Taiwan tempts tourists with tax refund scheme

Print Article E-Mail Article

The Taiwanese government has decided to enact the proposal put forward two months ago that tourists be exempted from the 5% business tax on purchases made in the country's stores.

The Taiwanese government has decided to enact the proposal put forward two months ago that tourists be exempted from the 5% business tax on purchases made in the country's stores. The move, which excludes purchases of electrical components, some consumables and large volumes of goods, is anticipated to cost the government over NT$600m ($17.9m) each year, but it is hoped will encourage greater numbers of visitors to the region.

Tourists will be eligible for the tax refund on departure only if they have made purchases of over NT$3,000 ($89.63) in the same store, a government official told local media yesterday. The scheme will begin on October 1.

At the same time, the government issued new advice to store operators seeking duty-free status, stressing that tax returns for at least two year needed to be certified by a public accountant, and that the company's capital must exceed NT$10m ($298,775) with no history of tax owed or tax evasion in the last three years.