Taiwan MOF Clarifies Nonapplication of Zero Business Tax Rate to Specific Import Facilitation Commissions

The Taiwanese Ministry of Finance Aug. 20 clarified the nonapplication of the zero business tax rate to the commissions and service charges of businesses facilitating domestic companies in importing raw materials or equipment from nonresident suppliers. The clarification includes that: 1) the zero rate doesn’t apply if the location and use of the services are within Taiwanese territory, and if the purchasing business is outside a bonded area and unrelated to export services, even if the nonresident manufacturer provides documentation evidencing payment; 2) businesses facilitating such imports must therefore issue taxable unified invoices and pay business tax; and 3) if ...