Tax Procedures Further Simplified for Free Trade Zone Goods

       Under a recent decision by the Free Trade Zone Coordinating Committee of the Executive Yuan, taxed goods (including imported goods on which duties have been paid and non-bonded domestically produced goods) that are shipped into FTZs and then shipped back to tax-liable areas in their original form within three years will be exempt from customs duties. This will avoid double taxation, and will simplify operating procedures.

　　The Coordinating Committee also resolved that when goods are shipped from FTZs into tax-liable areas, customs duties should be levied on them according to the regulations on imported goods. For goods that undergo processing or production in FTZs, however, the value added in the FTZ should be deducted before duties are levied. This measure will encourage FTZ enterprises to build supply chains in connection with domestic industries, and will boost the willingness of entrepreneurs to move into the zones.

　　Another resolution by the Coordinating Committee was that goods, machinery, and equipment shipped from tax-liable areas into FTZs by FTZ enterprises for operational purposes will be viewed the same as export goods for which tax reductions, exemptions, or rebates may be applied in accordance with the relevant laws and regulations.

　　The related ministries and commissions will, in the future, continue working to simplify procedures for applications for monthly reporting, annual inventory, and certification by CPAs; to adjust harbor service fees; and the exemption of non-manufacturing FTZ enterprises from the need to obtain factory registration.
 
　　To learn more about the resolutions of the FTZ Coordinating Committee, please go online and visit this website: http://www/cedi/cepd/tw/index.php.?fPath=13_442.

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