The business tax rate is zero for sale of the following goods or services:
1. Exported goods.
2. Services relating to export or services provided in the R.O.C. but used in a foreign country.
3. Goods sold to outbound or transit passengers by duty-free shops established under applicable law.
4. Goods or services sold to a bonded zone business entity for its operational use.
5. International transportation; however, foreign transport enterprises engaging in international transport within the territory of the R.O.C. shall qualify for the zero tax rate only if reciprocal treatment, or exemption from similar taxes, is given to international transport enterprises of the R.O.C. by the foreign country in which the foreign enterprise is incorporated.
6. Vessels and aircraft used in international transportation and deep sea fishing boats.
7. Goods and maintenance services sold to be used for vessels and aircrafts which are used for international transportation and deep sea fishing boats.
8. Goods sold by a bonded zone business entity to a taxable zone business entity and exported directly without being transported to the taxable zone.
9. Goods sold by a bonded zone business entity to a taxable zone business entity for export and placed in a bonded warehouse or logistics center administered by an enterprise inside a free trade zone or by Customs.

Foreign enterprises, institutions, organizations, or associations having no fixed place of business within the territory of the ROC, which purchase the goods or services on which value-added business tax(VAT) is levied to a total of a certain amount of money or more within the ROC for the purpose of engaging in exhibitions or temporary business activities within the period of one year may qualify for a VAT refund on the aforesaid goods or services; however, in the case of the following conditions such goods or services shall not be applicable for tax refund:(i) where the documents of the goods or services purchased are not obtained or kept as in the first paragraph above, or(ii)where the goods or services are purchased under the provisions of Subparagraphs 2 to 5 of Paragragh 1 of Article 19 of the Act.
The aforesaid institutions may qualify for VAT refund, provided that reciprocal treatment, or exemption from similar taxes, is given to the same institutions of the ROC by the foreign country in which they are performing such activities as are described also above.
Regulations concerning the calculation of the one-year period, the scope of exhibitions or temporary business activities, the definition of the certain amount of money or more, the obtaining of documentary evidence, the attached documents, the period of time within which application may be made for the refund and other relevant matters specified in the first paragraph, shall be prescribed by the Ministry of Finance(hereinafter referred to as the MOF).

