Taxation Compliance Service
T1:Taxation Compliance Services for Foreign-owned Trading Companies
For those enterprises who have big volume, cross country trading, self-recruited accountants, cashiers, payroll handlers and self-implemented ERP systems we provide the service package below:
T1 = S4c + S4d + S4e — VAT + GL + Tax Cost Accounting: for Taxation Compliance Service for foreign-owned enterprises
Here is a T1 case for your reference:
T1 case for foreign-owned enterprises in Taiwan
If you need more information or a quotation please email: sales.taiwan@evershinecpa.com
Why do our present clients need T1 service for taxation compliance?
GUI (Government Unified Invoice) is popular in most Asian countries.
When filing VAT (Value-added Tax) for your subsidiary, it needs to have a second booking based on domestic currency.
The GUI is being used as a very important crosscheck tool in the VAT Tax System.
When importing or exporting, a customs declaration would be deemed as a GUI.
Every one or two months, your subsidiary needs to do VAT filing.
VAT filings need to be based on the local currency.
Therefore, if your global ERP system originally used a foreign currency as a booking unit, when filing VAT in your subsidiary it needs to have a second booking using a domestic currency.
For tax purposes, a relevant cost accounting report based on the domestic currency needs to be well prepared, otherwise an alternate corporate income ratio would be adopted.
If a company does not provide enough documents and financial reports to the Tax Bureau, its accounting system would be deemed incomplete.
In this situation corporate income tax would be derived from an industry deemed net profit ratio multiplied by revenue and the corporate income tax rate.
Those that are deemed to have sufficient documents and financial reports, cost accounting relevant reports based on the domestic currency for tax use should be the most difficult work.
The elements which compose the cost accounting must first match with individual VAT records.
Secondly, the operation needs to keep inventory quantity traceable to whatever purchase in, usage, or sale out.
Evershine designed the Cost Validation System for conveniently preparing tax cost accounting reports in order to comply with tax regulations.
T1 case for foreign-owned enterprises in Taiwan
T1 Service Package For Companies with Employees over 300
One of our clients is a famous USA-based, global semi-conductor distribution company with revenue of about US$700 million.
It’s Taiwan subsidiary has revenue of about US$220 million, and performs the functions of purchasing, testing, packaging, shipping and RMA handling.
They have a self-implemented Oracle Supply Chain System based on the US Dollar.
In the Taiwan subsidiary they have self-recruited accountants, cashiers and payroll handlers.
The Taiwan subsidiary engaged Evershine to maintain tax compliance.
Evershine downloaded its transactions from the Taiwan Customs Bureau and then matched them with data downloaded from its self-implemented Oracle Supply Chain System.
After being matched, then the monthly VAT filing was filed with the New Taiwan Dollar as the currency for the tax refund.
Then Evershine did the bookkeeping based on the New Taiwan Dollar using our AIS (Accounting Information System).
After that, the cost accounting using the New Taiwan Dollar was created using our CAVS (Cost Accounting Validation System).
In the end, the tax savings was about US$2.5 million.
Evershine prepared all necessary financial reports and cost accounting relevant reports to file with the Taiwan Tax Bureau in order to avoid an alternate profit ratio being adopted.
