Compliance
Entity Income Reporting in Taiwan: What Businesses Should Know for 2026 Declaration
Recent updates in Taiwan’s reporting rules for businesses—including tax forms revisions and sunset of COVID-subsidy exemptions—require careful attention before the 2026 profit-seeking enterprise filings.
By NomadicTax Research Team • 5-8 min read • September 15, 2026
“2026 means compliance season has new rules in Taiwan—companies, especially exporters or firms receiving government transfers, face updated forms and rules. Here’s what’s changed and how to stay ahead.”
## What's New in Entity Income Tax Reporting
From filings for the **114th fiscal year** (which many Taiwanese companies reporting in 2026 will use), several changes are in place:
- The **NTB (National Taxation Bureau of Taipei)** has released updated 114th year profit-seeking enterprise income tax return forms, with **key revisions** highlighted. ([ntbt.gov.tw](https://www.ntbt.gov.tw/singlehtml/41ae3594197f4f69b47753ce08188516?cntId=924c2c3a2fd8417da498a3f00f155d10&utm_source=openai))
- Important: the provisions that allowed **government subsidy income** to be **exempt from income tax** (under COVID-special relief laws) have expired as of **June 30, 2023**, and related explanations have been removed from forms. ([ntbt.gov.tw](https://www.ntbt.gov.tw/singlehtml/41ae3594197f4f69b47753ce08188516?cntId=924c2c3a2fd8417da498a3f00f155d10&utm_source=openai))
- For companies benefitting from investment tax credits (via biotech, culture & creative industries, or Innovative Industry statutes), **new columns and annexes** have been added to forms to reflect shareholding duration requirements and project-investment reporting. ([ntbt.gov.tw](https://www.ntbt.gov.tw/singlehtml/41ae3594197f4f69b47753ce08188516?cntId=924c2c3a2fd8417da498a3f00f155d10&utm_source=openai))
## Why It Matters: Risks and Impacts
- Mis-filing or using outdated forms could lead to rejected returns, delayed refunds, or exposure to **audit inquiries**.
- Expired exemptions mean subsidy income is now taxable—firms must ensure they report it properly.
- Investment tax credit projects often come with strict requirements on shareholder duration or investment timelines—incorrect reporting can result in claim rejections or claw-backs.
## Compliance Checklist
- **Download latest forms** from the NTBT website—ensure you use the updated annexes for tax credits.
- **Review all sources of income**, especially those from government grants or subsidy programs—if they're no longer exempt, include them.
- **Collect proofs** for shareholdings, project documentation, and investment start/end dates if claiming credits.
- **Consult with tax counsel** for international entities or partners to ensure reporting aligns with MOF guidance and cross-border issues.
## Practical Case Example
A biotech company participated in a government-funded program and earlier claimed tax credits under “Biotech Medical Industry Development Act.” It also received subsidy payments in mid-2023 under special relief. For its 114th year filing:
- Ensure the investment credit columns in the form are completed and supported by proof that shareholders met the holding period.
- Subsidy income from COVID relief programs that expired June 30, 2023 must now be included in taxable income. Using old forms or assuming exemption can lead to under-reporting.
## Strategic Tips for Businesses
- Plan investments and shareholdings to satisfy eligibility timelines for tax credits.
- Coordinate with finance/legal departments ahead of fiscal year close to gather necessary documentation.
- Monitor MOF or NTBT announcements—Issuances may include clarifications, or addenda to forms.
- Use electronic filing where available; many updates are in online systems.
**Bottom line**: The window to comply with Taiwan’s revised entity reporting changes opens with filings for 2026 income (fiscal year 114). Preparation now will help minimize errors and maximize benefits.