The Datun Taxation Office of the Central Area of National Taxation Bureau of Ministry of Finance stated: According to the Ministry of Finance's decree (No.11204662230) on December 6, 2023, if a business entity sells goods or services and collects delay interest from the buyer due to delayed payment based on their agreement or through litigation/non-litigation procedures in accordance with Article 233, Paragraph 1 of the Civil Code, this delay interest is not considered as a price of selling goods or services by the business entity and is not subject to business tax. 

The office reminds that business entities can review if they have mistakenly invoiced and paid business tax in such cases. They can fill in an application stating the reason, attach the relevant business tax return and supporting documents, and apply to the local tax office for correction of the business tax filing data.

The office further explained: Some people have called to inquire about similar situations: A company sells a piece of machinery, the buyer delays payment, and after negotiation, both parties agree that the buyer should additionally pay interest on the delayed payment to the company. Is this interest subject to business tax and needs to be invoiced? In conclusion, such delay interest does not need to be invoiced for business tax purposes.

If you have any questions, please call our toll-free service number 0800-000321 for consultation, and we will do our best to serve you.

Contact Person: Datun Office Business Tax Section, Ms. Chi
Tel: (04)2485-2934 ext. 307