Business tax rebates allowed for foreign visitors beginning October 1

Taipei, Sept. 10, 2003 (CENS)—To encourage foreigners to visit Taiwan for sightseeing and shopping, the Ministry of Finance (MOF) recently announced that foreign visitors could apply for business tax returns after they purchase 'specific products' during their stay on the island.

The new measure will be effective starting October 1. The "specific products" will include any products for daily living use and those taxable products allowed to be taken out of the island, but excluding those not allowed to be carried on aircraft or ships for security reasons.

MOF indicated that most advanced nations in the world have already adopted either the tax rebate or duty free system to benefit inbound tourists. In order to follow the world trend and attain the government's goal of doubling the number of inbound foreign tourists in 2008, the MOF has collaborated with the Ministry of Transportation and Communications (MOTC) to jointly unveil the measures.

A ranking official of the Taxation Agency under the MOF interpreted that any visitors to the island holding passports, travel documents or valid entry-exit passes not issued by Taiwan government authorities are eligible for the tax rebate system. Such foreign visitors are allowed to apply for business tax returns at customs counters at airports or seaports when they leave the island, if they have purchased the above-mentioned "specific products" valued at over NT$3,000 ( including tax) from any one of the government-approved shops or stores on the same day. The purchased products should be carried out of the island by the visitors within 30 days.

The qualified shops or stores should meet the following requirements:

--Each shop or store should have a minimum paid-in capital of NT$10 million (around US$294,000);

--No records of tax evasions or tax arrears over the past three years, and

--With audited certificates issued by certified public accountants on tax reports in last two years.