FAQ for the Taiwan Business Tax (5)-Company Formation_Trademark Registration_Tax Service - Hong Kong CPA

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Taxation - Taiwan

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FAQ for the Taiwan Business Tax (5)

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What are the goods or services that applicable to the zero tax rate in Taiwan?

Exported goods.
Services relating to export or services provided in the R.O.C. but used in a foreign country.
Goods sold to outbound or transit passengers by duty-free shops established under applicable law.
Goods or services sold to a bonded zone business entity for its operational use.
International transportation; however, foreign transport enterprises engaging in international transport within the territory of the R.O.C. shall qualify for the zero tax rate only if reciprocal treatment, or exemption from similar taxes, is given to international transport enterprises of the R.O.C. by the foreign country in which the foreign enterprise is incorporated.
Vessels and aircraft used in international transportation and deep sea fishing boats.
Sales of goods and maintenance services to vessels and aircraft used for international transportation and deep sea fishing boats.
Goods sold by a bonded zone business entity to a taxable zone business entity and exported directly without being transported to the taxable zone.
Goods sold by a bonded zone business entity to a taxable zone business entity for export and placed in a bonded warehouse or logistics center administered by an enterprise inside a free trade zone or by Customs.

A business entity in Taiwan who sells the goods that exempt of business tax according to the law, could them give up the tax exemption system and become taxable?

Yes, the business entity which sells the exempt goods or services may apply to the Ministry of Finance to waive the exemption and compute its business tax according to the Value-added and Non-value-added Business Tax Act. However, once approved, no changes may be made within three years.

Which goods can be exempted from business tax when imported in Taiwan?

The importation of any of the following goods is exempted from the business tax:

(1)	Vessels and aircraft used in international transportation and deep sea fishing boats, fertilizer, gold bars, gold bricks, gold foil, gold coins and gold ornaments.
(2)	The goods specified in Article 49 of the Customs Act, provided, however, that in case of transfer of ownership or change in purpose of use that results in supplementary payment of customs duties under Article 55 of the Customs Act, the business tax so exempted shall become due and payable.
(3)	National antiques.

In the case of dealing with an extraordinary economic situation, or a situation to accommodate the supply of goods, the Executive Yuan may make an adjustment in business tax on imported wheat, barley, corn and soy beans.

If there are sales of goods or services between a business person and non-business person, if there is sales return or allowances, how to fill out the certificate of sales return, returns of goods or discount?

The sales of goods or services between business person and non-business person, if there is sales return or allowances, the purchaser should chop or sign on the certificate when they show the certificate of sales return, the return of goods or discount, and the purchaser does not need to fill in their National ID Card Number.

A Taiwan business person bought a passenger car for personal use, could they exempt from business tax when they selling the passenger car?

The Taiwan business person that bought a passenger car for personal use, they should issue the uniform invoice and declare for the business tax when they sell the passenger cars in the future.

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