民間機構參與重大公共建設適用投資抵減辦法

These Regulations are enacted pursuant to Paragraph 3, Article 37 of the Act for Promotion of Private Participation in Infrastructure Projects (hereinafter referred to as the “Act”)

1The terms as used in these Regulations shall be defined as follows:

21.“Credit against profit-seeking enterprise income tax payable for the current year” shall mean credit against tax payable calculated by multiplying the applicable tax rate by profit-seeking enterprise taxable income for the current year as determined by the tax collection authority, and credit against additional tax payable calculated by applying 10% on the undistributed earnings for the previous year as determined by the tax collection authority.

32.“Equipment or technology” shall mean equipment or technology for construction or operation, and equipment or technology for pollution control.

43.“Equipment for construction or operation”:

5i.“Equipment for construction” shall mean the equipment specified for use in the construction of major infrastructure projects.

6ii.“Equipment for operation” shall mean equipment and primary buildings of major infrastructure projects required for rendering services provided by the projects.

74.“Technology for construction or operation” shall mean that which satisfies one of the following requirements:

8i. Patents or know-how used for equipment for construction or operation under the preceding subparagraph.

9ii.Know-how or package software required for computer-aided design or management.

105.“Equipment for pollution control” shall mean equipment required to process, detect or monitor pollution sources or waste discharged or recycled in the course of sorting, distributing, or operating process to comply with acts or regulations governing environmental protection, including equipment or civil engineering facilities used for air pollution control, noise and vibration control, water pollution control, soil and ground water pollution control, waste disposal or recycling, environmental detection or monitoring.

116.“Technology for pollution control” shall mean patents or know-how exclusively used for the equipment under the preceding subparagraph.

127.“The current year” shall mean the year in which equipment or technology is delivered, or the year in which the payment for research and development and personnel training is made.

138.“Purchase” shall mean where a private institution participating in a major infrastructure project acquires equipment or technology through buying from others, or by manufacturing or constructing such equipment or technology itself or others.

149.“Cost of purchase”:

15i.In the case of buying from others, the term shall mean the prices of equipment or technology, inclusive of transportation fee and insurance fee, but excluding any other fee paid for acquisition of such equipment or technology.

16ii.In the case of manufacturing by itself, the term shall mean the actual cost incurred in producing such equipment or technology.

17iii.In the case of manufacturing by others, the term shall mean the actual prices paid by the private institution for the production of the equipment or technology by others, inclusive of transportation fee and insurance fee；manufacturer who bears partial production cost by himself is also included, but excluding any other fee paid for acquisition of such equipment or technology.

18iv.In the case of constructing by itself, the term shall mean the actual cost incurred in constructing the primary buildings of the projects, inclusive of the cost of labor or materials and the expenses incurred in designing, manufacture, construction, and installation necessary to make such buildings fit for use in the operation of business.

19v.In the case of constructing by others, the term shall mean the actual construction cost, inclusive of the prices of the construction and the amount of the capitalized interests for the projects of consignors.

1If the total procurement cost of equipment or technology for construction or operation purchased by a private institution participating in a major infrastructure project for self use in the same taxable year exceeds NT$600,000, 8% of the procurement cost for equipment and 5% of the procurement cost for technology may be credited against its profit-seeking enterprise income tax payable for the current year.Where the amount of profit-seeking enterprise income tax payable for the current year is less than the creditable amount, the balance of such creditable amount may be credited against profit-seeking enterprise income tax payable in the following four years.

2Equipment for construction or operation eligible for tax benefit under the preceding paragraph shall be limited to brand-new equipment, the total amount of purchase shall be calculated based on the amounts assessed by the tax collection authority, not including the financial aid and investment from the government.

3Equipment or technology for construction or operation eligible for tax benefit under Paragraph 1 shall be purchased during the period of time starting from the date the construction or operation plan for a major infrastructure project is approved by the authority in charge till the day before the operation date; or, the restrictions of the periods of purchase above-mentioned shall not be applicable, if the concession agreement stipulated that such equipment or technology shall be purchased after the date of actual operation.

1If the total procurement cost of equipment or technology for pollution control purchased by a private institution participating in a major infrastructure project for self use in the same taxable year exceeds NT$600,000, 13% of the procurement cost for equipment and 5% of the procurement cost for technology may be credited against its profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable for the current year is less than the creditable amount, the balance of such creditable amount may be credited against profit-seeking enterprise income tax payable in the following four years.

2Equipment for pollution control eligible for tax benefit under the preceding paragraph shall be limited to brand-new equipment, the total amount of purchase shall be calculated based on the amounts assessed by the tax collection authority, not including the financial aid and investment from the government.

3Equipment or technology for pollution control eligible for tax benefit under Paragraph 1 shall be purchased during the period of time starting from the date the construction or operation plan for a major infrastructure project is approved by the authority in charge till the day before the operation date; or, the restrictions of the periods of purchase above-mentioned shall not be applicable, if the concession agreement stipulated that such equipment or technology shall be purchased after the date of actual operation.

