Special Export Entertainment Fee Criteria: Export Fact and Foreign Currency Remittance
To encourage export sales, companies making exports are eligible for a special entertainment expense deduction limited to 2% of their export sales. However, companies must meet two criteria: having export facts and receiving foreign currency remittance.
Example:
Company A reported export sales of approximately NTD 7.39 million to customs in 2022. The company claimed special entertainment expenses related to exports of NTD 147,800, which is 2% of the total exported sales amount.
Upon audit, the NTD 147,800 claim was disallowed because although the company had export transactions supported by customs clearance, all export contracts were denominated and received in NTD as agreed with buyers. Therefore, no foreign currency was received.
