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 Zone of International Airport Park｜第 5 條｜航空｜Regulation｜In Force
交通部｜v1.0
Last Amended: 2019-10-14
If a profit-seeking enterprise, which qualifies for the preceding Article, directs or delegates a FTZ enterprise to conduct its procurement, importation, storage, or delivery of goods in the FTZ, and meets the following scope, the respective income from the sale of goods shall be exempt from income tax in accordance with Article 3: 1)Procurement: A.Refers to the transactions that profit-seeking enterprises purchase goods within the territory of the ROC, store such goods in the FTZ, and sell them to domestic or overseas customers by preforming selling activities overseas, or via either domestic brokers, general commission-charging agents, or other independent agents. However, if the goods are sold to domestic customers, any of the following conditions shall be applied: 1.Domestically purchased goods are derived from importation from other profit-seeking enterprises, stored in the FTZ and are of unchanging nature. However, it is subject to the other profit-seeking enterprise which only engage in preparatory or auxiliary business activities within the territory of the ROC. 2.Domestically purchased goods are produced domestically by other profit-seeking enterprises, sold to the FTZ enterprise for processing, and repurchased by contract with the FTZ enterprise, and then exported. B.“Domestic procurement” specified in the preceding Item refers to purchasing the goods from domestic or foreign owners and which are stored in the territory of the ROC. 2)Importation: refers to the transactions that profit-seeking enterprises import goods that are produced or purchased overseas, store such goods in the FTZ, and sell them to domestic or overseas customers by preforming selling activities overseas, or via either domestic brokers, general commission-charging agents, or other independent agents 3)Storage or Delivery: A.Refers to the storage in the FTZ or the delivery to customers after sales under the provisions of the preceding two subparagraphs, including the necessary preservation, classification, grading, sub-packaging, packaging, relabeling, cutting, and other processes which do not change the nature of the goods during the storage or delivery process. B.In regard to the delivery to customers stipulated in the preceding item, if it is an overseas customer, it shall include the delivery to the customer's domestic storage location or for domestic processing and manufacturing; in the case of a domestic customer, it shall include the delivery to the customer's overseas storage location or for overseas processing and manufacturing. C.The buyer of the good sold is not a natural person. 4)For a profit-seeking enterprise that engages in activities under the preceding three subparagraphs, its individual and overall activities shall be of a preparatory or auxiliary nature.