Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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F

250.0000 FOREIGN CONSULS—Regulation 1619

Annotation 250.0097

(a) SALES TAX

250.0097 Taiwan Diplomats. In 1979, governmental relations between the United States and the governing authorities of Taiwan were terminated. Congress then passed the Taiwan Relations Act to promote the continuation of commercial, cultural, and other relations between the United States and the people of Taiwan. A nonprofit corporation called the American Institute in Taiwan was established and functions much like a foreign embassy. The Act exempted the Institute from any taxes imposed by any state or local taxing authority. Pursuant to the Act, the U.S. Department of State issues a Tax Exemption Card to members of the Institute stating that the holder is exempt from all sales taxes.

Since the State Department has identified the members of the American Institute in Taiwan as immune from state and local taxation pursuant to the Taiwan Relations Act, neither sales nor use tax applies to the sale or use of personal property sold to Taiwan Diplomats holding a Tax Exemption Card issued by the U.S. Department of State. 1/12/89.