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BUSINESS ENTITIES IN AGRICULTURAL SCIENCE AND TECHNOLOGY PARK OR BONDED LOGISTICS CENTER MAY APPLY ZERO RATE BUSINESS TAX


Josephine Peng/Leo Tsai

The Ministry of Finance issued a ruling indicating that a business entity in a bonded zone refers to a business entity located in a science-based industrial park, a duty-free export processing zone, a free trade zone, or a bonded factory or a bonded warehouse supervised by the customs authorities, as well as a business entity located in an agricultural science and technology park or a bonded logistics center supervised by the customs authorities.

For the consistency of taxation on business entities in bonded zones, when a business entity located in an agricultural science and technology park or a bonded logistics center supervised by the customs authorities receives an order from a foreign customer, and at the customer's instructions delivers the bonded goods to another business entity in a taxable zone in Taiwan, and receives the payment in foreign currency, the business entity is eligible for the zero business tax rate like business entities in other bonded zones.

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