By Kuo Chia-erh / Staff reporterThe Ministry of Finance on Thursday said it would next week announce plans to levy corporate income taxes on cross-border e-commerce operators in a bid to close loopholes that have allowed international e-commerce firms to evade taxes. International e-commerce operators often choose not to set up physical branches in overseas markets, but instead run their businesses on digital platforms, which enable them to dodge taxes. The corporate income tax rate for this type of cross-border e-commerce company should be 20 percent, it said. The move marks another step toward preventing tax avoidance, after the ministry earlier this year began imposing a 5 percent business tax on cross-border transactions by e-commerce companies. The amendments are in line with the OECD’s base erosion and profit-shifting scheme, which aims to prevent tax avoidance by multinationals and resolve cross-border tax disputes.

Source: Taipei Times December 29, 2017 15:56 UTC