Tag: Accounting

What is the definition of a small business entity in Taiwan? There are 4 criteria of a small business entity as below. The business scope is small. The monthly sales amount is lower than NTD$200,00. The monthly sales have been verified by the tax authority. Subject to tax registration if start to run the business. The VAT rate is 1% of the monthly sales. For example, if your monthly sales are NTD$80,000, you will be subject to NTD$800 per month and the payment should be made on a quarterly basis.

In general, a company should file the VAT return every 2 months in Taiwan. However, under certain circumstances, companies can apply for monthly VAT reporting after getting the approval from the tax authority.

All companies in Taiwan are required to keep accurate and complete accounting records in accordance with Taiwan GAAP. This includes maintaining a general ledger, preparing financial statements, and keeping supporting documents such as invoices and receipts.