Cross-Border Electronic Services Taxation

Business Tax (VAT) Compliance

Offshore e-commerce suppliers selling cross-border electronic services to individual consumers in Taiwan and generating annual sales exceeding NT$480,000 are required to register for Business Tax in Taiwan.

Definition of Electronic Services:

• Downloadable Services: Services that are downloaded via the Internet or other electronic means and stored on computers or mobile devices, such as smartphones or tablets.

• Online Usage Services: Services used online or through other electronic means without storage on any device, including services provided in digital format such as online games, advertisements, audio-visual content, voice broadcasting, and interactive communications.

• Internet-Based Services: Services accessed through the Internet or other electronic means provided via online platforms established by offshore electronic business entities, which may be utilized at physical locations.

Our Services:

• Business Tax Registration
• Cloud Invoice Issuance
• Business Tax Filing and Payment Assistance

Income Tax Compliance

For foreign profit-seeking enterprises selling cross-border electronic services, income derived from Taiwan sources may qualify for deductible costs and expenses. The taxable income in Taiwan is calculated based on the relevant domestic profit contribution ratio.

Income Recognized as Taiwan-Sourced:

• Digital Goods Sales: Income from selling digital goods (e.g., software, e-books) via the Internet or other electronic means.
• Interactive Electronic Services: Income from providing real-time, interactive, and continuous electronic services via the Internet or other electronic means, such as online games, films, music, and advertisements.
• Service Delivery in Taiwan: Income from services provided through the Internet or other electronic means that involve physical delivery locations within Taiwan, such as accommodation or car rental services.
• Internet-Based Platform Services: Income from offering platform services via the Internet.

Our Services:

• Application for Qualification (including agent) Registration/Amendment

• Application for Net Profit Ratio and Domestic Profit Contribution Ratio for Cross-Border Electronic Services

• Income Tax Filing for Offshore E-commerce Suppliers

• Application for Refund of Overpaid Withholding Tax