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Taiwan Clarifies Requirements to Claim Expense or Loss in Case of Theft — Orbitax Tax News & Alerts

Taiwan's Ministry of Finance has issued a notice that clarifies the certification document requirements for claiming an expense or loss in case of theft.


Profit-seeking enterprises shall obtain the certification documents required by the tax law in case of loss from theft

National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance, stated that in cases where profit-seeking enterprises incur losses due to theft that cannot be recovered, the portion which is not covered by insurance compensation can be determined and verified with the submission of a list of items lost and documentation certified by the police, in accordance with Article 103 of the Income Tax Inspection Guidelines for Profit-seeking Enterprises.

The Bureau has recently received calls from some profit-seeking enterprises inquiring as to whether losses incurred by the company's property being stolen during the holidays can be registered. The Bureau states that, in accordance with the provisions of the aforementioned law, where the loss of theft cannot be recovered and the list of lost items and the documentation certified by the police are submitted, the amount after deduction of insurance compensation can be recognized as other expenses or losses.

The Bureau would like to remind profit-seeking enterprises to comply with tax laws and related regulations to obtain certification documents when claiming expense and loss to maintain the rights and interests. If you have any questions, please visit the website of NTBNA at or call the toll-free number 0800-000321 for more information on the relevant aspects of the subject. The Bureau is pleased to provide further consultation services for your inquiry.