The following goods or services are exempted from the business tax:
1. The land being sold.
2. The water supplied to farmland for irrigation.
3. The medical services, medicine, ward lodging and meals provided by hospitals, clinics and sanitariums.
4. The social welfare services provided by social welfare organizations or institutions or labor organizations, duly established with permission of the competent authority, and social welfare services consigned by the government.
5. The education services offered by schools, kindergartens, and other educational and cultural institutions including cultural services offered under government's consignment.
6. Publications which are textbooks authorized by education authorities for use at various levels of schools and important specialized academic writings awarded by the government according to the law issued by the publishing industry.
7. (Deleted).
8. The goods or services sold by student-run shops of vocational schools which do not serve outsiders.
9. Newspaper, publications, communications manuscripts, advertisements, program broadcasting and program airing produced and sold by legally registered newspaper and magazine publishers, news agencies, and television and broadcasting stations, excluding the advertisements sold by newspaper publishers and advertisements broadcasted by television stations.
10. The goods or services sold to their members by cooperatives managed in accordance with the law; and business consigned by government to said cooperatives.
11. The goods or services sold to their members by farmers', fishermen's, workers', commercial and industrial associations in accordance with the law, business consigned by the government to said associations, and the management fee charged in accordance with Article 27 of “The Agricultural Products Market Transaction Act” for the use of an agricultural products wholesale market and in which the share ownership of farmers' associations, fishermen's associations, cooperatives and government institutions accounts for more than 70%.
12. The proceeds from goods sold in tenders, charity sales and charity shows held by charity and relief institutions organized according to the law, provided that the total proceeds are solely used by said institutions after deducting the necessary expenditures for the tenders, charity sales and charity shows.
13. The goods or services sold by employee welfare organizations of government bodies, state enterprises and social organizations which are organized and operated under relevant laws and are not open to the public.
14. The goods or services sold by prison workshops and their finished goods stores.
15. Services rendered by post and telecommunication offices in accordance with the law; and business consigned under government mandate.
16. Monopoly goods sold at statutory prices by state owned monopoly industries and by business entities which are authorized to sell the monopoly goods.
17. The service of consigned sale of stamp tax tickets and postage stamps.
18. The goods or services sold by peddlers or hawkers.
19. Feed and unprocessed raw agricultural, forestry, fishing and livestock products, and by-products; the agricultural, forestry, fishing and livestock products, and by-products of farmers' and fishermen's harvests sold by farmers and fishermen.
20. The fish caught and sold by fishermen.
21. The sales of rice and wheat flour and the service of husking rice.
22. The sales of fixed assets which are not regularly traded by business entities which compute their business tax according to Section 2 of Chapter 4.
23. Insurance policies accepted by insurance enterprises for insurance promoted by the government, covering military, government and education entities and their dependents, laborers, students, farmers, fishermen, exports, and compulsory automobile third party liability insurance, and reinsurance premiums paid out by insurance enterprises from premiums received by the same, and life insurance policy reserves, annuity insurance policy reserves and health insurance policy reserves, provided, however, that this does not include income, other benefits and return of policy reserves received on termination of life insurance, annuity insurance and health insurance.
24. The bonds issued by all levels of government and securities upon which a securities transaction tax has been imposed in accordance with the law.
25. Residual or obsolete goods sold at tenders by all levels of government.
26. The sales of weapons, warships, aircraft, tanks and reconnaissance communication equipment for military use to defense agencies.
27. Fertilizer, pesticides, veterinary drugs, agricultural machinery, transportation equipment for farmland, and fuel oil and electricity used by such machinery and equipment.
28. Fishing boats for coastal or inshore fishery and machinery, equipment, nets and fuel oil used by fishing boats.
29. Interest on the flow of funds between head and branch offices of banking enterprises, the revenue of trust and investment enterprise derived from trust funds in the manner designated by the settler, provided the settler bears the risk of loss and enjoys the proceeds, and unredeemed items where the proceeds arising from their sale by pawnshops does not exceed the aggregate of principal and interest receivable.
30. Gold bars, gold bricks, gold foil, gold coins and gold ornaments, excluding the processing fee.
31. The research services supplied by scientific or technological institutions which are established under the approval of the government.
32. The sales amount of operating financial derivatives products, corporate bonds, financial bonds, new Taiwan dollar interbank call loans and foreign currency call loans, excluding commissions and service charges of these products.
Any business entity which sells the aforementioned exempt goods or services may apply to the MOF to waive the exemption and compute its business tax according to the provisions of Section 1 of Chapter 4. However, once approved, no changes may be made within three years.

The proceeds from goods sold in auctions or charity sales and from benefit performances held by a settler of a charitable trust may be exempted from the business tax, provided that the proceeds, after deducting the necessary expenses for the auctions, charity sales, and benefit performances, are entirely and solely for the use of by the charity.
The proceeds from goods sold in auctions or charity sales, and from benefit performances referred to in the preceding paragraph are excluded from the sales amount of the settler.

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When the agricultural or fishery fuel oil exempted from business tax under Subparagraph 27 or 28 of Paragraph 1 of Article 8 herein loses tax-exempt status due to a transfer or a change in its purpose of use, the business tax so exempted shall become due and payable.

The importation of any of the following goods is exempted from the business tax:
1. The goods specified in Subparagraph 6, Article 7, the fertilizer specified in Subparagraph 27 of Paragraph 1 of Article 8, and the goods specified in Subparagraph 30 of Paragraph 1 of Article 8.
2. The goods specified in Article 49 of the Customs Act, provided, however, that in case of transfer of ownership or change in purpose of use that results in supplementary payment of customs duties under Article 55 of the Customs Act, the business tax so exempted shall become due and payable.
3. National antiques.

In the case of dealing with an extraordinary economic situation, or a situation to accommodate the supply of goods, the Executive Yuan may make an adjustment in business tax on imported wheat, barley, corn and soy beans and the restriction of Article 10 does not apply.
The categories of goods subject to adjustment of business tax referred to in the preceding paragraph, the range of actual adjustment, and the dates for commencing and terminating such adjustment shall be drawn up jointly by the MOF and the related authorities, and be submitted to the Executive Yuan for approval.