{"id":90544,"date":"2023-09-07T10:41:39","date_gmt":"2023-09-07T02:41:39","guid":{"rendered":"https:\/\/premiatnc.com\/tw\/?p=90544"},"modified":"2024-03-11T11:15:43","modified_gmt":"2024-03-11T03:15:43","slug":"taiwan-cross-border-electronic-services","status":"publish","type":"post","link":"https:\/\/premiatnc.com\/tw\/blogging\/taiwan-cross-border-electronic-services\/","title":{"rendered":"Unlocking Taxation Benefits: Withholding Tax on Taiwan Cross-Border Electronic Services\u00a0"},"content":{"rendered":"\n
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In an era dominated by digitalization, cross-border electronic services have become a cornerstone of international trade and business growth. As the world relies more on digital transactions, it’s really important for international businesses to know how taxes work for online services. <\/p>\n\n\n\n

This article will explain on the tax system on Taiwan cross-border electronic services and the reduction of withholding tax. It will help those foreign enterprises earning income from Taiwan buyers via online transactions<\/a>. <\/p>\n\n\n\n

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Book Your Free Taxation Advisory Now!<\/a><\/div>\n<\/div>\n\n\n\n
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Understanding the Definition of Taiwan Cross-Border Electronic Services <\/h2>\n\n\n\n

International businesses sometimes are easily to encounter the tax issue when providing online services to Taiwan clients or payers. Thus, it is important to understand the definition of Taiwan cross-border electronic service listed as below: <\/p>\n\n\n\n

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  1. The services used via the internet or other electronic tools and saved to devices (such as smartphone, tablet computer, etc.) for use.  <\/li>\n<\/ol>\n\n\n\n
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    1. The services used online without being stored on any devices, such as online games, advertisements, audio-visual browsing, and voice frequency broadcasting, information contents and interactive communications.  <\/li>\n<\/ol>\n\n\n\n
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      1. Other services used are provided through the internet, e.g., the services provided through online platforms and used at physical locations. <\/li>\n<\/ol>\n\n\n\n

        Based on the business models and payment method, foreign enterprises providing cross-border electronic services are mainly divided into two types as below: <\/p>\n\n\n\n

        Foreign Platform Operator <\/h3>\n\n\n\n

        A foreign enterprise establishes platforms on the internet for buyers and sellers to conduct the international transactions and collect service fees from platform users. <\/p>\n\n\n\n

        Recognition of Income Sources from Taiwan <\/strong><\/p>\n\n\n\n

        A Foreign Platform Operator establishes platforms on the internet for sellers and buyers conduct international transactions. If the seller or buyer is located in the territory of Taiwan, the service fees shall be recognized as income sources from Taiwan. <\/a>  <\/p>\n\n\n\n

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        Boost Your Business With Our All-In-One Taxation Solution!<\/a><\/div>\n<\/div>\n\n\n\n
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        Foreign Non-Platform Service Provider <\/h3>\n\n\n\n

        A company offers non-platform electronic services to the buyers via its website or platforms, such as selling e-books and standardized software, online games, online music and films, online advertisements, social networking site, online database or auction. <\/p>\n\n\n\n

        Recognition of Income Sources from Taiwan <\/strong><\/p>\n\n\n\n

        (1) The sale of the electronic service is used WITHOUT a physical location: <\/p>\n\n\n\n