Fri, Jan 12, 2018 - Page 4 News List

Cabinet to reward mobile payments with tax benefits

By Chen Wei-han  /  Staff reporter

The Cabinet has announced plans to increase the percentage of mobile payment service users to 90 percent by 2025, including offering cash rewards and tax benefits to people and businesses using mobile payment services.

To increase the availability of mobile payment options, the government is to introduce a mobile payment system on the Taoyuan Airport MRT line and at 80 percent of the nation’s medical centers and 610 gas stations nationwide this year, the National Development Council Deputy Minister Kao Shien-quey (高仙桂) said.

The government would also encourage 550,000 civil servants to make mobile payments when redeeming their National Travel Card — a payment card to which civil servants’ bonuses are disbursed — while working to increase the number of households paying electricity bills and water bills using mobile payments to 80,000.

The government is to introduce tax benefits to small businesses offering mobile payment options.

Shops that have monthly revenue lower than NT$200,000 would pay 1 percent tax, while shops earning more than that would need to pay a 5 percent tax.

Because shops making less than NT$200,000 are usually not required to give out receipts, they tend to refuse to offer mobile payment services to avoid tax inspections.

To increase mobile payment coverage, shops are to be eligible for the 1 percent tax rate for three years even if they make more than NT$200,000 per month, provided that they offer mobile payment services, the Cabinet said.

In a bid to phase out paper receipts, the number of special prizes for the electronic receipt lottery is to be increased.

The number of NT$1 million (US$33,872) prizes is to be raised from 15 last year to 30 this year and the number of NT$2,000 prizes is to be raised from 10,000 last year to 16,000 this year, the Ministry of Finance said.

Premier William Lai (賴清德) has instructed the Cabinet to devise more incentives to promote mobile payment and the Ministry of Economic Affairs said it would study the possibility of waiving processing fees for people paying utility bills with mobile devices, Deputy Minister of Economic Affairs Wang Mei-hua (王美花) said.

Mobile payments were introduced to the government tax collection system last year and taxpayers were offered NT$50 if they used mobile payment, Deputy Minister of Finance Wu Tzu-hsin (吳自心) said, adding that the finance ministry would introduce new incentives such as a lottery.

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