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Tax Reserve Certificate

In order to avoid not having enough funds to pay taxes on the due date of payment, the Inland Revenue Department will encourage taxpayers to purchase tax reserve certificates to pay taxes through tax savings plans. If the taxpayer participates in the plan, the tax bureau will automatically redeem the tax reserve certificates for the taxpayer on the tax due date. Tax reserve certificates can only be used to pay the taxpayer’s own taxes, and interest on savings will only be paid when the tax is paid. If a taxpayer wants to get back the principal of the tax reserve certificate, no interest will be paid.

In addition, when the tax bureau receives an objection from a taxpayer to a tax assessment notice, it will consider issuing an unconditional or conditional suspension of payment order for the tax in dispute. Before the taxpayer can reach an agreement with the Inland Revenue Department, he may not be willing to pay in full according to the original tax assessment. In this case, the tax bureau may require taxpayers to purchase tax reserve certificates in accordance with the specified amount. If the taxpayer wins the objection, the tax bureau will refund the overpaid tax and the savings interest that is part of the overpaid tax.

The above information is for reference only. If in doubt, we welcome your tax inquiries

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