Newsletter
Updated Business Tax Rate for Financial Institutions
For the purpose of financial integrity, the Legislative Yuan passed the amendment to the Business Tax Act in June 2014 to adjust the gross business receipt tax ("GBRT") rates for entities that operate banking, insurance, investment trust, securities, futures and commercial papers businesses as well as pawnshops as follows:
l 5 percent for the revenue generated from non-exclusively authorized businesses (such as a bank's rental income from leasing buildings);
l 2 percent for the revenue generated from businesses that do not fall into the category of non-exclusively authorized businesses (such as a securities firm's underwriting income); however, from July 1, 2014 onward, the revenue that an entity in the banking or insurance industry generates from its core businesses (such as a bank's interest income) is subject to 5 percent GBRT; and
l 1 percent for an insurance company's reinsurance premium income.