Rebates to be Reinstituted for Over 3,000 Export Items

In response to the global economic recession, the Ministry of Finance (MOF) has decided to reinstitute tax rebates on 3,036 export items as a means of reducing the tax burden on exporters and helping them to win overseas orders. The rebate threshold will also be lowered. This is the first time, since the government started a gradual cancellation of rebate incentives in 1984, that imported agricultural and industrial raw materials have been included in the scope of export rebates.
The MOF stresses that its recent move is undertaken in order to enliven exports in the face of the heavy impact of the global recession on Taiwan’s export industries. In the future, manufacturers with export orders in hand will be able to apply for tax rebates on imported goods that are re-exported within a year and a half, with no threshold or value restriction. The ratio of the rebates will depend on the export amount. For example, if imported goods have a taxable value of NT$100 and are taxed at a rate of 5%, and are completely exported within a year and a half, they can enjoy a tax rebate of NT$5; if the export ratio of the imported goods is 50%, the tax rebate will be NT$2.5.
The MOF also emphasizes that this reinstitution of export tax rebates is aimed primarily at agricultural and industrial raw materials, and that to avoid an adverse impact on domestic industries the export items actually affected will be determined following discussions between the Ministry of Economic Affairs and Council of Agriculture. As fast as possible completes the related operational procedure.

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