Ministry of Finance (hereinafter referred to as NTBT) expressed that the income tax declaration period has begun on May 1, 2020. Due to the impact of COVID-19, the declaration period has been extended to June 30, 2020. Foreign profit-seeking enterprises providing cross-border electronic services to domestic individuals of ROC in 2019 and obtaining non-withholding income in  accordance with Article 88 of the Income Tax Act are mandatory to, or engage tax agents to, file tax returns and make tax payments during income tax declaration period, regardless of whether business registration had been canceled in 2018 or 2019.   
  NTBT explained that foreign profit-seeking enterprises are mandatory to, or engage tax agents to, file Profit-Seeking Enterprise Income Tax returns for the year 2019 online via “eTax Portal, Ministry of Finance(website:https://www.etax.nat.gov.tw)/ Tax on Cross-Border Electronic Services/ Profit-Seeking Enterprise Income Tax” and make tax payments during income tax declaration period. 
  NTBT pointed out that foreign profit-seeking enterprises providing cross-border electronic services should beware of the following when filing income tax returns for the year 2019:
1. Those who file their Profit-Seeking Enterprise Income Tax returns for the first time should go online to the “eTax Portal, Ministry of Finance/ Tax on Cross-Border Electronic Services/ Profit-Seeking Enterprise Income Tax” and apply for Qualifications Registration. Certificate of Registration or Permission of its original jurisdiction or authorities of the foreign profit-seeking enterprise should be attached.  Proof of Authority and Letter of Commitment should also be uploaded if apply by a tax agent. After receiving and reviewing the above-mentioned applications, the tax authorities will issue Notice of Acceptance via E-mail. To file Profit-Seeking Enterprise Income Tax returns, foreign profit-seeking enterprises and their tax agents should log on to the “Profit-Seeking Enterprise Income Tax” section and apply their own account numbers and passwords online after receiving such notice. The account numbers and passwords applied last year are still valid for foreign profit-seeking enterprises providing cross-border electronic services who had filed their returns last year. Reapply for a new set is not required.
2. It is not necessary to apply for a separate set of account number and password if the foreign profit-seeking enterprises providing cross-border electronic services have had applied for Business Registration and obtained a set of account number and password for filing Business Tax. The same set of account number and password can be used for filing both Business Tax and Profit-Seeking Enterprise Income Tax returns. Proof of Authority and Letter of Commitment should also be uploaded if filing Profit-Seeking Enterprise Income Tax returns by an agent of Business Tax due to the differences of authorization scope between agents of Business Tax and Profit-Seeking Enterprise Income Tax. Under such circumstance another set of account number and password should be applied after receiving Notice of Acceptance.
3. To calculate taxable income, foreign profit-seeking enterprises are able to apply for the net profit ratio of its major business items of the same trade or the domestic contribution ratio according to Explanatory Decree No.10604704390 issued by the MOF on January 2, 2018. “Application Form for the Net Profit Ratio and Profit Contribution Ratio Applicable to Sale of Cross-border Electronic Services of Foreign Enterprise” should be submitted and supplementary documents such as contracts, major business items, and relevant documents that can specifically divide the relative contribution ratio between onshore and offshore transaction flows to the total profit should be provided together with Profit-Seeking Enterprise Income Tax returns or apply separately. There is no need to re-apply this year for those who had applied and still under approval period.
4. If the residence of the foreign profit-seeking enterprise providing cross-border electronic services locates in a country that has signed a comprehensive Double Taxation Agreements with ROC, and the enterprise does not constitute any permanent establishment within the territory of ROC or does not carry on selling electronic services by the internet or other electronic devices to domestic individuals through permanent establishments, the enterprise may, or appoint an agent to, submit the Resident Certificate issued by the tax authority of the resident country, the copy of contract, engagement letter, and documents related to information of the source revenue with tax authorities, the tax relief can be applied together with filling Profit-Seeking Enterprise Income Tax returns or apply separately. There is no need to re-apply this year for those who had applied and still under approval period.
5.Foreign profit-seeking enterprises should complete information of remittance in accordance with “Introduction to Profit-Seeking Enterprise Income Tax Payments via Designated Bank Accounts for Foreign Profit-Seeking Enterprise selling Cross-Border E-Services”  when remitting Enterprise Income Tax payments. Full-amount payments should be remitted to the NTBT 301 bank account of Bank of Taiwan, Cheng Chung Branch before due date of the tax payable. It is suggested that foreign profit-seeking enterprises providing cross-border electronic services to contact Bank of Taiwan, Cheng Chung Branch by telegram and inquire about the equivalent tax amount through the financial institutions of their own countries or regions. Cheng Chung Branch of Bank of Taiwan will advice the currency exchange rates and relevant service charges or other expenses before foreign profit-seeking enterprises providing cross-border electronic services remit payments as directed.  
  NTBT reminded foreign profit-seeking enterprises to file undeclared Profit-Seeking Enterprise Income Tax for the year 2019 returns as soon as possible.  
(Contact:Mr. Chuang, Section Head of the First Examination Division; Tel: 2311-3711 ext.1337) 

Reference URL:https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=fa2dd57817ea4defbe8a928c910587d6