Tax levies are divided into national, special municipality, and county (or county-level city) taxes.

Legislation by special municipalities, counties or county-level cities, and rural or urban townships or township-level cities for the purpose of levying taxes is restricted to legislation for which this Act expressly provides, and shall conform with the Act Governing Local Tax Regulations.

The following taxes are national taxes:
1. Income tax.
2. Estate and gift tax.
3. Customs duties.
4. Business tax.
5. Commodity tax.
6. Tobacco and alcohol tax.
7. Securities transaction tax.
8. Futures transaction tax.
9. Mining concession tax.
Ten percent of total revenue from the income tax of subparagraph 1 of the preceding paragraph, 40 percent of total revenue from the business tax of subparagraph 4 after deduction of duly appropriated Uniform Invoice Prizes, and 10 percent of total revenue from the commodity tax of subparagraph 5 shall be redistributed from the central government to the special municipalities, counties and county-level cities, and rural and urban townships and township-level cities.
Fifty percent of revenue from the estate and gift tax of paragraph 1, subparagraph 2 that is collected in a special municipality shall be returned to the respective municipality; 80 percent of revenue from such tax that is collected in a county-level city shall be returned to the respective county-level city; and 80 of revenue from such tax that is collected in a rural or urban township or township-level city shall be returned to that township or township-level city.
Eighteen percent of total revenue from the tobacco and alcohol tax of paragraph 1, subparagraph 6 shall be distributed among the special municipalities and the counties and county-level cities of Taiwan Province, in proportion to their populations; 2 percent of the total revenue shall be distributed to Jinmen County and Lianjiang County of Fujian Province, in proportion to their populations.

(deleted)

(deleted)

(deleted)

The following taxes are special municipality and county and county-level city taxes:
1. Land tax, which includes the following:
(1) Land value tax
(2) Agricultural land tax
(3) Land value increment tax.
2. Building tax.
3. Vehicle license tax.
4. Deed tax.
5. Stamp tax.
6. Amusement tax.
7. Special tax levies.
A county shall return 30 percent of the total revenue from the land value tax of subparagraph 1, item 1 that is collected in a given rural or urban township or township-level city to the respective rural or urban township or township-level city, and shall redistribute a further 20 percent of the total revenue so collected among the rural and urban townships and township-level cities of the county; a county shall return all of the total revenues from the agricultural land tax of subparagraph 1, item 2 that are collected in a given rural or urban township or township-level city to the respective rural or urban township or township-level city; 20 percent of the revenues from the land value increment tax of subparagraph 1, item 3 that are collected in counties and county-level cities shall be transferred to the central government for redistribution among counties and county-level cities.
A county shall return 40 percent of the revenue from the building tax of paragraph 1, subparagraph 2 that is collected in a given rural or urban township or township-level city of the county to the respective rural or urban township or township-level city, and shall redistribute a further 20 percent of the total revenues so collected to the county's rural and urban townships and township-level cities.
A county shall return 80 percent of the revenue from the deed tax of paragraph 1, subparagraph 4 that is collected in a given rural or urban township or township-level city of the county to the respective rural or urban township or township-level city, and shall redistribute 20 percent of the total revenue so collected to the county's rural and urban townships and township-level cities.
A county shall return all of the revenue from the amusement tax of paragraph 1, subparagraph 6 that is collected in a given rural or urban township or township-level city to the respective rural or urban township or township-level city.
The term "special tax levies" of paragraph 1, subparagraph 7 refers to taxes levied through legislation by local legislative bodies in response to the requirements of local self-government. Such legislation, however, may not levy further taxes on items to which commodity tax or alcohol and tobacco tax already apply.

(deleted)

(deleted)

(deleted)

(deleted)

The redistribution of tax revenues pursuant to the relevant provisions of Article 8, paragraph 2 and Article 12, paragraphs 2 to 4 shall be based on the principles of transparency and the application of formulas. The local governments that receive the redistributions shall recognize the amounts so received as current-year tax revenues.
The regulations that govern the redistribution of tax funds from the central government to the special municipalities, counties and county-level cities, and rural and urban townships and township level cities shall conform with each of the following subparagraphs. The regulations shall be drafted by the Ministry of Finance following consultation with the central authority for budget, accounting, and statistics and the local governments receiving the distributions, and shall be submitted to the Executive Yuan for ratification:
1. Six percent of the total amount of tax funds redistributed by the central government to special municipalities, counties and county-level cities, and rural and urban townships and township-level cities pursuant to Article 8, paragraph 2 shall be recognized as "special centrally-funded tax revenues." The remaining 94 percent shall be recognized as "general centrally-funded tax revenues." Both categories of tax funds shall be distributed at specific ratios to special municipalities, counties and county-level cities, and rural and urban townships and township-level cities.
2. The full amount of tax funds redistributed from the central government to counties and county-level cities in accordance with the latter part of Article 12, paragraph 2 shall be recognized as "general centrally-funded tax revenues."
3. The "special centrally-funded tax revenues" of subparagraph 1 shall be provided to the local governments that receive the distributions as necessary funding support for use in emergencies and other major matters. The funds will be distributed by the Executive Yuan based on actual circumstances.
4. After a determination that the "general centrally-funded tax revenues" of subparagraph 1 are funds that can be provided for distribution to special municipalities, factors shall be considered relating to the special municipalities in the preceding fiscal years, such as the sales revenues of business units, the municipalities' fiscal capabilities, and their populations and land areas, in order to develop a formula for the distribution of the funds.
5. After a determination that the "general centrally-funded tax revenues" of subparagraphs 1 and 2 are funds that can be provided for distribution to counties and county-level cities, they shall be distributed based on the following formula:
(1) Eighty-five percent of the funds that can be provided for distribution to counties and county-level cities shall be allocated according to ratios determined by calculating the average difference, during the preceding three fiscal years, between the basic fiscal needs and basic fiscal revenues of each of the counties and county-level cities receiving the allocations. The ratios for allocation thus calculated shall be re-examined and adjusted every three years.
(2) Fifteen percent of the funds that can be provided for distribution to counties and county-level cities shall be allocated according to ratios determined by calculating the sales revenues of business units within the jurisdictions of each of the given counties and county-level cities.
6. After a determination that the general centrally-funded tax revenues under subparagraph 1 can be distributed to rural and urban townships and township-level cities, a formula shall be developed for distribution of the funds to the each of the rural and urban townships and township-level cities in consideration of personnel expenses for formal civil servants and their basic infrastructure needs.
The standards for and method of calculating the "fiscal capability" of subparagraph 4 of the preceding paragraph and the "basic fiscal needs and basic fiscal revenues" of subparagraph 5, item 1 shall be expressly provided in the regulations governing the redistribution of tax funds from the central government provided in the preceding paragraph. Jinmen County and Lianjiang County of Fujian Province shall be considered separately.
A county government shall adopt regulations, based on the principal of adjustments for fiscal surpluses or shortages, to govern the redistribution of funds from the county to rural and urban townships and township-level cities under Article 12, paragraphs 2 to 4. Funds that are redistributed according to formula may not be less than 90 percent of the total funds available for redistribution.

(deleted)

No government at any level may impose a double tax or a surtax on the tax levies of another government at the same level or any other level. This restriction does not apply, however, to the governments of special municipalities, counties, and county-level cities when, to raise the necessary financing to manage self-governmental affairs, they impose a surtax in accordance with the Act Governing Local Tax Regulations.
No local government at any level may impose an entry tax or a transit tax on goods that enter or pass through its jurisdiction.

A government at any level, in order to meet special needs, may impose a provisional tax levy through legislation by the people's representative body at that level.