Taiwan To Tax Cross-Border e-Commerce,
by Mary Swire, Tax-News.com, Hong Kong
Tuesday, August 16, 2016
Given the recent rapid development of cross-border transactions over the internet,
Taiwan's Ministry of Finance (MOF) has disclosed it is formulating plans to
tax the operations of multinational enterprises (MNEs) engaged in e-commerce
in the country.
The MOF is to invite representatives of MNEs such as Airbnb, Uber, and Agoda,
as well as local tax professionals, to meetings to devise and agree tax reforms
in the sector.
It is expected that reform will consist of insisting that foreign e-commerce
operators establish Taiwanese permanent establishments. These entities would be required to report and remit tax on goods and services provided to the domestic market and pay corporate tax on any profits deriving from local operations.
It is hoped that the tax reform can be implemented in 2017.