財政收支劃分法

This Act is adopted in accordance with the relevant articles of Chapters X and XIII of the Constitution of the Republic of China (Taiwan).

The allocation, adjustment, and classification of revenues and expenditures for public finance by governments at all levels in the Republic of China shall be as prescribed in this Act.

1The divisions of the national system for government revenues and expenditures are as follows:

21. The central government.

32. Special municipalities.

43. Counties and county-level cities.

54. Townships/cities.

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Oversight of revenues and expenditures in public finance at each level of government shall be as provided for by law.

Tax levies are divided into national, special municipality, and county (or county-level city) taxes.

Legislation by special municipalities, counties or county-level cities, and townships/cities for the purpose of levying taxes is restricted to legislation for which this Act expressly provides, and shall conform with the Act Governing Local Tax Regulations.

1The following taxes are national taxes:

21. Income tax.

32. Estate and gift tax.

43. Customs duties.

54. Business tax.

65. Commodity tax.

76. Tobacco and alcohol tax.

87. Securities transaction tax.

98. Futures transaction tax.

10Eleven percent of the total revenue from the income tax of Subparagraph 1 of the preceding paragraph, the total revenue from the business tax of Subparagraph 4 after the deduction of one point five percent collection cost and of duly appropriated Uniform Invoice Prizes, and 10 percent of the total revenue from the commodity tax of Subparagraph 5 shall be redistributed from the central government to the special municipalities, counties and townships/cities.

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1The following taxes are special municipality and county and county-level city taxes:

21. Land tax, which includes the following:

3(1) Land value tax

4(2) Agricultural land tax

5(3) Land value increment tax.

62. House tax.

73. Vehicle license tax.

84. Deed tax.

95. Stamp tax.

106. Amusement tax.

117. Special tax levies.

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1The redistribution of tax revenues pursuant to Paragraph 2, Article 8 shall be based on the transparent, fair, and standardized methods. The local governments that receive the redistributions shall recognize the amounts so received as current-year tax revenues.

2Ninety-six percent of the total amount of tax funds redistributed by the central government to special municipalities, counties and county-level cities, and townships/cities pursuant to Paragraph 2, Article 8 shall be recognized as "general centrally-funded tax revenues." The remaining four percent shall be recognized as "special centrally-funded tax revenues" and provided to local governments that receive the distributions as necessary funding support for use in emergencies and other major matters. The funds will be distributed by the Executive Yuan based on actual circumstances.

3The amount allocated to each special municipality, county and county-level city, and township/city from the general centrally-funded tax revenues shall be calculated based on the following indices and weights:

41. Ninety point five percent of the funds that can be provided for distribution shall be allocated to special municipalities, counties and county-level cities (excluding offshore islands) according to the following weights:

5(1) The ratio of the average amount of business sales within each special municipality, county and county-level city in the recent three years to the total average amount of all special municipalities, counties and county-level cities (excluding offshore islands). The weight is 30 percent.

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1No government at any level may impose a double tax or a surtax on the tax levies of another government at the same level or any other level. This restriction does not apply, however, to the governments of special municipalities, counties and county-level cities when, to raise the necessary financing to manage self-government matters, they impose a surtax in accordance with the Act Governing Local Tax Regulations.

2No local government at any level may impose an entry tax or a transit tax on goods that enter or pass through its jurisdiction.

A government at any level, in order to meet special needs, may impose a provisional tax levy through legislation by the representative body at that level.

1A government at any level, having obtained permission by law, may operate a monopoly public utility, and may duly impose a franchise fee and permit a private party to operate the utility.

2The area supplied by a monopoly public enterprise operated by a local government shall be limited to the area under that government's jurisdiction, provided that a stipulation to expand the area supplied may be made by agreement with the local government of a neighboring area.

The central government, in order to increase national treasury revenues or to control the costs of production, may sell monopoly goods in accordance with the provisions of law, and may manufacture such goods.

1When there is construction of roads, levees, ditches, harbors and piers, or other land and water improvement projects within the jurisdiction of a government at any level, that government may collect fees from any real estate or ship that directly benefits from the construction.

2Collection of fees on construction profits under the preceding paragraph shall be limited to the actual amount of expense directly and indirectly incurred in the given construction project. If the expense for the construction is financed by borrowing, the collection of the fees shall be limited to the amount required for full payment of the borrowed funds and the interest on those funds. However, if continued maintenance is required for the given construction project, fees may continue to be collected in accordance with the required maintenance.

3Construction projects and the collection of fees on construction profits may be undertaken only after the requisite budgetary procedures have been carried out.

Except as otherwise provided by law, any lawfully collected criminal or administrative fine, confiscated property, or revenue from compensation shall be placed in the respective government treasury of the given level of government.

The charges and fees of judicial bodies, examination bodies, and the administrative agencies at various levels of government shall be collected as provided by law. If not provided by law, charges and fees may not be collected except by the prior passage of a resolution by the relevant legislative or representative body approving the specific charge or fee.

Except as otherwise provided by law, charges and fees collected by any public enterprise organization shall be approved first by the highest-level authority for the given enterprise and placed in the government treasury of the given level of government after the requisite budgetary procedures have been carried out.

A government at any level and the agencies subordinate to it, when lawfully engaging in trust management or managing a trust on behalf of another party, may collect trust management fees.

