On 16 September 2026, the Ministry of Finance issued a ruling clarifying that foreign profit-seeking enterprises are exempt from the requirement to have offshore-incurred cost or expense documentation verified by a Taiwanese embassy, consulate, or authorized agency. This interpretation applies to Article 33 of the Income Tax Act and related enforcement rules. The ruling aims to reduce administrative burden on foreign investors and align with international practices for cross-border expense substantiation.
Key Takeaways
- Verification Waiver: Foreign enterprises no longer need to obtain consular authentication for invoices, receipts, or contracts generated outside Taiwan when claiming deductions for Taiwan-sourced income, provided the documents meet authenticity standards.
- Record-Keeping Obligation Remains: While verification is waived, enterprises must retain original documents for at least five years and make them available for audit by the Tax Authority upon request.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement