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Tax Expenditure Assessment Status of Tax Reliefs whose Regulations were Passed form 2015 to Present

 

Tax Relief Regulations The Content Related to Tax Relief Competent Authority The Date of Enforcement Reports of Tax Expenditure Assessment Status
Article 5 of Vehicle License Tax Act The municipal or county (city) government is authorized to exempt completely electric-operated vehicles from the vehicle license tax for the following 6 years from January 6, 2012. Ministry of Economic Affairs 1-6-2012 Re-evaluation complete.
Article 22-16 of Offshore Banking Act
Offshore insurance business operated by offshore insurance branches shall be exempt for a period of 10 years from profit-seeking enterprise income tax, business tax, stamp tax and income tax withholding. However for insurance contracts signed within the aforementioned period, the exemption period shall be extended until the expiration of the validity period of the insurance contract and shall not exceed 30 years.
Financial Supervisory Commission 2-6-2015 Re-evaluation complete.
Paragraph 1, Article 12 of Commodity Tax Act Purchasing rehabilitation buses for the disabled shall be exempted from commodity tax. Ministry of Health and Welfare 2-6-2015 Re-evaluation complete.
Purchasing Low chassis buses, gas buses, hybrid oil and electric buses and electric buses shall be exempted from commodity tax. Ministry of Transportation and Communications 2-6-2015

Under reviewing.

Paragraph 5, Article 12 of Commodity Tax Act
Wheelchair accessible vehicle which conforms to the Vehicle Safety Test Standard and were purchased within 5 years from 22 January 2015 shall be exempted from the commodity tax.
Ministry of Health and Welfare 2-6-2015 Re-evaluation complete.
Article 7 of The Motion Picture Act
A private company invest in domestically produced motion picture production enterprise of a definite size, may credit a maximum of 20 percent of the amount paid for the shares acquisitions against the amount of business income tax payable each year within a period of five years from the then-current year.
Ministry of Culture 6-12-2015 Re-evaluation complete.
Article 17 of the Museum Act
Donations of objects of National Treasure as designated by the Cultural Heritage Preservation Act are not limited by the provisions of Subparagraph 4, Paragraph 1 of Article 12 of the Income Basic Tax Act.
Ministry of Culture 7-1-2015

Re-evaluation complete.

Part of Customs Import Tariff Tariff No. 84129000, No. 85016490, No. 85023100, and No. 85023990. Ministry of Economic Affairs 12-11-2015 Re-evaluation complete.
Article 10 of Statute for Industrial Innovation A company investing in research and development activities can choose to claim the tax credit within three years using a 10% tax credit rate or within the current year using a 15% tax credit rate. Ministry of Economic Affairs 1-1-2016 Re-evaluation complete.
 
Article 12-1 of Statute for Industrial Innovation
1.An ROC individual or company may deduct 200 percent of the R&D expenses from the amount of revenue. A company has the option of choosing one of two choices: a Tax Credit for R&D or a 200 Percent Deduction of R&D Expenses.
2.Where an ROC individual or company owns a license to use his/her/its intellectual property rights in his/her/its own R&D results and exchanges with a company in return for stock of the company which acquires these intellectual property rights, the individual or company may opt to defer assessment of the income tax on is/her/its income until the year of transfer or the fifth year after the year he/she/it ubscribes for the shares.
Ministry of Economic Affairs 1-1-2016 Re-evaluation complete.
 
Article 19-1 of Statute for Industrial Innovation
Where a company employee acquires stock-based employee compensation, the employee may opt to defer the assessment of the income tax payable under the Income Tax Act on up to an annual total of NT$5 million worth of the acquired shares as calculated at the market price prevailing in the year of acquisition until the year of transfer or the fifth year after the year he/she acquires the shares.
 
Ministry of Economic Affairs 1-1-2016 Re-evaluation complete.        
Paragraph 2 of Article 36-2 of Act for Development of Small and Medium Enterprises Small and medium enterprises may claim 130% of the incremental salary as deductible expenses. Ministry of Economic Affairs 1-1-2016 Re-evaluation complete.
 