Except as otherwise provided by law, interest generated by assets owned by a government at any level, the sale price of assets sold by it, and capital recovered by it, shall be placed in the government treasury of the given level of government.

The sale of real estate or important assets by any level of government shall be done in accordance with the law. Except as otherwise provided by law, items generated by assets owned by a public agency, or surplus or waste items among the items used by that agency, may be sold at the current market price after a request to do so has been approved by a superior competent authority.

Except as otherwise provided by law, operating surpluses, donations and contributions received, and other lawful revenues received at any level of government shall be placed in the respective government treasury of that level of government.

1The central government, in seeking balanced development of the national economy, may consider providing subsidies to local governments, provided that such subsidies are limited to the following:

21. Programs whose benefits will be broad in scope, while also having goals that are comprehensive in nature.

32. Infrastructure projects whose scope extends beyond a special municipality, county or county-level city, or spans two or more counties or county-level cities.

43. Major infrastructure projects that will serve in a demonstration capacity.

54. Matters in which the cooperation of the local government is needed for major central government policies or infrastructure projects.

6Regulations governing subsidies provided under each of the subparagraphs of the preceding paragraph shall be adopted by the Executive Yuan.

7The amount of the General Grant provided to local governments by the central government shall not be less than the budgeted amount from the year before the amended Act was enforced.

A county government, in seeking balanced development of townships/cities, may consider providing subsidies to those townships/cities. The regulations governing such subsidies shall be separately adopted by the county government.

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1Any higher-level government, to respond to special needs, may obtain assistance funding from lower-level governments with relatively strong fiscal capabilities.

2The "assistance funding" of the preceding paragraph shall be recognized in the budgets of each of the given lower-level governments.

1No government at any level may issue government bonds, or engage in borrowing from a domestic or foreign source with a repayment period of one year or more, except as provided by law or by passage of a resolution in the relevant legislative body.

2The limits on outstanding debt in the form of government bonds or loans under the preceding paragraph shall be determined in accordance with the Public Debt Act.

3A local government at any level shall first receive approval from the central government before issuing government bonds or borrowing funds abroad.

No expenditure may be made by a government at any level except through requisite budgetary procedures.

1Except as otherwise provided by other laws, the standards for planning, compilation, and common expenses with respect to the revenues and expenditures in annual general budgets, additional budgets, and special budgets at all governmental levels shall be in accordance with the Principles for Planning and Compilation of Central and Local Government Budgets adopted by the Executive Yuan.

2When a local government fails to comply with the Principles for Planning and Compilation of Central and Local Government Budgets under the preceding paragraph, or when it is allowed by law to collect revenues from a particular source but fails to do so, its superior government shall consider reducing the budgeting or allocation of subsidies to that local government as merited by the actual circumstances; when a local government has a record of successfully developing sources of revenue, its superior government may consider increasing subsidies to it.

The expenses incurred by persons exercising political powers within the administrative regions of governments at all levels shall be borne by their respective governments.

1The division of expenditures at various levels of government is as follows:

21. Expenditures arising from legislation enacted and administered by the central government are the responsibility of the central government.

32. Expenditures arising from legislation enacted and administered by special municipalities are the responsibility of the special municipalities.

43. Expenditures arising from legislation enacted and administered by counties and county-level cities are the responsibility of the counties and county-level cities.

54. Expenditures arising from legislation enacted and administered by townships/cities are the responsibility of the townships/cities.

6If the matters under Subparagraphs 1 and 3 of the preceding paragraph must be administered by a lower-level government, then except as otherwise provided by law, the expenses of administration for the commissioned matters shall be borne by the commissioning agency; for self-government matters, expenses shall be borne by the given local government.

7When the above matters are administered jointly by two or more governments at the same or at different levels, whether the central government or the governments of special municipalities, counties or county-level cities, or townships/cities, a proportional share of the cost of administration shall be borne respectively by the central government or by each respective special municipality, county or county-level city, or township/city.

1A local government shall give priority to funding for each of the following expenditures from its basic fiscal revenues and other recurring revenues:

21. The allotted number of persons on its staff and the personnel and related expenses officially ratified by a higher level of government.

32. General recurring expenditures, management and upkeep of public facilities, and expenses it is obligated to bear by law.

43. Expenses for basic local facilities or small-scale construction.

54. Expenses for other local matters that the local government is obligated to carry out.

6When a local government, after complying with the provisions of the preceding paragraph, finds its revenues are insufficient for the required expenditures, it shall give priority to the above expenditures when using the centrally-funded tax revenues that have been allocated to it.

When the administration of matters by a government at any level is delegated to a government at the same or another level, the related expenses shall be borne by the delegating agency.

When a government or legislative body at any level enacts, adopts, or amends laws or self-governing regulations, that would lead to a reduction in its revenues, it shall at the same time make sufficient plans for an alternative source of revenue; if it must increase its fiscal burden, it shall make sufficient plans in advance for related expenses, or, at the time of legislation, shall expressly provide for a corresponding source of revenue.

1The date of enforcement of Articles 8, 12, and 16-1 as amended on January 13, 1999 shall be determined by an order of the Executive Yuan.

2The date of enforcement of Article 16-1 as amended on November 21, 2025 shall retroactively come into effect on March 21, 2025.

This Act, unless a separate date of enforcement has been provided, shall be enforced from the date of promulgation.