Department of Finance

Taipei City Government (TCG) today (June, 28) promulgated the " Taipei City Local Tax Installment Application Regulations ". Department of Finance (DOF) of TCG stated that considering the possible difficulties of taxpayers failing in paying taxes, also to assist in fulfilling their tax obligations, a measure of installment shall be established to enhance the harmony between taxpayers and the agency; in addition, considering that the “Special Act for Prevention, Relief and Revitalization Measures for Severe Pneumonia with Novel Pathogens” and the principle of applying for deferral or installment tax payment due to the impact of the COVID-19 are going to be terminated on June 30, 2023, the regulations will come into effect on July 1 as a continuous measure for taxpayers to apply for deferred tax payment.

DOF indicates that although Article 26 of the recent Tax Collection Act provides the application of interest-free tax deferral for those affected by natural disasters, events, force majeure, or economic disadvantages groups with low-income, However, individual, profit-seeking organization or enterprise taxpayers with economic disadvantages, temporary financial difficulties, and large amount of back taxes that do not meet the requirements, who fail to carry out financial planning in advance would lead to turnover failure, also should be assisted to fulfill the tax payment. In addition, to balance the negative benefits of deferrals of taxes, interest accrued for the installment payment for the sake of fairness among the taxpayers. On the other hand, For individuals at a financial disadvantage such as recipients of unemployment benefits, living allowances for vocational training, emergency relief or medical subsidies, middle-low income households, and those who are involuntarily discharged from their jobs, the installment payments measure provides assistance free from interest to alleviate their financial burden. Since the addition of Article 26-1 of the Tax Collection Act, which authorized local governments to establish installment regulations, which is the first initiative of local tax authorities nationwide to take care of economically disadvantaged groups by waiving interest.

DOF further explained that, in order to protect the interests of the taxpayers and to guarantee revenues of the municipal treasury, the " Taipei City Local Tax Installment Application Regulations " applies to the principal tax, belated surcharge, belated interest and fine of the vehicle license tax, house tax, land value tax, and stamp tax. Not only individuals who have financial difficulties due to objective facts such as receiving unemployment benefits or middle-low income households, but also profit-seeking organizations or enterprises suffer income reduction of 30% and above, or the amount of additional tax payable over NT$100, 000 could meet the conditions of application for the installment. For cases whose tax deferment has been approved by other laws and regulations, the applicant may also apply for a further installment of the unpaid tax under these new regulations. The payments of installments could be divided into 2 to 36 periods (a period is one month) according to the tax brackets, and interest is added daily according to the one-year regular savings fixed interest rate of the postal deposit advocated on January 1 of each year.

DOF reminds taxpayers to submit applications within the deadline of the original tax bill by attaching relevant documents and applications or to visit the Taipei City Revenue Service website for the "Taipei City Deferral or Installment Payment of Local Taxes" page to inquire measures about the regulations. Taxpayers having any questions, please feel free to call 02-23949211 ext. 181 or 182 for service and answers.