Taipei, Dec. 9 (CNA) The Legislative Yuan passed an amendment Friday that will require international e-commerce operators in Taiwan to pay business tax.

According to the amendment to the Value-added and Non-Value-added Business Tax Act, international e-commerce companies operating in Taiwan must register their presence with the local tax authorities or face a fine of up to NT$30,000 (US$943).

Companies that fail to file their tax returns can also be fined up to NT$30,000, the amendment stipulates.

Opposition Kuomintang Legislator Tseng Ming-chung (曾銘宗) said the amendment is meant to address a loophole in which international e-commerce companies such as Facebook and Google do not have to pay taxes in Taiwan, even though they are doing business in the country.

According to Tseng, the change will not affect consumers much, but will increase the government’s revenues.

If these kinds of companies set up branches or subsidiaries in Taiwan in the future, it will create more jobs for locals and provide more protection for their services in Taiwan, he said.

(By Justin Su and Y.F. Low)
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