Importers must honestly declare all related royalties paid to avoid post-clearance tax issues.

• Importers should honestly declare any royalties related to imported goods in the declared taxable price
• Taipei Customs emphasizes the importance of including royalties paid as part of the transaction conditions in the taxable price to avoid additional taxes later
• According to Article 29(3)(3) of the Customs Act, royalties paid by the buyer as part of the transaction conditions should be included in the taxable price
• Royalties refer to payments related to intellectual property rights paid in connection with imported goods, excluding costs for obtaining rights to reproduce imported goods domestically
• Importers should report any royalties not included in the price honestly and can request corrections from the original customs office if needed
• Importers unsure about including royalties in the taxable price can apply for pre-audit from the Customs Administration of the Ministry of Finance before importing goods

Source: mof.gov.tw

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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