2010-08-27 11:57:06

On 28th, the Executive Yuan passed the proposal by the Ministry of Finance to amend the Value Added and Non-Value Added Business Tax Act paragraph 1 of Article 7. The amendment augmented the purchase of specific goods or services eligible for Value Added Tax (VAT) by foreign enterprises, institutions, organizations or associations which has no permanent business establishment within the territory of the ROC for the purpose of engaging in exhibitions or temporary business activities that meet the particular requirements are qualified for tax refund (on the basis of reciprocal treatment). If the accumulated consumption amount reached TWD 200,000 to about TWD 400,000 within one year, foreign companies which has no permanent business establishment within the territory of the ROC purchases the goods or services qualified for sales tax for the purpose of engaging in exhibitions, business trips, investigation of market conditions, market research, generation of business, marketing seminars and other temporary business activities in Taiwan maybe eligible for tax refund. This tax refund measure is limited to foreign countries where the government also provided Taiwanese business entities the reciprocal tax refund treatment. The German Federal Financial Department has agreed to give Taiwanese business entities the VAT tax refund with rebate rate of 19% of the value of goods or services. South Korea as example, sales tax amount has to reach the equivalent of NT 8,190. Whereas for Germany, sales tax has to reach 1,000 or 500 Euros in order to qualify for tax refund.