Goods to be transported overseas into a free trade zone by a free-trade-zone enterprise for its operations shall be exempted from customs duty, commodity tax, business tax, tobacco and alcohol tax, tobacco health and welfare surcharges, trade promotion service fees, and harbor service dues.
Self-use machinery and equipment to be transported overseas into a free trade zone by a free-trade-zone enterprise for its own use shall be exempted from customs duty, commodity tax, business tax, trade promotion service fees, and harbor service dues provided, however, that if the same are transported to a tax area within five (5) years after their entry into the free trade zone, supplemental assessment of relevant taxes and dues shall be imposed in accordance with the acts and regulations applicable to import of goods.
No tax exemption, bonding, tax crediting, or tax depositing procedure is required for those exempted from tax in accordance with the preceding two paragraphs.
Those involved in the application to operate a free-trade-zone enterprise and obtain the operation permit shall apply to the rules in the preceding two paragraphs during the establishment period.

The goods delivered to other countries or bonded areas and the goods delivered from a tax or bonded area into a free trade zone by a free-trade-zone enterprise are free from trade promotion service charges in accordance with the Foreign Trade Act.

Goods to be transported from a free trade zone to a tax area by a free-trade-zone enterprise shall be subject to the assessment and levy of customs duty, commodity tax, business tax, tobacco and alcohol tax, tobacco health and welfare surcharges, trade promotion service fees, and harbor service dues in accordance with relevant acts and regulations applicable to import of goods; provided, however, that the customs value shall be evaluated on the products processed, manufactured, sorting, simple processed, examined, or tested within a free trade zone based on the price of configuration of such products at the time of exit from the free trade zone after the added value thereof accruing within the free trade zone is deducted.
Services to be rendered or sold to a tax area by a free-trade-zone enterprise shall be subject to assessment or levy of business tax in accordance with the act.

Goods for operation and self-use machinery and equipment to be transported from a tax area to a free trade zone by a free-trade-zone enterprise shall be considered export that may apply for tax reduction, exemption or returning customs duty, commodity tax, tobacco and alcohol tax, and tobacco health and welfare surcharges in accordance with relevant acts and regulations.
Duty-paid imported goods or non-bonded domestic goods to be transported from a tax area into a free trade zone by a free-trade-zone enterprise for its operations shall be exempted from customs duty if said goods are transported back to a tax area within five (5)years from the next day of entry.
However, where there is tax free or bonded goods added to said goods, then the additional tax or bonded goods are subject to custom duty and relevant taxes.
For goods and self-use machinery and equipment set forth in the preceding two paragraphs with tax reduction, exemption or return transported back to a tax area, the supplemental payment of the duty and taxes shall be paid in accordance with original tax reduced, exempted or returned. Those involved in the application to operate a free-trade-zone enterprise and obtain the operation permit shall follow rules in the first and preceding paragraphs for self-use machinery and equipment transported from a tax area during the establishment period.

Where any tax-free goods, machinery or equipment of a free-trade-zone enterprise needs to be transported to a tax area for repair, test, inspection, and/or commissioned processing, with prior approval of Customs, the tax bonding may be exempted from provided that if the same are returned to the free trade zone within six (6) months since the approval, the pending case may thereafter be closed accordingly. If the same is not returned upon expiration of the six-month deadline, it shall be declared to Customs for supplemental payment of the duty and taxes.
Under a special circumstance as approved by Customs via application, the goods transported to a tax area as referred to in the preceding paragraph may be exported directly without having to be returned to the said free trade zone, and the pending case may thereafter be closed accordingly.
In the case of the extension of the deadline to return to the free trade zone as referred to in the first paragraph, an application shall be filed with Customs elaborating the causes in writing along with supporting documents and certificates; provided, however, that the extension is subject to a limit of six (6) months.
The goods to be transported from a free trade zone to a tax area for exhibition by a free-trade-zone enterprise shall apply to the regulations set forth in the preceding three paragraphs.

Where tax-free goods are transported out of a free trade zone to a processing contractor located in a tax area in accordance with the provisions of the preceding Article, such goods shall be limited to those which are not prohibited. Except for one of any following circumstances, the imported raw materials used in the processing operation performed by the processing contractor located in the tax area as set forth in the preceding paragraph may apply for duty drawback in accordance with the Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products:
1. The item of duty refund has been cancelled by the Ministry of Finance by public notice.
2. The amount of the refundable duty for the raw materials, or percentage of it in the FOB price of the finished products is lower than the limit prescribed by the Ministry of Finance. Where any goods, machinery, or equipment of a free-trade-zone enterprise needs to be transported to a tax area for repair, test, inspection, and/or commissioned processing, due to commission of free-trade-zone enterprise or foreign enterprise, agency, group, or organization accepted by tax area enterprise are shipped back to free trade zone after completion of work, the business tax rate applicable for said labor income shall be zero.

Goods to be transported to a bonded area from a free trade zone by a free-trade-zone enterprise shall be exempted from relevant duties and taxes in accordance with the relevant acts and regulations applicable to bonded goods.

