The Ministry of Finance released guidelines on 6th August that all corporations affected by the COVID-19 pandemic, including those that are eligible to apply for various departmental relief measures, under various conditions such as with any monthly turnover this year decreasing by 15% in comparison to the same month in 2018 or 2019, may apply for exemption this year for paying Profit-seeking Enterprise Income Provisional Tax and wait until the 2022 tax filing season to pay. By preliminary estimate, at least TWD60 billion tax revenue would be affected by this.

Officials pointed out that if the corporation is already eligible to apply for departmental relief measures such as epidemic relief 4.0 of Ministry of Transportation and Ministry of Economic Affairs, they may directly apply for exemption of provisional income tax payment.

Additionally, if the corporation is eligible to apply for exemption of provisional income tax payment last year and this year applying for approval for instalment extension or refund of business tax overpaid retained for offsetting future tax payable, they are directly eligible to apply for exemption of profit-seeking enterprise provisional income tax and not required to submit application.

If the corporation is not eligible to apply for the Government epidemic reliefs, the Ministry of Finance has also stipulated principle of actual recognition under the condition that as long as Corporations’ average turnover of two consecutive months this year or any one month’s turnover, comparing to the same period of second half of 2019 or 2018-2019 decreases 15% or more, they may also apply for exemption of provisional income tax payment by proof of turnover. ...