Q1：What is the penalty if an offshore electronic services business entity  fails to apply for taxation registration?
A1：An offshore electronic services business entity failing to apply for taxation registration in accordance with the regulation, in addition to being ordered to comply with the requirements within a specified time limit, may be penalized with an administrative fine of no less than NT$3,000 and no more than NT$30,000. In case of a failure in compliance with the requirements within the specified time limit, the  offshore electronic services business entity may be penalized consecutively for each violation according to the regulation. Where the  offshore electronic services business entity  evades taxes, it shall be pursued for payment of taxes owed and be fined no more than five times the amount of tax evaded, and the operation of its business may be suspended.

Q2：What is the penalty if an offshore electronic services business entity  fails to comply with the rules to apply for an modifications of registration, cancellation of registration, temporary suspension of business, resumption of business, or makes false statements in the registration?
A2：In addition to being notified to make corrections or to comply with the requirements within a specified time limit, an offshore electronic services business entity will also be fined no less than NT$1,500 and no more than NT$15,000. Failure to comply with the requirements within the specified time limit may result in consecutive penalties for each violation until compliance is met according to the relevant laws and regulations. Where an offshore electronic services business entity  evades tax, it shall be pursued for payment of taxes owed and be fined no more than five times the amount of tax evaded, and the operation of its business may be suspended.

Q3：What is the penalty if the sales amount is under-reported or not reported at all by an offshore electronic services business entity ?
A3：An offshore electronic services business entity  shall be pursued for payment of taxes owed and be fined no more than five times the amount of tax evaded, and its operation of business may be suspended.

Q4：What is the penalty if the tax-filing agent of an offshore electronic services business entity  fails to file a VAT return and pay the VAT within the time limit?
A4：The tax-filing agent of an offshore electronic services business entity  approved to handle tax matters by the competent tax authority but failing to file a VAT return and pay the VAT shall be fined no less than NT$3,000 and no more than NT$30,000.

Q5：What is the penalty if an offshore electronic services business entity  selling cross-border electronic services fails to file a VAT return within the time limit?
A5：There are various ranges of fine according to the number of belated filing days, as follows:

unit：NTD

Types of fine		Surcharge for belated filing: no more than 30 days past due	Non-filing surcharge: excess of 30 days past due
With tax payable	Calcu- lation	equivalent to 1% of the tax payable for every two days overdue	equivalent to 30% of the tax payable, as determined by the competent tax authority
	Limit	no less than NT$1,200 and no more than NT$12,000	no less than NT$3,000 and no more than NT$30,000
Without tax payable		NT$1,200	NT$3,000

Q6：What kind of remedial measures will be taken by the competent tax authority if an offshore electronic services business entity fails to pay VAT within the time limit?

A6：An offshore electronic services business entity  failing to pay VAT within the time limit shall be subject to a 1% surcharge on late payment for every three days in arrears, starting from the day immediately following the date the time limit expires. If the payment is not met thirty days after the time limit, the competent tax authority may, in addition to referring the case to the court for compulsory execution, suspend its business operation and initiate remedial measures, as follows:
1.The tax collection authorities may notify the government authorities concerned to prohibit said taxpayer from transferring or creating other rights over the property of the taxpayer at a value equivalent to the amount of the outstanding tax payable, and may notify the competent authorities to prohibit said taxpayer from reducing its capital or applying for the cancellation of its registration.
2.If an offshore electronic services business entity shows signs of intending to conceal or transfer its property or to evade tax, the tax collection authorities may apply to the court for a provisional seizure of its property.