The business tax rate for following goods or labor shall be zero:
1. The goods and private use machinery or equipment sold by enterprise(s) in tax area or bonded area to free-trade-zone enterprises for operation.
2. The goods stored in free-trade-zone enterprise for export by sales from bonded area enterprise(s) to exporting company.
3. The goods stored in free-trade-zone enterprise for export by sales from tax area enterprise(s) to bonded area enterprise(s).
4. The labors for operation sold from enterprise(s) in tax area or bonded area to free-trade-zone enterprise(s).
For the goods or services to be sold by a free-trade-zone enterprise or by a foreign enterprise, agency, entity or organization to another free-trade-zone enterprise in the same free trade zones, or to the free-trade-zone enterprise(s) in another free trade zone, or to foreign customers, or to the enterprises in another bonded area, or to an exporter for direct export or storage in a bonded warehouse or a logistics center for exporting, instead of shipping the same to any tax area, the business tax rate applicable thereto shall be zero.

Profit-seeking enterprises, which engage only in preliminary or auxiliary business activities in the ROC by the enterprises themselves or delegate free-trade-zone enterprises to purchase, import, store, or deliver products in free trade zones, and are reviewed and approved by the free-trade-zone management authority shall be exempted from profit-seeking enterprise income tax on the income from selling such products.
When profit-seeking enterprises from foreign countries, the Mainland Area, Hong Kong, or Macao without a fixed place of business in the ROC purvey commodities certified by a recognized international metal futures exchange and ratified by the competent authority, or the commodities of the same tariff number as those described above, and when the commodities are stored in places of FTZ enterprises approved by the FTZ management authority, the income from sales to domestic and/or overseas customers shall be exempted from profit-seeking enterprise income tax without the need to apply for such tax exemption, and the enterprises are exempted from filing an income tax return for such income in accordance with the Income Tax Act.
The regulations governing the scope of preliminary or auxiliary business activities, purchase, import, storage, or delivery of products, the approved application period as stipulated in paragraph 1; the application scope and specific conditions, authorized and approval authorities as stipulated in paragraph 2; as well as application procedures, approval, abolishment and other relevant requirements specified in both the preceding two paragraphs shall be prescribed by the competent authority in consultation with the Ministry of Finance. The profit-seeking enterprise income tax exemption stipulated in paragraph 1 and paragraph 2 shall remain in effect until 31st December 2042.
Paragraph 1 to paragraph 3 promulgated on 28th December 2018 shall enter into force from the profit-seeking enterprise income tax return for the year 2019.
For cases which have been approved in accordance with paragraph 1 prior to the promulgation of this Article on 28th December 2018, the approved application period shall end by 31st December 2021.
For cases which have been applied but not been approved prior to the promulgation of this Article on 28th December 2018, the income tax exemption for the year 2018 and the previous years shall be applicable to paragraph 1 prior to the promulgation; the income tax exemption for the year 2019 and following years shall be applicable to paragraph 1 after the promulgation.

Where the goods shipped into a free trade zone by a free-trade-zone enterprise originally for its business operation are used for a non-operation purpose, it shall declare in advance to Customs or any appropriate authority for making supplemental payment of the customs duty, commodity tax, business tax, tobacco and alcohol tax, tobacco health and welfare surcharges, trade promotion service fees, and commercial port service fees.

For a free-trade-zone enterprise whose business is closed upon the approval of the management authority of the free trade zone, or whose operation permit has been annulled or revoked, in case of any shortfall of its machinery, equipment, and goods after stock check, the said free-trade-zone enterprise shall make supplemental payment of the customs duty, commodity tax, business tax, tobacco and alcohol tax, tobacco health and welfare surcharges, trade promotion service fees, and commercial port service fees leviable thereon.
Those involved in the application to operate a free-trade-zone enterprise and obtain the operation permit shall make supplemental payment of the deducted customs duties, commodity tax, business tax, trade promotion service fees, and harbor service dues leviable thereon during the establishment period if operation permit has been annulled or revoked by the management authority of the free trade zone. The self-use machinery and equipment imported from foreign countries and re-exported are not subjected to the restrictions within six(6) month period starting from the next day as operation permit has been annulled or revoked.
Those self-use machinery and equipment shall be supervised by the management authority of the free trade zone prior to making supplemental duties or re-exporting.

A bank may, in accordance with the Offshore Banking Act, apply by its head office with the authorities in charge of the relevant enterprise(s) concerned for permits of establishing an offshore banking unit with separate accounts within the free trade zone to conduct offshore banking business.

Financial institutions may, in accordance with the “Banking Act of the Republic of China,” Article 44 of the “Securities and Exchange Act,” “Foreign Exchange Regulation Act,” and the “Central Bank of the Republic of China (Taiwan) Act,” apply with the authorities in charge of the relevant enterprise(s) concerned for the establishment of a branch office within the free trade zone to conduct foreign exchange business upon the approval and designation of the Central Bank of the Republic of China (Taiwan).

An offshore banking unit may handle the business related to the letter of credit in foreign currency, advice, negotiation, import and export collection, foreign currency exchange and remittance, and foreign currency transactions of the free-trade-zone enterprises and shall be subject to such relevant rules as Article 5 of the “Offshore Banking Act,” provided however that each individual transaction shall not involve any domestic financial, economic, or commercial transaction nor New Taiwan Dollars.