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COVID-1 9

Relief and Economic Stimulus Program for Businesses

Jay Lo Jay Lo 15 Jun 2021
Program Salary and Working Capital Subsidies Loan Repayment Postponed and Interest Subsidy Apply for Cash Refund on Carried Forward VAT Credit Tax Reduction (House Tax Assessment)
Subsidized Industry or Target Commercial Service
  • Manufacturing and related Technical Services
  • Convention Exhibition Industry
  • Trade Services
 Small and Medium Enterprise Needs to be an active VAT registrant as at January 15, 2020 As per announcement of each district/ city government office.
Application period 2021/6/7~2021/8/31 2021/6/7~2021/8/2 2021/6/7~2021/12/31 From Now till the Expiry Date of the Implementation Period of the Relief Regulations As per announcement of each district/ city government office.
Applicant qualification Decrease revenue by more than 50% in any month from May to July 2021 (Has valid tax registration) Enterprises that got ordered by the Government to suspend trading due to Covid 19. Decrease revenue by more than 50% in any month from April to June 2021 (Has valid tax registration) Turnover Decreased by 15%. Must have valid tax registration Has VAT credit balance and the application must be approved by the Central Government or there is evidence showing revenue has plummeted Use of business area has been reduced due to the suspension of business ordered by Government due to Covid 19.
Program highlight One time subsidy as follows: TWD 40,000 per full time employee.
  1. One time subsidy as follows: TWD 10,000 per full time employee earning less than the minimum wage.
  2. Subsidy to Employees’ Salary: One-Off Salary Subsidy of TWD 30,000 (An Additional TWD 10,000 of Living Allowance will be Issued By the Employment Fund
  1. Subsidizes 40% of Employees' Regular Salary, With a Monthly Cap of TWD 20,000 for up to 3 Months (April-June, 2021)
  2. One time operating subsidy as follows: TWD 10,000 per full time employee.
  1. Extend existing loan period (Borrowed amount remains unchanged)
  2. Working capital loan (up to TWD 6 million)
  3. Special loan for affected businesses (up to TWD 150 Million for SMEs; up to TWD 500 Million for Non-SMEs)
  1. Can apply for cash refund multiple times. The cumulative VAT refund amount cannot exceed TWD 300,000.
  2. Cannot apply for cash refund if VAT credit balance is currently used as a collateral for outstanding tax or tax penalty payment.
 The tax office has authority to automatically adjust tax assessments based on findings or based on application submitted from affected people. Tax rate can reduce from 3% to 2%.
Conditions
  1. Enterprise cannot suspend from trading or apply for de-registration.
  2. Need to keep number of resigned employees within prescribed limit.
  3. Cannot claim other Covid 19 relief / subsidy from the Government.
  1. Enterprise cannot suspend from trading or apply for de-registration.
  2. No Layoffs, No Pay Cuts or Reduce Working Hours(Unless this is carried out in cooperating with National Epidemic Prevention Policy)
  3. Cannot claim other Covid 19 relief/ subsidy from the Government.
     As per announcement of each district/ city government office.
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