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CONTRIBUTION OF EQUIPMENT AS CAPITAL IS SALE OF GOODS AND ISSUANCE OF GOVERNMENT UNIFORM INVOICE IS REQUIRED


Josephine Peng/Leo Tsai

The Ministry of Finance issued a tax ruling on January 23, 2009, which states that a transaction where a company contributes its equipment as the consideration for subscribing shares newly issued by a Taiwan or foreign company is a sale of goods, and that the market value of the equipment or the market value of the newly issued shares, whichever is higher, should be deemed the sale price, for which the investing company should issue a government uniform invoice and pay business tax in accordance with the regulations. 

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