What are the taxes on small restaurant business?

[feropont]

We moving from Vendor type of business to middle size restaurant type.

Anybody knows what are the taxes on restaurant business?

[ichbinjenny]

Your accountant should be able to answer this question.

[nomade75]

5 % of Monthly recorded sales bi-monthly basis
Then once a year on your recorded profit.. according to your bracket..20 % .. ish

[micheleru]

Hi everybody,
hope you went to an accountant to get detailed info, by the way this is what I got for a "xiaochi dian", that translated sounds like "tavern", if this is the kind of business that you want to start:
- Every 3 months have to present a tax return and pay an amount, that will depend on your turnover, my accountant says this amount can be the range of 2000-3000 ntd, so between 8k and 12k ntd/year;
- Every 6 months there will be another tax return to be presented where you will pay different % according to the following rates:
0 - 250.000 ntd 5%
250.000 - 555.000 ntd 12%
555.000 -1110.000 ntd 20%
1110.000 -2260.000 ntd 30%
over 2.260.000 ntd 40%
to close the company a fine of 5000 ntd will be applied

Hire employee:
training period: up to 3 months in the while you can dismiss whenever you want your employee
part time contract: 103 ntd/hour up to 12 h/day
full time: minimum salary 18.780 ntd/month for 8h/day and 48h/week
More 18% of the salary you have to pay for taxes (health insurance and pension)

I would like also to know which is the max number of seats allowed for a xiaochi dian. My accountant says that there is no limit, but this sounds really crazy to me, because if this be true no one will ask for a restaurant license which is much more complicated and expansive. Pls help me cause I want to open soon and I need confirm on this important matter!
Thank you

[micheleru]

also check this:
http://law.moj.gov.tw/Eng/LawClass/LawA ... e=N0030001

[TainanCowboy]

- Every 3 months have to present a tax return and pay an amount, that will depend on your turnover, my accountant says this amount can be the range of 2000-3000 ntd, so between 8k and 12k ntd/year;
- Every 6 months there will be another tax return to be presented where you will pay different % according to the following rates:
0 - 250.000 ntd 5%
250.000 - 555.000 ntd 12%
555.000 -1110.000 ntd 20%
1110.000 -2260.000 ntd 30%
over 2.260.000 ntd 40%
to close the company a fine of 5000 ntd will be applied

Heysus Christos!....no wnder everybody keeps a "second" set of books here.
Those rates are ridiculous. This crazy scale just begs for under/false reporting.....idiots..

[micheleru]

Hi Tainancowboy,
this is what I got from my accountant, if you have further knowledge or are experienced in this kind of business, you are more than welcome to share.
I really would like to have confirm or a denial about that.
thanks

[Puppet]

- Every 6 months there will be another tax return to be presented where you will pay different % according to the following rates:
0 - 250.000 ntd 5%
250.000 - 555.000 ntd 12%
555.000 -1110.000 ntd 20%
1110.000 -2260.000 ntd 30%
over 2.260.000 ntd 40%
to close the company a fine of 5000 ntd will be applied

I assume that is on profit, not sales?

[micheleru]

Yes, it's on the profit less the income tax.
Example: your REVENUE is 2.000.000 nt/year;
your COST is 1.000.000 nt/year;
the profit : 2.000.000 - 1.000.000 = 1.000.000 nt/year.
On the profit you pay the income tax (17%). Then you get: 1.000.000-170.000 = 830.000 nt;
According to the range above, your taxation will be the 20% of 830.000 = 166.000 nt;
What's left in your pocket at the end of the year, the NET is 830.000 - 166.000 = 664.000 nt
NOTE:
1-under the voice "COST" you can insert staff, rent, purchase of machinery, tools, payments, taxi etc...
2-this taxation is applied when you stay more than 183 days/year in Taiwan. Then you are treated exactly like a taiwanse (of course owning your regular ARC).
It's a "resident taxation".
If you are not resident in Taiwan, then you have an extra 20% to pay. In this case you should pay the 40% of 830.000 (much heavier..)
830.000 - 332.000 = 498.000 nt. But pls check this second point with an accountant.
Hope this can help

[Puppet]

It helps a lot. I am doing a business plan now, so I don't need it as an exact science yet. Once I am done, I'll have someone more knowledgable check it out.