Regulations for Computing and Levying Commodity Tax for Central Air Conditioning Systems｜第 5 條｜賦稅｜Regulation｜In Force
財政部｜v1.0
Last Amended: 2023-03-24
When a manufacturer uses imported or domestically purchased air handling units or compressors for the assembly of refrigerating equipment that is not used for the production of central air conditioning systems, the air handling unit or compressor is exempted from commodity tax. The manufacturer shall follow the provisions below in the application for tax exemption or refund: 1. The manufacturer has obtained a certificate of purpose for the imported or domestically produced air handling units or compressors, from the competent authority: (1) Prior to purchase or assembly of the refrigerating equipment, if a manufacturer that has registered its factory or obtained a permit for factory establishment can provide documentation evidencing the definite purpose of the purchase, it may apply to the Industrial Development Bureau, Ministry of Economic Affairs for the issue of a proof document and use it to apply for tax-exempt import or factory release. (2) For air handling units or compressors imported for use in the assembly of refrigerating equipment for fishing boats, Customs will approve the exemption of commodity tax if a duty-exemption document issued by the Council of Agricultural, Executive Yuan is presented. (3) For air handling units or compressors imported for use in the assembly of refrigerating equipment by a shipyard, Customs will approve the exemption of commodity tax if a proof document issued by the Industrial Development Bureau, Ministry of Economic Affairs is presented. 2. The manufacturer hasn’t obtained a certificate of purpose for the imported or domestically produced air handling units or compressors, from the competent authority: (1) When the manufacturer imported or factory released the air handling units or compressors, which have determined its sales target, purpose and installation location, it may provide an engineering contract, purchase certificate or copy of uniform invoice, a statement of the refrigerant compressor model or other sufficient proof of documents for refrigeration equipment, for tax-exempt by affidavits. And the manufacturer should within three months from the day of importation or factory release of the air handling units or compressors, after completing the assembly, submit the proof documentation for refrigeration equipment that has been installed issued by the tax authority where the equipment is located, to Customs at the import location or the competent tax authority at the location of the manufacturer for case closure. If it is impossible to handle case closure within the time limit due to special reasons, it shall state the reasons and apply for an extension within the time limit for handling case closure. The extension period shall be determined by Customs at the import location or the competent tax authority at the location of the manufacturer according to actual circumstances; if it fails to handle case closure within the time limit, it shall be subject to supplementary collection of commodity tax in accordance with Article 3. (2) Importers other than the manufacturer that import air handling units or compressors, may apply to the local tax authority for provision of security, and after receiving such security, present the proof documentation to Customs for release without tax payment. After completing the assembly, the importer should submit the proof documentation for refrigeration equipment that has been installed issued by the tax authority where the equipment is located, and apply to the local tax authority who approved security for case closure. (3)When a manufacturer use tax-paid air handling units or compressors for the assembly of refrigerating equipment, it should, after completing the assembly, submit the proof documentation for refrigeration equipment that has been issued by the tax authority where the equipment is located, together with a tax payment certificate or receipt to the agency that collected the commodity tax to apply for tax refund or return of deposit. If the aforesaid tax-exempt air handling unit or compressor is not used according to the originally declared purpose, or transferred so that its tax exemption status no longer applies, the user that changes the purpose of usage or the transferor shall repay the tax to the local tax authority. Otherwise, the provisions of Item 4 of Article 32 of the Commodity Tax Act shall apply.