Determining Taiwan-Sourced Income for Cross-Border Electronic Services
When a foreign PO establishes platforms on the Internet (online virtual stores) where onshore and offshore sellers and buyers conduct transactions, if one of the parties in transaction is an individual, company, organization, institution, or entity within Taiwan, the remunerations collected from the seller and buyer shall be recognized as Taiwan-sourced income.
Examples are as below:
– A foreign company A sells electronic services to domestic individual C via foreign platform B, then the service fees collected by platform B from seller A or from domestic individual C are regarded as B’s Taiwan-sourced income;
-A domestic company D sells electronic services to the foreign individual E via foreign platform F, then the service fees collected by platform F from domestic company D or foreign individual E are regarded as F’s Taiwan-sourced income.
