Prior to The Declaration of Scrapping Losses for Fixed Assets That Have Not Reached Their Service Lives, Profit-Seeking Enterprise Shall Report It to The Local Tax Authority for Review.

National Taxation Bureau of Kaohsiung, Ministry of Finance indicated: for fixed assets that are destroyed or abandoned before reaching their service lives prescribed in the Table of Service Life of Fixed Assets due to specific incident, other than providing the report of the auditing and certification by CPA or the report of the auditing and certification of annual income tax, with supporting documents attached, or document of destroyed under supervision issued by competent authority detailing the description, quantity and amount of the fixed asset destroyed under provision for certification and recognition, the profit-seeking enterprise shall report it to the tax authority for review prior to recognizing the losses for the year using its non-depreciated balance amount. The Bureau added, fixed assets that are no longer in use due to company relocation (such as interior decorating equipment), though not yet reach their service lives, shall be handled in accordance with the scrapping procedure prescribed in Paragraph 10, Article 95 of Regulations Governing the Assessment of Profit-Seeking Enterprise Income Tax before being recognized as fixed asset scrapping losses. The Bureau further reminded that income from sale of scrap and wastes of the foregoing fixed assets shall be recognized as profit and declared in annual profit-seeking enterprise income tax return. Contact: Mrs. Bai, the Revenue Assessor of the First Examination Division TEL: 07-7256600 ext.7129