Invest in TaiwanDepartment of Investment Services, MOEA
[ Accesskey ]
Commodity tax is a single-stage excise tax levied on specific commodities manufactured domestically or imported from abroad. According to the MOF’s tax reform policy, in the future, the MOF plans to revoke the commodity tax on the categories for rubber tires, non-alcoholic beverages, flat-glass, and electrical appliances if the MOF can develop additional financial resources from the tax reform on increment of VAT rate.
For taxable commodities manufactured domestically, commodity tax is levied upon departure from manufacturer’s premises. For taxable commodities imported from abroad, the tax is levied when customs duty is paid. The following table shows the scope of taxation and responsible taxpayers under the Commodity Tax Act (CTA):
| Scope of taxation | Taxpayer | Exception |
|---|---|---|
| Commodities manufactured domestically | Manufacturer | |
| Commodities manufactured under consignment contract | Consignee (i.e. Manufacturer) | If the consignor is a manufacturer of taxable commodities, consignor can apply to be the taxpayer. |
| Commodities imported from abroad | Receiver of the goods, holder of the bill of lading or holder of the goods |
According to the CTA, seven categories of commodities are subject to commodity tax levied on an ad valorem basis or other specific bases. The following table is a brief outline of tax rates or tax amounts for each category of commodity.
| Category | Subcategory | Tax rates/Tax amounts | Exemptions |
|---|---|---|---|
| Vehicles | Sedans with less than 9 seats (cylinder volume not exceeding 2,000 cc) | 25% |
|
| Sedans with less than 9 seats (cylinder volume exceeding 2,001 cc) | 35% (30%, from the same day of the sixth year after the implementation of CTA) | ||
| Trucks, buses and other vehicles | 15% | ||
| Motorcycles | 17% | ||
| Rubber tires | 10%~15% | Inner tubes, solid rubber tires, and rubber tires for use on human-powered/ animal-powered vehicles and farming vehicles. | |
| Non-alcoholic beverages | Diluted natural fruit/vegetable juices | 8% | Pure (100%) natural fruit juices, fruit syrups, concentrated fruit syrups, concentrated fruit juices and natural vegetable juices which are in compliance with national standards. |
| Other beverages | 15% | ||
| Flat-glass | 10% | Electrification glass and reinforced glass for use in the production of molds | |
| Electrical appliances | Refrigerators | 13% |
|
| Color television sets | 13% | ||
| Air conditioners | 20% | ||
| Central station air conditioning systems | 15% | ||
| Dehumidifiers | 15% | ||
| Video recorders | 13% | ||
| Record players | 10% | ||
| Audio recorders | 10% | ||
| Stereophonic systems | 10% | ||
| Electric ovens | 15% | ||
| Cement | Up to NT$600/metric ton | ||
| Oil and gas | NT$690/KL~NT$6,830/KL; For Liquefied petroleum gas, NT$690/MT | For mixtures of various oils, the tax rate shall be the rate of the major component. |
Taxable commodities that qualify for the following conditions are exempt from commodity tax:
Commodity tax can be refunded or offset on tax-paid commodities or bonded commodities that qualify for the following conditions:
Domestic Commodity - For domestically produced commodities, the taxable value is the manufacturer’s selling price less any commodity tax that has been included in the price. Computation of taxable value:
Taxable Value = Selling Price * divided by ( 1 + Tax Rate )
* Business Tax is excluded when calculating the selling price. In cases where the manufacturer produced the taxable commodity under a consignment contract and where raw materials were provided by the consignor, the selling price shall be the selling price of the consignor.
Imported Commodities - For imported commodities, the taxable value shall be the total dutiable value for customs duty.
Manufacturers are required to file excise tax returns and pay to the government treasury and competent authority respectively by the fifteenth of the month following the departure of goods from the manufacturer’s premises. For imported taxable commodities, taxpayers should file with the Customs and pay the commodity tax along with the customs duty.
E-mail this page.