Taiwan's Export Tax Refund Policy

In order to expand foreign trade exports, develop export-oriented economy, and strengthen the management of export tax rebates, the Taiwan authorities amended the “Measures for Refunding Exported Goods to Materials” (hereinafter referred to as “Taiwan Export Tax Rebate Measures”) in July 1977. The main contents are:

(1) Scope of Application of Export Tax Rebates The first paragraph of Article 7 of the "Business Tax Law" in Taiwan stipulates that the applicable tax rate for export goods is zero, and the export tax refund measures have been stipulated in the "Business Tax Law" in detail. Therefore, Taiwan Export Tax Rebates The Measures stipulate that the scope of export tax rebates shall be limited to four kinds of taxes: import tariffs, commercial port construction fees, excise taxes, and slaughter taxes. The specific content is: All products in Taiwan have been exported, and the foreign exchange will be based on the "Management of Foreign Exchange Law." Selling or depositing funds to banks designated by the Taiwan authorities and exporting manufacturers may apply for export tax refunds. Selling goods to agencies and individuals enjoying diplomatic treatment in Taiwan and having foreign exchange earnings or other special circumstances that may be tax refunded by the Taiwan Ministry of Finance is also treated as export processing, if the foreign exchange earnings from exports are lower than the total value of export raw materials , the export tax refund application will not be accepted, but there are four exceptions:

(1) The offshore price of the finished product for export shall not be lower than the offshore price of the raw material used at the time of export, and shall not be lower than the price of the same-quality goods of other manufacturers in the same area;

(2) The foreign exchange regulatory authority of the Taiwan authorities has proved that there is a foreign exchange income, which in total makes the actual FOB price of the finished product higher than the FOB price of the raw materials used;

(3) Due to defects in the previous batch of export goods, the buyers and sellers agreed that the goods will be sold at a lower price later or agreed to be deducted from the FOB price of the goods, resulting in understatement and approval by the Taiwan Trade Authorities;

(4) Other special circumstances were approved by the Ministry of Finance of Taiwan's Ministry of Commerce and Economy. Exporting manufacturers shall submit the relevant export certification for export tax refunds within six months of the original date from the date of inception. Overdue payment will not be accepted (but if the import certificate is exempted from inspection in accordance with regulations, tax refunds shall be filed within six months after export). Exported goods have been shipped back to Taiwan for export reasons and are exempted from imported product tax and excise tax. However, raw material tax refunds that have been returned at the time of export are still subject to the original amount.

(II) Export Tax Rebate Measures According to the “Taiwan Export Tax Rebate Measures”, Taiwan’s export tax rebates are classified as fixed tax refunds and fixed rate tax refunds. When the main materials are exported from finished products, the amount of raw materials required shall be used to recover the tax refund; At the time of export of finished products, the tax rebate shall be approved at the export price, and the tax shall be calculated according to the proportions of the national tax and the local tax. Any refundable tax calculated in accordance with this provision, if it falls below the ratio or amount specified by the Ministry of Finance of Taiwan, will not be returned. The fixed tax rebate and fixed rate tax refund shall be implemented by the “Fixed, Fixed Rate Tax Return” formulated by the Ministry of Finance of Taiwan according to the following provisions; (1) Fixed tax refund. According to the raw material withdrawal criteria stipulated by the Ministry of Economic Affairs of Taiwan, the average refundable price of each unit of exported goods is determined first according to the average export duty-paid price, and the “Formula Tax Return Form” is established. The formula is: fixed rate tax refund rate = average import duty paid price Tax rate per unit of material used. (2) Fixed rate tax refund. Calculate the average FOB price per unit of export goods according to the raw material nuclear retreat standard of Huaihe and Customs by the Ministry of Economic Affairs of Taiwan, and calculate the average refundable price per unit of exported goods, and calculate the ad valorem tax rebate for exported goods. Amount, enter into the "fixed rate tax return", the calculation formula is: ad valorem tax rebate rate = (category product within a certain period of time the total amount of export tax rebate / category of a certain number of finished products within a certain period of export) (category products within a certain period of time to export the total amount of F0B finished products The total number of exports within a certain period of time) F0B price per finished product export. In addition, export goods subject to fixed or fixed tax rebate, if the basic raw material used in Taiwan can be produced and the quantity is sufficient to meet the needs of the island, and can be fully supplied at an agreed price, and the quality meets the requirements, the most basic raw materials must be produced in Taiwan. In order to calculate the standards, procedures for exempting inspection vouchers shall be implemented. The project shall be specifically agreed by the Ministry of Finance and the Ministry of Economic Affairs. At the same time, if the basic raw materials used for export goods are tax-free or domestically sold, such as the manufacturer's re-importation of intermediate products or substitutes thereof that can be made of the basic raw materials, the Ministry of Finance of Taiwan and the Ministry of Economic Affairs shall, depending on the actual situation, reduce the intermediate raw materials or their substitutes. The tax rebate for supplies is not refundable. If an exporter meets the conditions stipulated by the Ministry of Finance of Taiwan, and if it deems it appropriate, after an average loss-free period in the same period of inspection, there is no record of violation of taxes and regulations, and there was a loss in previous years but it has been made up, the raw material tax for export goods will be granted to export manufacturers. Report by yourself.

(III) Anti-fraud Measures In order to prevent unscrupulous manufacturers from fraudulently using fraudulent means to defraud export tax refunds, the Taiwan authorities have stipulated that booked export goods taxable materials cannot be written off within the prescribed time limit, and should immediately pay back the tax amount, on a daily basis. Five-tenths of late fees will be added. If the import of raw materials or their products is not sold domestically without paying taxes, depending on the seriousness of the circumstances, the export credits will be stopped, the export verification will be granted, and the preferential treatment of the taxation of raw materials will be stopped.