2014-10-14 16:26:34

According to Article 42 of The Enforcement Rules of Value-added and Non-value-added Business Tax Act, the amount of the tax refundable is limited to the amount calculated by applying the 5% business tax rate on the zero-tax rate sales income. The related refundable VAT calculation is illustrated below: Illustration: A：（VAT input NTD1,000 ＋VAT Credit NTD500）－ VAT output NTD1,200 = NTD300 B 1：（ “0%”Qualified Sales Income NTD10,000 × 5％）= NTD500。 B2: ( “0%”Qualified Sales Income NTD5,000 × 5％)= NTD150 B1 〉A, refundable VAT is NTD 300 B2〈 A, refundable VAT is NTD 150, balance of VAT NTD150 will become VAT credit carried forward. For services relating to export or services provided in Taiwan but used overseas, the related documentary evidence of payment received, inward remittance, foreign exchange and sales transaction should be obtained. For Research and Development Centers in Taiwan providing the result of their R&D work to a foreign country, after obtaining the income from the foreign source, zero business income tax rate is applicable. One important criteria for the zero tax rate to be applicable in the service industry is “services provided in Taiwan but used overseas.”