Wed, Nov 24, 2004 - Page 10 News List

MOF mulls tax on online transactions

By Joyce Huang  /  STAFF REPORTER

Although the Ministry of Finance is mulling measures to charge a levy on online transactions, sales of household necessities through the Internet will remain tax-free, an official said yesterday.

"Upon proof provided by taxpayers, no taxes will be imposed on online sales of individual necessities," said Sheu Chun-an (許春安), an official from the ministry's taxation department.

"All capital gains including those made online should be taxed in accordance with the principle of tax fairness," Sheu said.

But the ministry's starting date for collecting tax from online transactions is still pending a feasible proposal from the National Tax Administration, Sheu said.

The proposal will detail tax regulations for online transactions and how comprehensive tax inspections will be carried out should tax evasion be discovered.

The ministry plans to hold several public hearings to review the plan before implementing it, he said. No precise timetable has been set for the launch, Sheu said.

Based on the current law, online businesses are required to register before launching so that business taxes and personal income taxes can later be levied, the official said.

However, individual online sellers, who infrequently make transactions, should file their capital gains in annual tax reports, unless the gains are from cars, houses and household necessities.

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