Small-scale business operators who switch to using unified invoices during the year should file a profit-making enterprise income tax settlement declaration

If a small-scale profit-making enterprise changes to using unified invoices during the year, it should file a profit-making enterprise income tax return in the same year and report the business income together with the sales volume during the period of exemption from unified invoices and the sales volume for which unified invoices were issued.

The Kaohsiung National Taxation Bureau of the Ministry of Finance explained that small-scale business operators who switch to using unified invoices during the year should not only combine the verified sales with the sales for which unified invoices have been issued when reporting the business income for profit-seeking corporate income tax, but if the actual sales during the period of exemption from the use of unified invoices are found to be higher than the original verified sales, they should report the actual sales together.

The bureau gave an example, saying that Company A was originally a small-scale business operator exempted from using unified invoices. Its monthly sales from January to June 2014 were NT$180,000. Later, due to its larger business scale, it was changed to a business operator using unified invoices from July 1 of the same year. Its sales from issuing unified invoices from July to December were NT$3,500,000. Therefore, when Company A files its 2014 corporate income tax return, the total operating income it should report should be RMB 4,580,000 (= RMB 180,000 × 6 months + RMB 3,500,000). If Company A finds through investigation that its actual sales revenue during the period from January to June 2014 when it was exempted from using unified invoices was NT$1,500,000, which is higher than the originally determined sales revenue, then Company A should declare its operating revenue for that year as NT$5,000,000 (=NT$1,500,000 + NT$3,500,000).

The bureau reminds that if a profit-making business changes to using unified invoices during the year, please review again and file settlement declarations in accordance with relevant regulations. If there are any omissions, please file supplementary declarations as soon as possible. If the public has any questions, they can call the toll-free service number 0800-000-321 for inquiries, or go to the bureau’s website (https://www.ntbk.gov.tw) and use the National Tax Bureau’s smart customer service “National Tax Bureau Assistant” to inquire online.

Provided by: General Administration Group
Contact Person: Li Binting, Section Chief Tel: (07) 7256600 ext. 7770
Written by: Lin Jiayu Contact number: (07) 7256600 ext. 7773