Regulations Governing Profit-seeking Enterprise Income Tax Exemption for Profit-seeking Enterprises Conducting Procurement and/or Importation and/or Storage and/or Delivery of Goods in Free Trade Zones｜第 6 條｜港務｜Regulation｜In Force
第 二 章｜交通部｜v1.0
Last Amended: 2019-10-09
A profit-seeking enterprise eligible for income tax exemption under Article 3 shall fill out the prescribed format, submit the following documents stated below, and apply to the local FTZ management authority for the issuance of a certification letter concerning the undertaking of procurement, importation, storage, or delivery of goods in the FTZ that are within a preparatory or auxiliary nature before the end of the third month of the following fiscal year of the income year. The exemption period is up to 5 years: 1)Proof of registration of the profit-seeking enterprise. 2)A declaration that place of effective management of the profit-seeking enterprise established or registered under the overseas laws is outside the ROC. 3)Proof that place of effective management of the profit-seeking enterprise established or registered under the laws of the ROC is outside the ROC. 4)A proposal from a profit-seeking enterprise for directing or delegating a FTZ enterprise to conduct procurement, importation, storage, or delivery of goods covers the following content: A.Basic information of the profit-seeking enterprise, including date of incorporation, amount of capital, chairman, general manager, number of employees, annual turnover, scope of business, location of company and contacts, etc. B.Description of the core business activities (including the functions performed, the risks assumed, and the assets used within and outside the territory of the ROC). C.Description that the business activities carried out within the territory of the ROC are not part of the core, necessity, and importance in terms of their overall domestic and overseas business activities. D.Description that the storage and sale of goods in the FTZ is under the tax exemption scope. E.Other documents to prove that the profit-seeking enterprise is in accordance with the provisions of Articles 4 and 5. 5)The profit-seeking enterprise delegating the FTZ enterprise to engage in the procurement, importation, storage, or delivery of goods shall submit the effective delegation contract signed with the FTZ enterprise, as well as a translated and condensed Chinese version of the contract. While reviewing the documents stipulated in Subparagraph 4 of the preceding Paragraph, if the FTZ management authority and the tax collection authority have any questions regarding whether the business activities of the profit-seeking enterprise within the territory of the ROC are preparatory or auxiliary, the authorities may request the profit-seeking enterprise for a value chain contribution analysis and related supporting documents. If the proposal and the value chain contribution analysis specified in Subparagraph 4 of Paragraph 1 have been certified by a certified public accountant, they could be assessed by paper reviewing. If the profit-seeking enterprise delegates an agent as applicant, the agent should submit the original copy of the power of attorney. The profit-seeking enterprise may apply for a letter of certification in accordance with Paragraph 1 for the individual goods it sells. It shall only undertake preparatory or auxiliary activities within the territory of the ROC in accordance with Article 4, the domestic activities of individual goods shall be in line with the scope of the preceding Article, and the income derived from the sale of the individual goods can be clearly calculated. If the aforementioned criteria that shall be reviewed by the FTZ management authority are met, a letter of certification for the individual goods may be issued. When the FTZ management authority issues the letter of certification in accordance with the first and the preceding Paragraphs, it shall indicate the exemption period, and carbon copies shall be sent to the competent authority, Taxation Administration, Ministry of Finance and the local tax collection authority.