The Commodity Tax is a single-stage excise tax levied on specific commodities manufactured domestically or imported from abroad.
For taxable commodities manufactured domestically, the Commodity Tax is levied upon departure from a manufacturer’s premises. For taxable commodities imported from abroad, the tax is levied when the customs duty is paid. The following table shows the scope of taxation and responsible taxpayers under the Commodity Tax:
| 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, the 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 | |
| Untaxed commodities auctioned off by the court or other institution | The winning bidder, the purchaser, or the assumer of the goods | |
| Tax-exempted commodities, which are either resold or used for other purposes, have lost their tax-exempt status as a result | The person initiating the transfer or the change in purpose of use or the holder of the good |
Taxable commodities that satisfy the following conditions are exempt from Commodity Tax:
Commodity Tax can be refunded or offset against tax paid on commodities or bonded commodities that satisfy the following conditions:
Seven categories of commodities are subject to the Commodity Tax levied on an ad valorem or other specific basis. The following is a brief outline of the tax rates or amounts for each category of commodity
| Category | Subcategory | Tax rates/Tax amounts |
|---|---|---|
| Vehicles | Sedans with less than 9 seats (cylinder volume not exceeding 2,000 cc) |
25% |
| Sedans with less than 9 seats ( cylinder volume of 2,001 cc or more ) |
30% | |
| Trucks, buses and other vehicles | 15% | |
| Motorcycles | 17% | |
| Rubber tires | 10%-15% | |
| Non-alcoholic beverages | Diluted natural fruit/vegetable juices | 8% |
| Other beverages | 15% | |
| Flat-glass | 10% | |
| Electrical appliances | Refrigerators | 13% |
| Television sets | 13% | |
| Air conditioners | 20% | |
| Central 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 | For liquefied petroleum gas, NT$690/MT NT$110/KL~ NT$6,830/KL for others |
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)
*BT is excluded when calculating the selling price.
Where the manufacturer produced the taxable commodity under a consignment contract and where raw materials were provided by the consignor, the selling price is the selling price of the consignor.
For imported commodities, the taxable value is the total value subject to customs duty.
Manufacturers are required to file excise tax returns and pay tax due to the government treasury and authorities-in-charge, respectively, by the 15th of the month following the month the goods left the manufacturer’s premises. For imported taxable commodities, taxpayers must file with customs and pay the Commodity Tax along with the customs duty.
For the untaxed commodities auctioned off by the court or other institution, the taxpayer shall report and pay the tax with the competent tax collection authority before delivery of the commodities.
The taxpayer shall declare and pay the tax to the competent tax authority within 30 days from the day following the day on which the tax-exempt commodities are resold or used for other purposes.
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