In recent years, "non-alcoholic beer" products have appeared on the market. Although non-alcoholic beer may not be subject to the tobacco and alcohol tax, if they meet the requirements of machine-made cool drinks specified in Article 8 of the Commodity Tax Act, domestic manufacturers are still required to conduct the commodity tax manufacturer registration and the product registration before they can produce the products.
    According to the National Taxation Bureau of Kaohsiung, Ministry of Finance, in accordance with the provisions of Subparagraph 3, Article 2 of the Tobacco and Alcohol Tax Act, taxable alcohol products refer to beverages having an alcohol content in excess of 0.5 percent by volume, or un-denatured ethyl alcohol and other ethyl products which can be used for manufacturing or preparing the aforesaid beverages. Therefore, if the alcohol content of non-alcoholic beer does not exceed 0.5%, it is not considered an alcohol product under the Tobacco and Alcohol Tax Act. Conversely, if the alcohol content exceeds 0.5%, tobacco and alcohol and tax shall be levied.
    The Bureau further stated that although non-alcoholic beer with an alcoholic content of less than 0.5% is not subject to tobacco and alcohol tax, if the total amount of solids contained does not reach 18% of the content, it is referred to as "other beverages" under Subparagraph 2, Paragraph 1, Article 8 of the Commodity Tax Act and shall be subject to commodity tax. Therefore, domestic manufacturers intending to produce non-alcoholic beer with an alcoholic content of less than 0.5% shall conduct the commodity tax manufacturer registration and the product registration in National Taxation Bureau before starting production, and file and pay the commodity tax in accordance with the prescribed deadlines to avoid penalties. If there are any questions, please call the toll-free at 0800-000321.

Contact: Mr.Lin, Revenue Officer of the Third Examination Division

TEL:07-7256600 ext.8611