Extended Deadlines for Tax Refund Applications in Taiwan

​Tax news -Extended Deadlines for Tax Refund Applications in Taiwan

Taiwan has extended the deadline for taxpayers to apply for refunds on overpaid taxes due to government errors from 10 years to 15 years. This change aims to protect taxpayer rights and ensure fair reimbursement.

Key Issues:

• Longer Refund Period: Taxpayers can now claim refunds for overpaid taxes within 15 years if the overpayment resulted from government miscalculations or incorrect application of tax laws.
  
• Interest Compensation: Refunds will include interest, calculated daily based on the one-year postal savings deposit rate at the start of the year.
  
• Refund Process: Tax authorities usually issue refunds proactively, but taxpayers should monitor mail for refund notices and act if they receive an undelivered check notice.

LY Observation & Comment

1. Extended Tax Refund Deadlines for Foreign Investors – Since the 2021 amendment to the Tax Collection Act, foreign investors or foreign enterprises earning Taiwan-sourced income through transactions with domestic companies can apply for preferential tax rate refunds under domestic tax laws (e.g., Article 25 of the Income Tax Act or Point 15-1 of the Guidelines for Determining Income Sources) within 10 years, instead of the previous 5-year limit.
   
2. International Tax Treaty Refunds Also Extended – Following the 2024 regulatory updates, businesses utilizing international tax treaties to claim preferential tax rate refunds can now also benefit from a 10-year application window.
   
3. Government Errors Allow Refunds for Up to 15 Years – In cases where the government miscalculates taxes, the refund period extends even further to 15 years.

What You Should Do: We strongly recommend reviewing past tax transactions to check for any missed refund opportunities. If you are uncertain about eligibility or require assistance, feel free to contact LY CPA Firm for a professional assessment.

^{Source:經濟日報}