Income Tax Act Article 75

A profit-seeking enterprise shall make its current final income tax return up to the date of dissolution, closure, merger, or ownership transfer, and then its total business income and tax payable on a prescribed form to the competent tax authority within forty-five days, and further make payment before filing the income tax return.A profit-seeking enterprise shall report any income derived from liquidation during the period of liquidation on a prescribed form to the competent tax authority within thirty days from the date of completion of liquidation, and the taxpayer shall, before filing its tax return, make payment at the prescribed profit-seeking enterprise income tax rate in the taxable year. However, this is not applicable to those enterprises which are exempt from the liquidation process in accordance with other laws.The term "period of liquidation" as referred to in the preceding paragraph for the company organization shall be the time limit in accordance with the Company Act; for the limited partnership organization it shall be the time limit in accordance with the Limited Partnership Act; and for others it shall be three months from the date of dissolution, closure, merger, or ownership transfer.A profit-seeking enterprise organized as a sole proprietorship or a partnership shall make its current final income tax return or liquidation income tax return according to Paragraphs 1 and 2 and be exempt from computing and making a tax payment before filing its income tax return. The amount of income of a profit-seeking enterprise shall be included in “Income from profit-seeking activities” as defined in Category 1, Paragraph 1 of Article 14, and the individual income tax shall be levied in accordance with this Act. However, the sole proprietorship or a partnership which is assessed as a small-scale profit-seeking enterprise shall not make its current final income tax return or liquidation income tax return. The tax authority shall assess the amount of profit-seeking enterprise income and incorporate the income into its sole proprietor’s or partners’ “Income from profit-seeking activities” and levy individual income tax in accordance with this ActIn the case of failure to submit a current final income tax return or liquidation income tax return within the time limit as provided in Paragraphs 1 and 2, the tax authority shall assess and determine the amount of business income and tax payable; if a profit-seeking enterprise is organized as a sole proprietorship or a partnership, the tax authority shall assess its taxable income, incorporate the income into its sole proprietor’s or partners’ “Income from profit-seeking activities” and levy individual income tax in accordance with this Act.In the event of bankruptcy, a profit-seeking enterprise shall, within ten days prior to the time limit prescribed for credit filing announced by the court, file its current final income tax return with the competent tax authority. In the case of failure to file a tax return within the time limit, the tax authority shall assess and determine its amount of business income and tax payable immediately according to the finding made by itself.The court shall, at the same time of announcement of credit filing, notify the local tax authority of the bankruptcy declared on the profit-seeking enterprise in the preceding paragraph.