Paragraph 3 of Article 36-2 of Act for Development of Small and Medium Enterprises Small and medium enterprises may claim 130% of the incremental salary as deductible expenses. Ministry of Economic Affairs 1-1-2016 Re-evaluation complete.
Article 12-5 of Commodity Tax Act
A person who scraps or exports his/her passenger sedan, truck or dual-purpose vehicle which had left the factory at least 6 years purchases a new vehicle, the commodity tax of such new vehicle shall be reduced by NT$50,000.
A person who scraps or exports his/her motorcycle below 150cc cylinder volume which had left the factory at least 4 years purchases a new motorcycle, and completes registration, the commodity tax of such new motorcycle shall be reduced by NT$4,000.
Ministry of Economic Affairs 1-8-2016 Re-evaluation complete.
Part of Customs Import Tariff Tariff No. 85016410 and No. 85023910. Ministry of Economic Affairs 5-20-2016 Re-evaluation complete.
Article 100 of the Cultural Heritage Preservation Act
Article 100 of the Cultural Heritage Preservation Act added provisions as follows:“Transfer for inheritance of the ownership of a historic building, commemorative building, or archaeological site and the land upon which it is erected shall be exempt from estate tax.”
Ministry of Culture 7-27-2016 Re-evaluation complete.
Article 47-1 of Agricultural Development Act
Farms and agricultural cooperatives legally registered with the competent authority by farmers shall be exempted from profit-seeking enterprise income tax for selling self-produced primary agricultural products.
Council of Agriculture, Executive Yuan 11-11-2016 Under reviewing.
Article 42 of the Civil Servants Election And Recall Act
The recall expenditures paid by the leading proposer and the person being recalled within the prescribed maximum campaign fund may be listed in the listing deduction quota of the annual declaration of comprehensive income tax of the day when the declaration of recall is not established or the very year of the voting day.
Ministry of The Interior 12-14-2016 Re-evaluation complete.
Paragraph 1, Article 2-1 of Securities Transaction Tax Act
The securities transaction tax levied on corporate bonds and finance bonds shall be suspended during the period from January 1, 2010 to December 31, 2026.
Financial Supervisory Commission 1-1-2017 Re-evaluation complete.
Paragraph 2, Article 2-1 of Securities Transaction Tax Act
The securities transaction tax levied on the beneficial certificates of the listed or OTC-listed exchange-traded funds(ETF) which mainly invested in bonds shall be suspended during the period from January 1, 2017 to December 31, 2026.
Financial Supervisory Commission 1-1-2017 Re-evaluation complete.
Article 15 and 23 of the Housing Act
Article 15:
For house owners that lease their house to persons receiving rental subsidies from the competent authority or other agencies in accordance with the Housing Act, their rent income shall be exempt from income tax. The amount of rent income exempted from income tax shall not exceed NT$10,000 per house each month.

Article 23:
For house owners who lease their house for social housing, long-term care services, child-care services, etc, income tax on their rental income may be reduced according to the following conditions:
1. Rental income is exempt from income tax, but limited to NT$10,000 per house each month.
2. If rental income exceeding the limitation of exemption, and the house owner cannot produce evidence of necessary loss and expenses for tax deduction, income tax on rental income shall be calculated at 60% of the rental income.
Ministry of The Interior 1-11-2017 Re-evaluation complete.
 
