When a profit-seeking enterprise declares a discount for export goods or labor services, it shall obtain relevant certification documents for verification and confirmation

The Taipei National Taxation Bureau of the Ministry of Finance stated that when a profit-seeking enterprise declares a discount for export goods or labor services, it should remind the foreign manufacturer to issue a statement stating the reason for the discount, the amount of the discount, and the method of the discount (such as reducing foreign exchange or offsetting other payments, etc.) supporting documents for verification.
The Bureau explained that the sales discount refers to the sale of goods or services. After the agreement between the buyer and the seller, the sales price is deducted from the purchase price but not actually collected, that is, the reduction or exemption of the sales price. The reason is included in the contract. During the performance, if there are matters that were not considered at the time of the contract, such as the quality of the goods is defective, or the goods are damaged during transportation, in order to successfully complete the transaction, a discount is given on the selling price, or the mantissa of the payment is waived, so the profit-making enterprise When declaring a discount for export, in addition to providing proof of underpayment, evidence of the reason for the discount must also be provided to determine whether it meets the discount for export.
For example, the Bureau explained that when checking the income tax settlement declaration case of a profit-seeking enterprise in 2008, it found that it listed a discount of 5 million yuan for the reimbursement of goods, of which the discount for export goods was 2 million yuan. NOTE), unable to provide proof of the reasons for giving discounts to foreign manufacturers and the methods of discounts (such as reducing foreign exchange or offsetting other payment for goods, etc.), it has been denied in accordance with Article 20, Item 2 of the Profit Enterprise Income Tax Review Standards Therefore, the tax payment was adjusted to 400,000 yuan.
The bureau reminded that profit-seeking enterprises should present discount certification documents to support the fact of discount in order to avoid being adjusted and paid by the tax collection agency.
(Contact person: Section Chief Guo of the First Section of Review; Tel. 2311-3711, extension 1250)