The company's reported expenses or losses should be related to the business and obtain legal certificates in accordance with regulations

The Taipei National Taxation Bureau of the Ministry of Finance stated that the company's reporting expenses or losses should be related to business and obtain legal certificates in accordance with regulations.
The Bureau stated that according to Article 38 of the Income Tax Law and Article 62 of the Income Tax Review Standards for Profit-seeking Enterprises, expenses and losses other than operating the main business and subsidiary businesses, or family expenses, and late filing fees and late filing fees stipulated in various tax laws , Late payment fees, etc. and various fines shall not be listed as expenses or losses. Therefore, even if the amount of expenses or losses reported by a profit-seeking enterprise is within the limits stipulated in the Income Tax Law, it must still be related to the business and legal documents must be obtained in accordance with the regulations before reporting.
The bureau gave an example, Company A’s 2009 profit-seeking enterprise income tax settlement declaration reported communication expenses NT$4.2 million (the same below), although it did not exceed the limit stipulated in Article 37 of the Income Tax Law and Article 80 of the profit-seeking enterprise income tax review standards However, after checking, it was found that one of the expenditures amounted to 900,000 yuan. The uniform invoice obtained stated that the product name of the purchased product was a sofa. Because Company A only reminded the uniform invoice and could not reasonably explain the object of the communication expenses, and did not Relevant certification documents related to the business are reminded, so the communication expenses for the current year are reduced by 900,000 yuan in accordance with the regulations disclosed above.
The bureau called on profit-seeking enterprises to file income tax settlements and do not report expenses or losses that are not related to business operations, so as to avoid being excluded from taxes that do not comply with tax laws.
(Contact: Review One Coro Auditor; Tel. 2311-3711 Ext. 1350)

Issued by: Taipei National Taxation Bureau, Ministry of Finance Release date: 2022-04-07 Update date: 2022-04-07