Article 49 of Act for the Development of Tourism
The land value tax and the housing tax leviable on the real estate for direct use by the tourist amusement enterprise, tourist hotel enterprise and hotel enterprise which have supported government tourism policy for raising the quality that have been approved by the central administrative authority during the operation period may be reduced or completely exempted at the discretion of the authorities.
Ministry of Transportation and Communications 1-11-2017 Re-evaluation by MOF.
Article 3 of Act For The Development Of Biotech And New Pharmaceuticals Industry The terms of “high-risk medical device” and the definitions of “emerging biotech and pharmaceutical product”have been amended, allowing for more enterprises to apply to. Ministry of Economic Affairs 1-20-2017 Re-evaluation complete.
Article 12-3 of Commodity Tax Act
Purchases a completely electric-operated automobiles or motorcycles and completed registration shall be exempted from the Commodity Tax. However, the exempted tax amount shall be limited to NT $ 1.4 million taxable value, the excessive portion is not exempted.
 
Ministry of Economic Affairs 1-28-2017 Re-evaluation complete.
 
Article 2-2 of Securities Transaction Tax Act The securities transaction tax of stock day-trading shall be levied at the rate of 1.5‰ based on the transaction amount. Financial Supervisory Commission 4-28-2017 Re-evaluation complete.
 
Article 9-1 of Commodity Tax Act The glass used exclusively for photovoltaic modules shall be exempted from commodity tax. Ministry of Economic Affairs 11-22-2017 Re-evaluation complete.
Article 10 of Statute for Industrial Innovation A limited partnership can apply for Tax Credit for R&D. Ministry of Economic Affairs 11-24-2017 Re-evaluation complete.
Article 12-1 of the Statute for Industrial Innovation
Limited partnerships may apply to the tax advantage stipultated in this Article. In addition, where an individual, enterprise, or limited partnership owns a license to use his/her/its intellectual property rights in his/her/its own R&D results and exchanges with a company in return for stock of the company which acquires these intellectual property rights, the individual, enterprise, or limited partnership may opt to defer assessment of the income tax on his/her/its income until the year of transfer.
 
Article 12-2 of the Statute for Industrial Innovation
Where an academic institution or research institution assigns or grants a license to use its intellectual property rights in its own R&D results to a company as payment for shares in the company, and distributes such shares to the inventors, the inventors may opt to defer assessment of the income tax on his/her income until the year of transfer.
Article 19-1 of the Statute for Industrial Innovation
Where a company employee acquires stock-based employee cpmpensation, the employee may opt to defer the assessment of the income tax payable up to an annual total of NT$5 million worth of the acquired shares as calculated at the market price prevailing in the year of acquisition or the year of shares disposable until the year of transfer.
 
Article 23-1 of Statute for Industrial Innovation This article provides tax incentive for venture capital enterprises in the form of limited partnerships.
Article 23-2 of the Statute for Industrial Innovation
Where an individual invests at least NT$1 million in one year in a domestic high-risk innovative startup which has been incorporated for less than two years, and acquires and holds the new shares issued by the company for two years, up to 50 percent of the investment may be deducted from the individual’s consolidated income for the year in which the second anniversary of such shareholding falls. The aggregate amount dedutible from an individual’s consolidated income each year shall not exceed NT$3 million.
 
Article 12-6 of Commodity Tax Act F
rom the effective date of this Article to 31 December 2019, a person who scraps his/her used truck which produced by the factory before 30 June 1999 and purchases a new truck, completes its registration, the commodity tax for the new truck shall be reduced by NT$50,000.

 
Environmental Protection Administration, Executive Yuan 11-24-2017 Re-evaluation complete.
Part of Customs Import Tariff Tariff No. 50020000, 50030010, 50030090 and No. 50040090.
Ministry of Economic Affairs 11-24-2017 Re-evaluation complete.
 
Article 5 of Vehicle License Tax Act
The municipal or county (city) government is authorized to exempt completely electric-operated vehicles from the vehicle license tax for the following periods of time, and report them to the Ministry of Finance for record.
(1) Completely electric-operated vehicles: from January 6, 2012 to December 31, 2021.
(2) Completely electric-operated motorcycles: from January 1, 2018 to December 31, 2021.

 
Ministry of Economic Affairs 12-8-2017 Re-evaluation complete.
Article 26-1 of the Sports Industry Development Act
If an individual makes a donation for an athlete approved by the central competent authority through the dedicated bank account, when that individual files their income tax return, they may list that donation as a tax deductible item and that amount is not included when calculating the total gift amount of the Estate and Gift Tax Act.
 
