Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products Article 13

For export factories or firms which meet any one of the two requirements below and calculate their Business Tax according to the provisions of Section 1, Chapter 4 of the said Act, such factories or firms may record the Business Tax payable on account on their imported raw materials by self-executed affidavits in accordance with the provisions of the Regulation.1. Exclusively provide taxable goods or services.2. Exclusively provide taxable goods or services, investment and apply the direct deduction method for computing tax.The provision prescribed in the above paragraph is only applicable to factories or firms engaged in exportation which import raw materials directly from abroad and which are then re-exported by themselves. It is not applicable to the cases where importation and exportation occurs between a taxable area and a bonded area.The Business Tax payable recorded on account shall be offset against the amount calculated according to the FOB price of the exported goods and the tax rate prescribed in Article 10 of the Act.The Business Tax payable on imported raw materials which has been approved to be recorded on account shall be offset monthly by the Customs based on the total amount of exports in said month.Detailed information on the amount of Business Tax payable recorded on account after being offset as prescribed in the above paragraph shall be provided on the website of the Customs to factories and firms for checking.The operational regulations of the Business Tax payable recorded on account and being offset on imported raw materials used for exportation shall be prescribed by the Customs.