The Northern District National Taxation Bureau of the Ministry of Finance stated that the 2013 corporate income tax filing and 2011 undistributed earnings filing will begin on May 1, 2014. In order to assist companies in filing and paying taxes correctly, the following common errors or omissions have been compiled to remind companies to pay attention:
1. Gains from securities and futures trading that have been suspended from taxation are not included in the basic income amount.
2. Foreign dividend income obtained from investment in foreign profit-seeking enterprises is not included in taxable income.
3. Where an application for investment deduction under Article 10, Article 10-1, and Article 10-2 of the Industrial Innovation Act is made, but the application is not submitted to the relevant central competent authority for review by attaching the investment plans and the applicable investment deduction expenditure items and documents within the application period prescribed by the respective investment deduction regulations (three months before the beginning of the period for filing the profit-seeking enterprise income tax return for the current year for Articles 10 and 10-2, and four months before the beginning of the period for filing the profit-seeking enterprise income tax return for the current year for Article 10-1).
4. Where an application is made for investment deduction for research and development expenses under Article 10 of the Industrial Innovation Act, but the expenditure reported for joint research and development with domestic or foreign companies, colleges, universities, or research institutions is not submitted for special approval from the central competent authority of the industry in accordance with Article 8, Paragraph 3 of the Regulations Governing Investment Deduction for Research and Development Expenses of Companies or Limited Partnerships.
5. When deducting actual investment amount from retained earnings, the amount is limited to the construction or purchase of buildings, hardware and software equipment, or technology for self-production or business use with retained earnings, and does not include the purchase of land and equipment and facilities that are not capital expenditures.

The bureau reminds that when profit-making businesses file their 2013 profit-making income tax returns and 2012 undistributed earnings returns, they should carefully check whether the above-mentioned circumstances exist and file their returns correctly in accordance with relevant laws and regulations. If profit-making businesses still have questions, they can visit the bureau’s website ( https://www.ntbna.gov.tw ) to check relevant laws or call the toll-free service number 0800-000321 for inquiries. The bureau will wholeheartedly provide detailed consulting services.

Contact person for press release: Liu, Section Chief, Business Taxation Group Contact phone number: (03) 3396789 ext. 1330