Taiwan: Guidance on foreign currency gains and losses, earnings declarations

Guidance issued by the National Taxation Bureau

The National Taxation Bureau recently issued the following tax-related guidance:

Unrealized exchange gains or losses from year-end foreign currency valuations must be excluded from profit-seeking enterprise income tax returns. Only realized amounts are deductible under Articles 29 and 98 of the relevant regulations.
Companies may use current-year surplus earnings to offset past losses when declaring undistributed earnings, including losses incurred before 1997. This addresses misconceptions about the scope of offsets under the 1998 declaration requirements.

For more information, contact a KPMG tax professional in Taiwan:

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Taiwan: Guidance on foreign currency gains and losses, earnings declarations

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