A profit-seeking enterprise shall make its current final report up to the date of dissolution, closure, amalgamation or ownership transfer, and then its total business income and taxable amount on a prescribed form to the tax collection authority-in-charge within forty-five days, and further make payment voluntarily before filing the income tax return.
Any income earned from liquidation during the period of liquidation shall be reported on a prescribed form to the tax collection authority-in-charge within thirty days from the date of completion of liquidation, and the taxpayer shall, before filing his tax return, make payment voluntarily at the prescribed rates applicable to the profit-seeking enterprise in the taxable year. But this is not applicable to those enterprises which are exempt from the liquidation process in accordance with other acts.
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 shall be the time limit in accordance with the Limited Partnership Act; and for others shall be three months from the date of dissolution, closure, amalgamation, or ownership transfer.
A profit-seeking enterprise organized as a sole proprietorship or a partnership shall make its current final report or liquidation income report in accordance with 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 “Business Income” as defined in Category 1, Paragraph 1 of Article 14, and the consolidated income tax shall be levied in accordance with this Act.
However, a sole proprietorship or a partnership recognized as a small-scale profit-seeking enterprise need not make its current final report or liquidation income report. The collection authority shall assess the amount of profit-seeking enterprise income and incorporate the income into its sole proprietor’s or partners’ consolidated income and levy consolidated income tax in accordance with this Act.
In the case of failure to submit a current final report or liquidation income report within the time limit as provided in Paragraphs 1 and 2, the collection 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 collection authority shall assess its taxable income, and incorporate the income into its sole proprietor’s or partners’ consolidated income and levy consolidated 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 business income tax return with the tax collection authority-in-charge. In the case of failure in filing tax return within the time limit, the collection authority shall assess and determine its amount of business income and taxable amount immediately according to the finding made by itself.
The court shall, at the same time of announcement of credit filing, notify the local collection authority of the bankruptcy declared on that profit-seeking enterprise.