TAIWAN RULING MAY AID FOREIGN ENTERPRISES USING LOGISTICS DISTRIBUTION CENTERS

A recently issued ruling from Taiwan clarified the circumstances under which a foreign principal may not be subject to tax in Taiwan on the sale by the foreign principal of foreign-made products stored in its Taiwan logistic distribution center (LDC). The Taiwan tax authority taxes LDCs depends on w...

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Bibliographic Details
Published in:Journal of International Taxation 2008-11, Vol.19 (11), p.14
Main Authors: Lim, Lisa, Chu, Sandy, Hsu, Chi-Chang, Chea, William
Format: Article
Language:English
Subjects:
Corporate taxes
Distribution centers
Foreign investment
Income taxes
International taxation
Sales
Tax exemptions
Transfer pricing
Online Access:Get full text
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Summary:A recently issued ruling from Taiwan clarified the circumstances under which a foreign principal may not be subject to tax in Taiwan on the sale by the foreign principal of foreign-made products stored in its Taiwan logistic distribution center (LDC). The Taiwan tax authority taxes LDCs depends on whether storage and distribution services are provided to local or foreign customers. If these services are provided to local, Taiwanese customers, the tax authority views the services as contributing to the ultimate value of the products sold in Taiwan and, therefore, Taiwan income tax should be imposed on the services.
ISSN:1049-6378