On March 3, 111, Taiwan Electric Power Company's Xingda Power Plant accident caused a major power outage across Taiwan. The National Taxation Bureau of the Southern District of the Ministry of Finance reminded profit-seeking enterprises that any commodities or raw materials, materials, and products in progress were deteriorated or damaged due to power outages. For those that cannot be sold or processed, the scrap loss can be reported according to regulations.
According to the Bureau, according to Article 101-1 of the Income Tax Review Standards for Profit-seeking Enterprises: “Commodities or raw materials, materials, and work-in-progress are scrapped due to factors such as expiration, deterioration, damage, or sluggishness that prevents them from being sold, processed, or manufactured, except for those that may In addition to verifying the scrapping loss based on the accountant's verification report or annual income tax verification report and attaching relevant materials, the inspection list should be submitted to the competent taxation agency to send personnel to investigate and supervise the destruction, or the business supervisor within 30 days after the fact. The agency supervises the destruction and obtains supporting documents to verify the identification.” Therefore, if a profit-making enterprise is affected by a power outage and causes deterioration or damage to commodities or raw materials, it can be scrapped according to the above regulations, and the loss can be verified and identified.
The bureau further clarified that for a profit-making enterprise that applies for scrapping with an amount of less than NT$5 million each time, it may submit an application to the National Taxation Bureau by submitting relevant materials such as commodity and raw material scrapping report forms, and the review by the National Taxation Bureau shows that there is no abnormality. Those who do not need to conduct on-site inspections, as long as they submit photos before and after the destruction process (with the date added) according to the notice of the National Taxation Bureau, they can complete the inspection.
The bureau reminded that profit-seeking enterprises can apply online at the tax portal of the Ministry of Finance ( https://www.etax.nat.gov.tw ), or they can inquire at the nearest local tax bureau or use the free service line of the bureau 0800-000-321 for inquiries.
Contact person for press release: Section Chief Wu of the First Section of Review 06-2298035
