Taiwan to Collect Income Tax on Foreign E-Commerce Giants

Foreign e-commerce companies, such as Apple Inc. and Expedia Inc., selling to individuals and companies located in Taiwan now must pay 20 percent income tax on those transactions, its tax authority announced.

The levy will begin in May, according to the Dec. 29 Ministry of Finance announcement. Companies would be taxed at 20 percent.

The new requirement, part of moves to combat tax avoidance, comes after Taiwan in May 2017 imposed a 5 percent value-added tax on digital services sold by foreign cross-border e-commerce companies to individuals in Taiwan.

A company must demonstrate the differences in its processes performed ...