2011-04-22 14:44:30

According to Act for the Establishment and Management of Free Trade Zones & International Airport Park Development Act which were enacted in 2009, a foreign company or a branch company in R.O.C. which stores products and executes a simple process in the Free Trade Zone (FTZ)1 shall be exempted from business income tax. Under the circumstances that the annual domestic sales exceed 10% of the total of annual sales, the tax payer is liable to pay business income tax on the exceeded domestic sales. 1. The Free Trade Zone (FTZ) refers to an area or an adjacent area which is located within or is demarcated as a controlled district under the approval of the Executive Yuan. FTZ is established for the purpose of managing domestic and foreign business activities which the comprehensive goods tracking system can be connected with the controlled district by means of technological facilities.