Taiwan’s Northern District National Taxation Bureau said businesses selling only unprocessed fresh agricultural, forestry, fishery, and livestock products are exempt from business tax and may skip tax registration. Profits must still be reported under the Income Tax Act to avoid extra taxes and fines.
Taiwan’s Northern District National Taxation Bureau of the Ministry of Finance clarified that businesses exclusively engaged in the sale of unprocessed fresh agricultural, forestry, fishery, and livestock products, including by-products, are exempt from business tax and may be exempt from tax registration. However, they are still required to report their profits in accordance with the Income Tax Act to avoid additional taxes and penalties.
The Bureau explained that, under Articles 8(1)(19) and 29 of the Value-Added and Non-Value-Added Business Tax Act, the sale of unprocessed fresh agricultural, forestry, fishery, and livestock products, including by-products, is exempt from business tax.
Businesses that deal exclusively in such tax-exempt goods may also be exempt from tax registration. Nevertheless, the business profits derived from these activities must be reported as profit-seeking enterprise income under Article 14, Category 1 of the Income Tax Act and are subject to comprehensive income tax.
The Bureau urges businesses selling exclusively unprocessed fresh agricultural and fishery products to report their business income properly. Any unreported income can be voluntarily declared and paid, including interest, before an audit or investigation by the tax authorities or personnel designated by the Ministry of Finance. In such cases, penalties may be waived under Article 48-1 of the Tax Collection Act.
This announcement was made on 30 March 2026.
