In order to expand foreign trade export, develop export-oriented economy and strengthen the management of export tax rebate, the relevant departments of Taiwan Province Province revised and promulgated the Measures for Tax Refund of Raw Materials for Export Goods in July 1977 (hereinafter referred to as the Measures for Export Tax Refund in Taiwan Province Province). The main contents are:

(A) the scope of application of export tax rebates

The first paragraph of Article 7 of the Business Tax Law of Taiwan Province Province has stipulated that the applicable tax rate for export goods is zero, and its export tax rebate measures have been stipulated in detail in the Business Tax Law. Therefore, Taiwan Province Province's export tax rebate measures stipulate that the scope of export tax rebate is limited to import duties, commercial port construction fees, commodity taxes and slaughter taxes. The details are as follows: All products have been exported in Taiwan Province Province, and the foreign exchange earned will be based on the Foreign Exchange Management Law. Goods sold to institutions or individuals enjoying diplomatic treatment in Taiwan Province Province, which have foreign exchange income or other special circumstances that should be refunded, are also regarded as exports. If the foreign exchange earned from export is lower than the total price of export raw materials, the application for export tax refund will not be accepted, except in four cases:

(1) The FOB price of finished products for export shall not be lower than the FOB price of raw materials used for export, nor shall it be lower than the price of goods of similar quality from other manufacturers in the same region;

(2) The actual FOB price of finished products is higher than the FOB price of raw materials used, and there is another foreign exchange income as proved by the foreign exchange administration authorities of Taiwan Province Province;

(3) Due to the defects in the previous batch of export goods, the buyer and the seller agree that the latter batch of goods will be discounted at a low price or deducted from the FOB price of this batch of goods, resulting in underreporting, which must be specially approved by the competent trade authorities of Taiwan Province Province;

Export Tax Refund Policy in Taiwan Province Province

(four) other special circumstances, approved by the Taiwan Province Provincial Department of Finance in consultation with the Ministry of Economic Affairs. The exporter shall submit the relevant export certificate to declare the export tax rebate within one year and six months from the date of calculation according to the regulations, and it will not be accepted after the deadline (but the exemption of the import certificate according to the regulations should be declared within six months after export). Goods that have been reported for export and returned to Taiwan Province Province for some reason are exempted from import tax and finished goods tax, but the tax on raw materials that have been refunded at the time of export is still levied according to the original amount.

(2) Export tax rebate measures

According to the Measures of Taiwan Province Province on Export Tax Refund, the export tax rebate in Taiwan Province Province can be divided into two types: fixed tax rebate and fixed tax rebate. When the main materials are exported, the tax refund shall be calculated according to the quantity of raw materials required; When the auxiliary materials are exported as finished products, the tax refund standard shall be approved according to the export price, and the tax refund shall be calculated separately according to the proportion of national tax and local tax. If the tax refund calculated in accordance with these regulations is lower than the proportion or amount stipulated by the Taiwan Province Provincial Department of Finance in consultation with the Ministry of Economic Affairs, it will not be refunded. The fixed-rate and fixed-rate tax refund shall be implemented by the Taiwan Province Provincial Department of Finance according to the following provisions: (1) Fixed-rate tax refund. According to the standard of raw material tax rebate stipulated by the Ministry of Economic Affairs of Taiwan Province Province, the average tax rebate per unit of export goods is calculated according to the average export duty-paid price, and a fixed tax rebate table is compiled. The calculation formula is: fixed tax rebate rate = average import duty-paid price per unit of material consumption tax rate. (2) Fixed tax rebate. According to the standard of raw material nuclear refund stipulated by the Ministry of Economic Affairs of Taiwan Province Province and the data of customs cases, the average tax refund amount per unit of export goods is calculated, and then the average FOB price per unit of export goods is calculated, and the ad valorem tax refund amount of export goods is calculated, and a fixed-rate tax refund table is compiled. The calculation formula is: ad valorem tax rebate rate = (total export tax rebate for manufactured goods in a certain period/total export of manufactured goods in a certain period) (total export of manufactured goods in a certain period). In addition, for the export goods subject to quota or fixed-rate tax refund, if the basic raw materials used in Taiwan Province Province can be produced and the quantity is sufficient to meet the demand on the island, and can be fully supplied at the agreed price, and the quality meets the demand, it is necessary to apply for the exemption certificate based on the most basic raw materials produced in Taiwan Province Province, and the specific items will be agreed by the Ministry of Finance and the Ministry of Economic Affairs. At the same time, if the basic raw materials used in export goods are duty-free or sold domestically, and the production enterprise imports the intermediate products or their substitutes that can be made of the basic raw materials again, the Taiwan Province Provincial Department of Finance, together with the Ministry of Economic Affairs, will lower the tax refund standard for the intermediate raw materials or their substitutes or refuse to refund the tax. Exporters who meet the requirements stipulated by the Taiwan Province Provincial Department of Finance and consider it appropriate, and have no loss on average after investigation and no record of illegal tax evasion in the same period, but have made up for the losses in the past year, are allowed to declare the raw material tax on export goods by themselves.

(3) Measures to prevent tax fraud

In order to prevent illegal manufacturers from defrauding export tax rebates, if the raw material tax on export goods filed by the competent department of Taiwan Province Province cannot be written off within the prescribed time limit, the tax should be paid immediately and a late fee of 0.5 ‰ should be added daily. If imported raw materials or their products are buried in the domestic market without paying taxes, depending on the seriousness of the case, sanctions such as stopping export loans, writing off imports, and stopping enjoying preferential tax accounting for raw materials will be given.