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National Taxation Bureau of Kaohsiung of the Ministry of Finance said that a call was received from a profit-seeking enterprise recently asking whether the interest paid for voluntary supplementary payment be listed as expense?

The Bureau stated that the accrued interests in accordance with current tax law are considered as equivalent to the use of monetary costs, which should be the cost profit-seeking enterprise borne and can be expensed. If the profit-seeking enterprise follows Article 48-1 of the Tax Collection Act and voluntary supplementary payment with interested accrued, it can be listed as expense according to paragraph 17, Article 97 of the Regulations Governing Application of Profit-Seeking Enterprise Income Tax amended on January 3, 2017 (hereinafter referred to as the Amended Regulations).

The Bureau further added that if the profit-seeking enterprise pays the interest accrued from paying the provisional tax in accordance with Article 68 of the Income Tax Act, from paying tax deficit of the costs, expenses or lost listed in annual income tax report in accordance with Article 100-2 of the same Act, or from paying the tax confirmed through administrative remedy process in accordance with Article 38 of the Tax Collection Act and the late interest accrued according to various tax laws, following the Amended Regulations, all can be listed as expenses.

Contact: Mrs. Song, the Head of the First Examination Division

TEL: 07-7256600 ext.7188