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Department of Finance

Regulations

TCG Municipal Guideline on Collection of Amusement Tax

Title: TCG Municipal Guideline on Collection of Amusement Tax
Date: ( 2011-05-31 Amended )

Chapter 1 General Provisions

Article 1
This Municipal Guideline is formulated in accordance with Article 18 Section 2 Item 2 of the Municipal System Act and Article 17 of the Amusement Tax Act (hereinafter referred to as the Act).

Article 2
Collection of the City’s amusement tax shall be handled by the governing taxation agency of the City.

Article 3
Taxation representatives for the amusement tax are as follows:
1 Persons-in-charge or managers of agencies, schools, public entities, social organizations or their commissaries, social establishments, hostels, clubs sponsoring entertainment events and selling admission tickets or collecting fees.
2 Managers or performers of motion picture, drama, song and dance, storytelling, magic show, circus show, golf, music performance, talent show and skill contest facilities and other entertainment facilities selling admission tickets or collecting fees.

Article 4
The talent show mentioned in the preceding article refers to ballad with drum accompaniment, storytelling interspersed with singing, joggling, vocal mimicry, comic dialogue, ice skating and other special skills that are entertainment in nature. The skill contest above refers to various ball games, swimming, martial art, shooting, car racing and horse racing that are entertainment in nature. The “other entertainment facilities” mentioned above refer to mechanical games, mechanical boats, electronic games and video-showing (MTV) facilities that are entertainment in nature.


Chapter 2 Tax Rate

Article 5
Amusement tax rates are as follows:
1 Motion Pictures
(1)In busy downtown area, 2.5% for foreign language films and 1% for native language films.
(2)In peripheral downtown area 1.5% for foreign language films and 1% for native language films.
(3)In suburban area, 1% for foreign language films and 1% for native language films.
2 Professional singing, dancing, circus show, magic show, talent show and nightclub performances: 5%.
3 Drama, music performance, storytelling, and non-professional singing and dancing: 1.25%.
4 Skill contest: 2.5%.
5 Dancehall or ballroom: 25%.
6 Golf course and other entertainment facilities 2.5%.


Chapter 3 Taxation

Article 6
The governing taxation agency shall dispatch staffs intermittently to audit the way taxation representatives collect the amusement tax on its behalf and shall prepare detailed records, on which taxation representatives shall apply personal seals, for verification.

Article 7
Taxation representatives shall upon selling amusement tickets collect the amusement tax on behalf of the taxation agency and shall post the price of the ticket on conspicuous location of the establishment. In the event where no ticket is sold, and a charge is collected in the form of annual fee, season fee, monthly fee, daily fee, facility fee, tea expense or under any other title, taxation representatives shall upon charging the fee collect the amusement tax on behalf of the taxation agency.

Article 8
In the event where an amusement establishment is under special management or the scale of the operation is insignificant, the governing taxation agency may subject the establishment to investigation-based taxation.

Article 9
The taxation representative shall before the 10th of the next month automatically surrender the amusement tax it collects on behalf of the taxation agency each month. In the case of investigation-based taxation, the governing taxation agency shall issue taxation notice by the end of each month, and the amusement tax due shall be paid within ten days after the notice is served.

Article 10
The business operator or performer shall report temporary amusement event for which admission tickets are sold or fees are collected no matter where it is held to the governing taxation agency ten days prior to the event.
The business operator or performer shall be responsible for printing the admission tickets, which shall be numbered in order with the price and the notation “amusement tax included” clearly indicated. Every five days the tickets shall be examined and the amount of collected amusement tax shall be determined. A deposit form shall be issued to the business operator or performer to make payment to the designated treasury accordingly.
After the amusement event or performance is concluded, the business operator or performer shall turn in the remaining tickets for cancellation within the prescribed period of time given by the governing taxation agency. Remaining expired tickets not submitted shall be deemed sold, and the amusement tax shall be levied accordingly. In the event where tickets of no face value are issued and facility usage fees are collected, or the tickets are issued in exchange for payments, the business operator or performer shall declare the actual amount received and the governing taxation agency shall issue the tax payment notice. The tax amount due shall be paid in full in one payment.

Article 11
Persons-in-charge of performances (shows) in compliance with the provisions set forth in Article 4 Sections 1 and 2 of the Act shall within three days prior to the performances (shows) present the performance (show) permit issued by the governing agency along with priced tickets and tax-payment guaranty to the governing taxation agency and request for examination of ticket numbers and for tax exemption registration for the performance (show). Persons-in-charge of performances (shows) in compliance with Article 4 Section 3 of the Act shall mark the notation “not for sale” on the ticket. Those who fail to obtain prior approval shall not be entitled to amusement tax exemption.
Persons-in-charge of performances (shows) in compliance with the provisions set forth in Article 4 Section 1 of the Act shall within the prescribed period of time after the performances (shows) present proof issued by the governing agency that authorizes the entity to retain all the ticket incomes or proceeds collected for the performance (show) to the taxation agency for tax exemption. Persons-in-charge of performances (shows) in compliance with the provisions set forth in Article 4 Section 2 of the Act shall present receipt issued by the recipient agency and income/expense statement to the taxation agency for tax exemption.