Ministry of Education 11-29-2017 Re-evaluation complete.
Article 17 and Article 18 of the Rental Housing Market Development and Regulation Act
Individual owners of residential units who commission their residential units to the rental housing management business or lease their housing to the rental housing subleasing business for subleasing, where the contract covenants residential uses for more than one year, may receive income tax benefits for the rents pursuant to the regulated conditions. The municipal governments and the county (city) governments may reduce the land value tax and housing tax on rental housing which fulfills the requirements conditions.
 
Ministry of The Interior 6-27-2017 Re-evaluation complete.
Amended Articles of the Income Tax Act
In order to establish a competitive, fair, and reasonable income tax environment complying with the trend of international taxation, increase the amount of four deduction items of individual income tax and reduce the highest individual income tax rate to 40%;The tax rate of the profit-seeking enterprise income tax is raised to 20%. However, profit-seeking enterprises with a taxable income of not more than NT$500,000 are subject to annual adjustments by 1% in 3 years. The surtax rate on undistributed earnings of companies is reduced to 5%. A sole proprietorship or a partnership is not required to pay profit-seeking enterprise income tax, and the profit deriving from the above business shall be included in the partners’ or the sole proprietor’s individual consolidated income. A new dividend tax regime is adopted by abolishing the partial imputation tax system on dividends, and the withholding rate on dividends derived by nonresidents is raised to 21%.
 
Ministry of Finance 1-1-2018 Re-evaluation complete.
Article 9 of the Act for the Recruitment and Employment of Foreign Professionals
Foreign special professionals who meet certain conditions may have half of their annual salaries over NT$3 million exempted from individual income tax, and shall not be subject to inclusion of the overseas income in basic income in accordance with the Income Basic Tax Act during their first three years of coming to work in ROC and staying for more than 183 days in a year.
 
National Development Council 2-8-2018 Re-evaluation complete.
Article 2-2 of Securities Transaction Tax Act
In the case a securities firm buys and sells listed or OTC-listed stock of the same kind and equal quantity through the same account on the same day during the period from April 28, 2018 to December 31, 2021, the securities transaction tax shall be levied at the rate of 1.5‰ based on the transaction amount for each sell order.
Financial Supervisory Commission 4-28-2018 Re-evaluation complete.
Article 19 of Institutional Long-Term Care Juridical Entities Act
Any institution that engages in long-term care services may apply for exemption from any land value increment tax if it completes registration as an institutional long-term care juridical entity in accordance with this Act within five years after this Act becomes effective and, during the aforesaid registration period, gratuitously transfers the land originally used for the purpose of long-term care services to the institutional long-term care juridical entity for the same purpose.
 
Ministry of Health and Welfare 1-31-2018 Re-evaluation complete.
Article 14 of the Act Governing Savings Accounts for Future Education and Development of Children and Youth The child and youth savings account interest shall be calculated at the floating board rate for one-year time savings deposits, as set by the account handling institution, and shall be exempt from individual income tax. The account handling institution is not required to withhold and declare income tax. Ministry of Health and Welfare 6-6-2018 Re-evaluation complete.
Article 8 of Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings
Where the reconstruction plan is submitted within five years after this Statute takes effect, after gaining approval from the municipal or county (city) competent authority taking into consideration local develeopment trends and financial condition, land and buildings within the area of the reconstruction plan may be eligible for the land value tax and house tax exemptions and reductions.
 
Ministry of The Interior 6-6-2018 Re-evaluation complete.
 
Article 19-1 of the Statute for Industrial Innovation
The employee who opts to defer the assessment of the income tax on stock-based employee compensation and stays employed at the same company for a period of two years or more may opt to include in their income for the year of transfer at the entire transfer price or the market price in the year of acquisition, whichever is lower, and then declare the assessment of income tax.
 
