Enforcement Rules of Value-added and Non-value-added Business Tax Act Article 24

With respect to a business entity subject to business tax calculation under Section 1 of Chapter 4 of the Act, the sales amount for security deposits it receives from the leasing out of property shall be calculated on a monthly basis, provided that for any term of lease of less than a full month, the sales amount need not be calculated. The formula for calculation is as follows:Sales amount＝ Fixed interest rate for a one-year postal time deposit as announced on 1 January of the lease year ÷ 12Security deposit × ───────────────────────────── 1 ＋Applicable tax rateWith respect to a business entity subject to calculation of business tax under Section 2 of Chapter 4 of the Act, the sales amount for security deposits it receives from the leasing out of property shall be calculated on a monthly basis, provided that for any term of lease of less than a full month, the sales amount need not be calculated. The formula for calculation is as follows:Sales amount = Security deposit × Fixed interest rate for a one-year postal time deposit as announced on 1 January of the lease year ÷12