Local Tax Bureau of Taichung City Government said if the same contract contains the procurement and installation of equipment, the higher stamp tax rate of 1 ‰ shall apply.

Local Tax Bureau pointed out that according to the Stamp Tax Act, if the same document can be categorized under two types of document subject to the same tax rate, only tax stamps applicable to one type of document are required; if the same document is subject to different tax rates, the higher rate shall govern. Therefore, if the same contract covers both the purchase and installation of equipment, the higher rate of 1 ‰ shall apply on the total contract amount for the calculation of stamp tax. If the taxpayer affixes only NT$12 tax stamps for the deed of sale and purchase of moveable properties, he/she is required to pay the stamp tax at its full amount and shall be also penalized by a fine of 5 to 15 times of the stamp tax evaded.

Local Tax Bureau reminded the taxpayer who has affixed NT$12 tax stamps instead of 1 ‰ of the total contract amount on the above-mentioned contracts to make up for the deficiency as soon as possible to avoid punishment. If you want to learn more about relevant laws and regulations, please call toll-free phone 0800-086969 or 22585000 ext. 1 for the call center of Local Tax Bureau.