Ministry of Economic Affairs 6-22-2018 Re-evaluation complete.
Article 49 of Farmer Health Insurance Act All the accounting books, bills, and operating incomes and expenditures of this Act shall be exempted from tax. Council of Agriculture, Executive Yuan 11-1-2018 The competent authority is drafting the assessment report.
The Subparagraph 9 of Article 7 of Vehicle License Tax Act More than three vehicles now are allowed be exempted from the vehicle license tax for each social welfare institution or organization. Ministry of Health and Welfare 12-6-2017 Under reviewing.
Article 10-1 of Statute for Industrial Innovation
A company or a limited partnership investing in new smart machinery during the period from January 1, 2019 to December 31, 2021 and 5th generation mobile networks during the period from January 1, 2019 to December 31, 2022, of which the amount of expenditure will reach between NT$1 million and 1 billion in the same tax year, can choose to claim the tax credit within three years using a 3% tax credit rate or within the current year using a 5% tax credit rate.
 
Ministry of Economic Affairs 1-1-2019 Re-evaluation complete.
Article 29 of Act for the Establishment and Management of Free Trade Zones and Article 35 of International Airport Park Development Act Profit-seeking enterprises, which engage only in preliminary or auxiliary business activities in the ROC by the enterprises themselves or delegate free-trade-zone (FTZ) enterprises to purchase, import, store, or deliver products in FTZs, and are reviewed and approved by the FTZ management authority shall be exempted from profit-seeking enterprise income tax on the income from selling such products. Ministry of Transportation and Communications 1-18-2019 Re-evaluation complete.
Article 67 of Urban Renewal Act
Depending on the status of development of the area and whether the financial situation allows, the competent authority of the municipality or county (city) may extend the house tax reduction by half for up to ten years when the legal building owners before renewal in a redevelopment zone acquire buildings after renewal and the properties are not transferred within the two-year period of house tax reduction by half, and may reduce the land value increment tax and deed tax by 40% when original landowners and the implementer transfer property rights after joint construction by agreement.
 
Ministry of The Interior 1-30-2019 Re-evaluation complete.
Paragraph 4 of Article 14 of the Labor Pension Act
The designated workers may voluntarily submit pension deposits within 6% of their monthly income from professional practice. The voluntarily paid pension is not included in the tax on the annual income from professional practice.
 
Ministry of Labor 5-15-2019 Re-evaluation complete.
Article 12-6 of Commodity Tax Act
From 18th August, 2017 to 31st December, 2022, for a person who scraps his/her used truck produced by the factory before 30th September, 2006, purchases a new truck, and completes its registration, the commodity tax for the new truck shall be reduced by the maximum amount of NT$400,000.
 
Environmental Protection Administration, Executive Yuan 6-15-2019 Re-evaluation complete.
Article 11-1 of Commodity Tax Act
From 15th June, 2019 to 14th June, 2021, the commodity tax on new refrigerators, new air conditioners, and new dehumidifiers which are classified as first- or second-grade of the energy-efficient levels approved by the MOEA, and are not for resale, returned, or exchanged shall be reduced by the maximum amount of NT$2,000.
 
Ministry of Economic Affairs 6-15-2019 Re-evalution by MOF.
Part of Customs Import Tariff Tariff No. 22060010. Ministry of Finance 7-26-2019 Re-evaluation complete.
Amended Articles of the Statute for Industrial Innovation

The amendments to the Statute for Industrial Innovation extend the effective period of the tax incentives from December 31, 2019 to December 31, 2029. In addition, a new measure is provided that the undistributed earnings of a profit-seeking enterprise used for substantive investment shall be included as a deductable item for the calculation of the undistributed surplus earnings.

Ministry of Economic Affairs 7-26-2019 Re-evaluation complete.
 

 

P.S.
1.The source of tax expenditure assessment is competent authority.
2.If there is any question, call the authority.
Release date:2019-09-09 Last updated:2019-12-16 Click times:891