5% business tax rebates for foreign visitors effective today

Taipei, Oct. 1, 2003 (CENS)--Beginning today, inbound foreign tourists will be allowed to apply for 5% business tax returns after they purchase the products subject to the tax rebate regulations announced by the government.

Under the rules, the products purchased should be portable goods for daily living use, but excluding those not allowed to be carried on aircraft or ships for security reasons. In addition, the products that can be fully consumed by foreign tourists during their stay in Taiwan are also excluded. Furthermore, the products that can be for commercial use, such as, IC chips, batteries, films, and electronic parts, are not eligible for tax return.

Any visitors on the island holding passports, travel documents or valid entry-exit passes not issued by Taiwan government authorities are eligible for the tax rebate system, including those from Hong Kong, Macao, and mainland China. Moreover, the qualified visitors who want to get the 5% tax back should at least NT$3,000 (US$88 at US$1=NT$34) worth of the 'products' at any of the approved shops or stores, and will carry their purchased 'products' out of the island within 30 days.

Among the approved shops or stores are Pacific SOGO Department Store, Shin-Kong Mitsukoshi Department Store, Breeze Center, and Core Pacific City.

With the implementation of the new tax rebate measure, the Ministry of Finance estimated that the tax rebate value would amount to NT$600-800 million (US$17.7-23.5 million) per year.