Newsletter
BUSINESS TAX TO BE PAY-ABLE AT TIME OF IMPORT
According to Article 41 Paragraph 2 of the Business Tax Law, goods imported for business use, other than small passenger automobiles, are not liable for business tax at the time of impor-tation. Therefore, under the current value-added business tax system, business tax is not levied on such imports at the time of importation, but only at the time of their subsequent sale.
However, on 6 December 2000 the Executive Yuan approved a draft amendment to the Busi-ness Tax Law so that all imports would be taxed at the time of importation. If the amendment is passed into law, it will bring forward the tax point for imported goods from the time of sale, as at present, to the time of importation. This will tie up importers' cash flow.