Paragraph 1, Article 30 of the Business Tax Act provides that in the case of a merger, transfer, dissolution or cessation of business of a business entity, an application for cancellation of business registration should be filed with the competent tax authorities within fifteen days after the occurrence of such event. Subparagraph 3, Paragraph 1, Article 39 of the Business Tax Act stipulates that when an application for cancellation of business registration is filed in the aforesaid event, the overpaid business tax shall be refunded to the business entity after the competent tax authorities' verification. However, given that business entities often failed to cancel their business registration, the Ministry of Finance ("MOF") issued Letter Ref. No.: Tai-Cai-Shui-Zi-10100079890 on 8 May 2012 to elaborate on the start date of the statute of limitations for filing an overpaid business tax refund application.

According to the MOF's letter, for those business entities that need not be liquidated (i.e., where a company's dissolution is caused by a merger, spin-off, or bankruptcy pursuant to Article 24 of the Company Act), the five-year statute of limitations should start from the date following the occurrence of such event; as for those business entities that should complete the liquidation procedure, the five-year statute of limitations should start from the date following the completion of the liquidation. It is advisable for business entities to apply for cancellation of business registration within the prescribed period to avoid a fine of no less than NT$1,500 and no more than NT$15,000. Business entities should also note the time limits for filing a business tax refund application to ensure their legal entitlement.