Occupants must pay business tax for outdoor ads: MOF

TAIPEI, Taiwan, The China Post Staff

The Ministry of Finance (MOF) said yesterday said that all office or apartment buildings that have outdoor advertisements on their walls or rooftops should pay the government business tax for the advertisement income. Most management committees set up by tenants and companies using the office and residential buildings in Taiwan said the income generated through the outdoor ads belong to the apartments’ common funds, which help pay the daily expenses incurred. For this reason, such incomes should be exempted from taxes. But the MOF holds different views. It said in a statement that the income from renting out space on the exterior walls, rooftops, and balconies of the buildings for ads fall in the category of “sales of labor services.”

The management panels should make business registrations with government agencies for such sales business and pay business tax as stipulated by the regulations. The ministry explained that according to the Business Tax Law, there is no need for management panels of the buildings to issue united invoices for such transactions. But the building administration committees should give out ordinary receipts to advertisers and pay a one percent business tax to the government if the average business turnover — the ad income — does not exceed NT$200,000 per month, the ministry added.