The National Taxation Bureau of Taipei, Ministry of Finance (hereinafter referred to as NTBT) announces that based on the principle of reciprocity, the Ministry of Finance may grant tax exemption privileges to foreign diplomatic missions in the Republic of China. That personnel includes their officials residing and entitled to diplomatic immunity in the Republic of China and the organizations and personnel eligible for tax exemption in each other's country as mutually agreed upon by the Republic of China and the foreign country concerned. The Ministry of Foreign Affairs grants the officials and personnel mentioned above Business Tax Exemption Cards to present at shopping for zero-tax-rate preferential treatment.
The NTBT states that the business entities who calculate tax according to Section 1, Chapter 4 of the Value-added and Non-value-added Business Tax Act and sell taxable goods or services to diplomatic missions shall fill the name of the diplomatic mission or their personnel in the buyer field, the certification number of the Business Tax Exemption Cards in the remark field, and get the signature of the purchasing official assigned by the diplomatic mission or the purchaser entitled to tax exemption. The business entities shall fill the sales amount above in the field of "Sales amount for non-customs exports and requiring certificates attached" and attach the detailed list of zero-tax-rate sales amount, certificate copies of foreign diplomatic mission, copies of Business Tax Exemption Cards, and copies of related certificates to apply zero-tax-rate filing.
The NTBT illustrates the above regulations with the following example. When a business entity sells taxable goods or services to common buyers, assuming that the price contains a sales amount of NT$1,000 and a tax amount of NT$50, the business entity shall issue a taxable uniform invoice with a total amount of NT$1,050. When selling to a purchaser, whether a foreign diplomatic mission or one of their personnel presenting a foreign official certificate and a Business Tax Exemption Card, the business entity shall issue a zero-tax-rate uniform invoice with a total amount of NT$1,000.
The NTBT further advises that according to Subparagraph 6, Paragraph 1, Article 11 of the Uniform Invoice Award Regulations, the receipts issued for zero-tax-rate sales may not be applied to the uniform invoice receipt lottery. Therefore, if foreign diplomatic officials get receipts of zero-tax-rate uniform invoices when shopping, they cannot redeem them for the cash awards of the uniform invoice receipt lottery.
(Contact: Miss Chen, Revenue Assessor of the Fourth Examination Division; Tel: 886-2-2311-3711 ext.2573)