The Kaohsiung National Taxation Bureau of the Ministry of Finance stated that, regarding people calling to inquire about business operators who sell both taxable and tax-free goods, can they apply for a correction to the direct deduction method to calculate the business tax amount after reporting business tax using the proportional deduction method?
The bureau stated that if a concurrent business operator complies with the provisions of Article 8-1 of the Measures for the Calculation of Business Tax for Concurrent Business Operators, and has complete accounting records and can clearly distinguish the actual use of the purchased goods, services or imported goods, the "direct deduction" may be adopted. According to the actual use of goods or services, the amount of input tax that can be deducted from the output tax is calculated; and in accordance with the provisions of the Ministry of Finance's Dec. The calculation of the adjusted business tax amount should be limited to the cases of each year that have not been verified and determined. Therefore, if the concurrent business operator declares the business tax that originally adopts the "proportional deduction method" to adjust the tax amount, it must, before the business tax of the current period is determined. Only when the "direct deduction method" can be used to adjust the current tax amount, and it cannot be changed within 3 years after the adoption.
The bureau lists the following examples for the timetable for changing the reporting period (it will be postponed if it falls on a holiday):
| reporting period (period/month) | March-April 111 | May 111 |
| Approved Announcement Date (Within 6 months from the day after the deadline for reporting) | November 14, 111 | December 13, 111 |
| put forward the deadline (Approved announcement date + 30 days) | December 14, 111 | 1/12/112 |
The bureau reminded that, according to the reporting period of March-April in the above example, if the company originally adopted the proportional deduction method to declare business tax, and then intends to change to the direct deduction method to calculate the business tax amount, it should be counted 30 days from the next day of the announcement (that is, December 14, 2011); if the submission is beyond the limit, the calculation method cannot be changed since the business tax of the current period has been verified and determined. It can only be processed if the previous correction is made to protect its own rights and interests. If the public has relevant questions, they can call the free service number 0800-000-321, or go to the website of the bureau (https://www.ntbk.gov.tw) and use the National Tax Smart Customer Service "National Tax Helper" for inquiries .
Provider: Fengshan Branch Contact person: Lin Chuanxiong, section chief Tel: (07)7404001 extension 5930
Writer: Zhou Shuling Tel: (07)7404001 extension 5988
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