Article 11-1
The tax-payment guaranty of Article 10 Section2 and Article 11 Section 1 may be made in the form of cash deposit or in accordance with the provisions set forth in Article 37 of the Taxation Act.

Article 12
Outdoor stage shows held for religious activities or national celebrations may be exempted from the amusement tax.

Article 13
In the event where after the conclusion of the entertainment event, of which the amusement tax is exempted in accordance with the provisions set forth in Article 4 Section 1 of the Act, it is discovered that not all the income has been directed toward the use of the entity; and in the event where after the conclusion of the entertainment event, of which the amusement tax is exempted in accordance with the provisions set forth in Article 4 Section 2 of the Act for disaster relief or military benefit, it is discovered that the expense has accounted for more than 20% of the total income; the person-in-charge of the tax-exempted entertainment event shall be responsible for paying all the amusement tax due.

Article 14
Taxation representatives shall prior to ticket sales file establishment and adjustment of amusement ticket prices with the governing taxation agency for reference. Taxation representatives who sell tickets of which the price has been raised without prior declaration and continue to declare and pay amusement taxes according to the original price shall be penalized for tax evasion. Admission without ticket shall be deemed failure to collect amusement taxes on behalf of the taxation agency.
Admission ticket prices of dancehalls, ballrooms and nightclubs shall be established bythe governing taxation agency.

Article 15
The number of public relations tickets may be up to 3% of that of priced tickets. However, for temporary entertainment event the number of public relations tickets may be up to 5% of that of priced tickets.
The actual number of the public relations tickets mentioned in the preceding section shall be based on ticket sales of the previous month. The governing taxation agency shall approve the issuance on the third day of the month. Public relations tickets must be used in the same month; outdated public relations tickets shall be voided.
Use of public relations tickets that are outdated or the printing of which has not been verified shall be deemed failure to collect amusement taxes on behalf of the taxation agency.

Article 16
For sales and inventory of amusement tickets, entertainment business operators shall establish a designated logbook to record the original inventory, requisition, sales and current inventory of the amusement tickets on a daily basis and shall prepare a list of actual ticket sales documenting the number of tickets sold and the beginning/ending serial numbers of the tickets sold for audit. Each month entertainment business operators shall prepare monthly ticket sales and inventory statement and submit it to the governing taxation agency for reference within the first three days of the next month.

Article 17
Amusement tickets of the following month may be requested during the current month. However, in addition to the penalties prescribed by law, amusement tickets may not be issued to taxation representatives in tax arrear. The unused amusement tickets of taxation representatives in tax arrear shall also be recalled.

Article 18
(Deleted)

Article 19
Customers of cinemas, theaters and other amusement-ticket-selling entertainment establishments with fixed seats must be seated in accordance with the number of the ticket.
Tickets mentioned in the preceding section shall be sold in order of the serial number of the ticket with the date and the showing time stamped on the ticket and with the notation that shows the location of the seat in accordance with the seat number cancellation table approved by the governing taxation agency. The tickets shall be issued to the customers and shall be ripped upon admission and recorded on the daily statement. Taxation representatives who fail to comply shall be penalized for tax evasion.

Article 20
Entertainment entities authorized for automatic declaration must issue amusement tickets printed by the governing taxation agency to the customers for admission. The receipt slip of the amusement ticket mentioned in the preceding section shall be kept by taxation representatives for one year.

Article 21
Taxation representatives who use amusement tickets that have not been numbered and verified by the governing taxation agency, or issue receipt slips of amusement tickets, or paper slips, or number slips, or other similar replacement of amusement tickets to the customers for admission shall be penalized for failure to collect amusement tax on behalf of the governing taxation agency.
Amusement tax shall be levied against tea tickets, tea cards, drink tickets or similar replacement tickets sold along with the amusement tickets by taxation representatives.

Article 22
(Deleted)

Article 23
The seat number cancellation table of amusement tickets shall be attached to the periodical ticket sales/inventory statement submitted to the governing taxation agency for audit.


Chapter 4 Incentives and Penalties

Article 24
In the event where taxation representatives faithfully collect taxes on behalf of the governing taxation agency and pay the taxes in time, the governing taxation agency shall give the taxation representatives 1% of the taxes collected as bonus, which is to be deducted from the tax amount due by the taxation representatives when making the tax payment.
The bonus mentioned in the previous section must be deducted when tax payment is made. No accumulated bonuses may be deducted.

Article 25
In the event where a taxation representative is found in violation of the provisions set forth in the Act, the governing taxation agency shall recall the bonus deducted for the period in which the taxation representative has been found in violation.

Article 26
The governing taxation agency shall issue notice to taxation representatives in tax arrear and demand that the overdue amusement tax be paid in full in ten days.

Article 27
(Deleted)


Chapter 5 Addendum

Article 28
This Municipal Guideline shall be in effect on the date it is promulgated.