How are Taiwan import taxes calculated? Formula, tax base and worked example
What is the answer? Start with the conclusion
Taiwan import taxes and fees must be calculated in sequence, not by applying a single combined rate to the merchandise price. First determine the customs value, or dutiable value (DPV), under the Customs Act. Ad valorem duty = DPV × the applicable 11-digit CCC tariff rate. Ad valorem commodity tax = (DPV + import duty) × the applicable rate. Taiwan VAT = (DPV + import duty + any applicable commodity tax or Tobacco and Alcohol Tax + Tobacco Health and Welfare Surcharge) × 5%. The Trade Promotion Service Fee = DPV × 0.04%, but no fee is collected when the amount payable or additionally payable is no more than NT$100. If DPV is NT$10,000, the ad valorem duty rate is 5%, and no other taxes apply, import duty is NT$500, Taiwan VAT is NT$525, the NT$4 Trade Promotion Service Fee is exempt, and the total is NT$1,025. DPV is not always simply the merchandise price plus freight and insurance: under Article 29 of the Customs Act, the transaction value must be adjusted for commissions, packing, buyer assists, royalties, subsequent proceeds, and freight and insurance. Only a straightforward FOB transaction with no other adjustments may be simplified as FOB + freight + insurance.
How is import duty calculated? What are the core formula and example?
If DPV is NT$10,000, the ad valorem duty rate is 5%, and no commodity tax or Tobacco and Alcohol Tax applies: import duty is NT$500; Taiwan VAT is (10,000 + 500) × 5% = NT$525; the Trade Promotion Service Fee is NT$4 and is exempt because it is no more than NT$100; total taxes and fees are NT$1,025. This is a simplified example; the actual result still depends on the 11-digit CCC code and product-specific rules.
| Ad valorem duty | DPV × the applicable 11-digit CCC tariff rate |
|---|---|
| Ad valorem commodity tax | (DPV + import duty) × the applicable commodity tax rate |
| Taiwan VAT | (DPV + import duty + applicable commodity tax or Tobacco and Alcohol Tax + Tobacco Health and Welfare Surcharge) × 5% |
| Trade Promotion Service Fee | DPV × 0.04%; no fee is collected when the amount payable or additionally payable is no more than NT$100 |
| Exchange rate | Use the ten-day exchange rate applicable on the declaration date; if the midpoint of a ten-day period falls on a holiday, move to the preceding business day, and use the Bank of Taiwan selling rate for imports. |
Sources: Customs Administration, Ministry of Finance — Taxes and Fees Payable on Imported Goods (2026-07-13) · Customs Administration, Ministry of Finance — How Customs Levies Taiwan VAT on Imported Goods (2026-07-09) · International Trade Administration, Ministry of Economic Affairs — Trade Promotion Service Fee FAQ
Why is customs value not always equal to the merchandise price plus freight?
Article 29 of the Customs Act starts with the transaction value and prescribes six categories of additions as well as items that may be excluded. FOB + freight + insurance is a valid simplification only when the starting point is FOB and there are no royalties, buyer assists, packing costs, or other adjustments.
Sources: Customs Act (amended 2022-05-11) · Enforcement Rules of the Customs Act (amended 2024-12-23) · Customs Administration, Ministry of Finance — Valuation of Imported Goods (2026-07-03)
How do ad valorem duty, specific duty, and compound duty differ?
Ad valorem duty is DPV multiplied by the tariff rate; specific duty is the statutory quantity or weight multiplied by the unit amount; compound duty calculates both methods listed under the same tariff line and applies the higher result. Commodity tax may also be specific, so the same percentage formula cannot be applied to every product.
Sources: Customs Administration, Ministry of Finance — Taxes and Fees Payable on Imported Goods (2026-07-13) · Commodity Tax Act (amended 2025-12-30)
How are Taiwan import taxes and fees calculated? Follow these 5 steps in order
1Confirm lawful import eligibility and the 11-digit CCC code
First check whether the goods may lawfully be exported from China and imported into Taiwan, including any BSMI, NCC, food, or other inspection and approval requirements. Lawful import eligibility takes priority over the tariff rate; then use the complete 11-digit CCC code to determine the applicable import duty.
2Determine the customs value
Start with the transaction value; under Article 29 of the Customs Act, add objectively measurable commissions, packing costs, buyer assists, royalties, subsequent proceeds, freight, and insurance, and exclude separately identifiable post-import costs.
3Calculate import duty and other taxes and fees
For ad valorem duty, use DPV × the rate. Calculate specific duty and compound duty separately under the tariff schedule. If the item is subject to commodity tax, Tobacco and Alcohol Tax, or the Tobacco Health and Welfare Surcharge, calculate those amounts under the applicable statute.
4Calculate Taiwan VAT
Add DPV, import duty, and any applicable commodity tax or Tobacco and Alcohol Tax and Tobacco Health and Welfare Surcharge, then multiply by 5%; Customs collects Taiwan VAT upon importation.
5Check the Trade Promotion Service Fee and exemption conditions
The Trade Promotion Service Fee is DPV × 0.04%; no fee is collected when the amount payable or additionally payable is no more than NT$100. For the low-value exemption, also check shipment grouping, import frequency, and excluded goods.
Glossary
- DPV
- Dutiable value, meaning the customs value determined by Customs.
- Ad valorem duty
- Import duty calculated by multiplying the customs value by the tariff rate.
- Specific duty
- Import duty calculated by multiplying weight, volume, or another statutory quantity by the unit amount.
- Trade Promotion Service Fee
- A fee charged on imports at DPV × 0.04%; no fee is collected when the amount is no more than the statutory de minimis threshold.
Frequently asked questions
Is import duty simply the merchandise price multiplied by the tariff rate?
If the import duty rate is 0%, are no taxes payable?
Can I estimate the amount using an online shopping site's exchange rate?
regulatory basis
Customs Act (amended 2022-05-11) · Enforcement Rules of the Customs Act (amended 2024-12-23) · Value-Added and Non-Value-Added Business Tax Act (amended 2025-05-28) · Commodity Tax Act (amended 2025-12-30) · Customs Administration, Ministry of Finance — Import Declaration Exchange Rates (2026-07-03) · International Trade Administration, Ministry of Economic Affairs — Trade Promotion Service Fee FAQ · National Central Library — Yang Hsiao-yu, Study of Customs Valuation Disputes (2023)
Related questions
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