1For any private institutions eligible for the application of tax credit under these Regulations, the procurement of equipment and technology for self use shall be pursuant to the following deadlines and procedures:

21.The procured equipment or technology shall be delivered within five years starting from the date the construction or operation plan for a major infrastructure project is approved by the authority in charge. In the event that delivery cannot be made within the time limit due to special circumstances, an application for extension of the time limit, within the time limit with reasons clearly indicated, may be filed with the authority in charge of the major infrastructure project for forwarding to the central competent authority in charge for confirmation and proceeding to the Ministry of Finance in due process for approval.

32.An application for issuance of a tax credit certificate shall be filed with the authority in charge of the major infrastructure project within six months from the day after the delivery date. The scheduled date of installation or date of use of the equipment for construction or operation, or pollution control procured for self use shall be indicated in the letter of application.

43.While filing income tax return of the profit-seeking enterprise with the tax collection authority, a private institution shall provide the tax credit certificate under the preceding subparagraph, copies of the original voucher evidencing the procurement cost incurred, and if there are the primary buildings of the projects, the construction cost breakdowns, for the assessment of the investment credit against income tax.

5The date of delivery under Subparagraph 1 of the preceding paragraph shall be decided as follows:

1The term “purchase” as used in these Regulations shall include purchases with payment by installments and financial leases.

2If there are more than two leasees of the financial lease under the preceding paragraph, the portion of the payment of each leasee shall be equal to the rights of usage or ownership acquired.

1If the total R&D expenditure invested by a private institution participating in a major infrastructure project in the same taxable year exceeds NT$1,500,000, or exceeds 2% of its net business revenue, 20% thereof may be credited against its profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable for the current year is less than the creditable amount, the balance of such creditable amount may be credited against profit-seeking enterprise income tax payable in the ensuing four years.

2The term “R&D expenditure” as used in the preceding paragraph includes the following expenses for research or improvement of construction or operation techniques:

31.Salary for full-time personnel of R&D units specializing in R&D tasks.

42.Expenses on research or improvement of construction or operation techniques spent by construction or operation units.

53.Expenses on consumable items, raw materials and samples used by R&D units for which complete purchase and requisition records are maintained and which can be cross-checked with research projects, records, or reports.

64.Cost for procurement of new instruments and equipment for research purposes exclusively provided to R&D units.

75.Depreciation or rents of buildings exclusively used by R&D units.

1If the total personnel training expenditure invested by a private institution participating in a major infrastructure project in the same taxable year exceeds NT$300,000, 20% thereof may be credited against its profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable for the current year is less than the creditable amount, the balance of such creditable amount may be credited against profit-seeking enterprise income tax payable in the ensuing four years.

2The term “personnel training expenditure” as used in the preceding paragraph shall mean the following expenses paid by a private institution for training to enable its employees to undertake the participation in a major infrastructure project, or for conducting training programs related to its business, or assigning its employees to participate in such programs:

31.Instructors’ fees and travel expenses;

42.Trainees’ travel expenses, and charges paid to training units;

53.Expenses for training materials, materials for practice, stationery, medical care, insurance, training emulation, books/magazines, board during training periods, training sites and training equipment with a service life of less than two years;

64.Technique evaluation charges;

75.Depreciation and rents of buildings at which occupational training institutions registered with and recognized by the Council of Labor Affairs of the Executive Yuan are situated, and salaries of personnel in charge of educational training; and

A private institution desirous of applying for the application of Subparagraphs 8 and 9, Paragraph 2 of Article 7, and Subparagraph 6, Paragraph 2 of the preceding article to its expenditures, shall apply to the central competent authority in charge of specific enterprises and the Ministry of Finance for an approval of such application in the year in which such expenditures are incurred. Upon the authority’s approval, such application shall start from the year of incurring such expenditures. If such application for approval is filed after the incurring year of expenditures, the requested application shall start from the year of application, upon the approval of the authority.

The expenditures invested by a private institution in R&D and personnel training, with regard to which tax credit is applicable, shall be calculated based on the amounts assessed by the tax collection authority.

1A private institution that has invested in R&D or personnel training pursuant to these Regulations shall fill in the stipulated forms at the time of filing profit-seeking enterprise income tax return of the current year, and submit these forms together with the following certifying documents to the tax collection authority where the company is located for the assessment of the amount of tax credit. If the tax collection authority finds any doubtful content or related matter in the expenditures declared by the company when assessing the amount of tax credit requested by the company, the authority may request the central competent authority in charge of specific enterprises or the authority in charge of the major infrastructure project to assist in deciding the amounts.

21.For R&D expenses:

3i.The institution’s organization chart and roster of R&D personnel;

4ii.Complete records of purchases and requisitions of consumable equipment and materials, raw materials and samples used by R&D units for research purposes;

5iii.List of instruments/equipment purchased in the current year solely for R&D purposes;

6iv.Layout plans of R&D units and written explanation of the ratio of the area occupied by them to the total area of the buildings;

7v.Contracts or certifying documentation regarding purchase or use of patents, know-how or copyrights and calculation statements of amortization or payments;

1If any equipment or technology, or instruments/equipment for research purposes exclusively provided to R&D units, with respect to which credit against profit-seeking enterprise income tax has been applied under these Regulations, fall under one of the following conditions, the institution concerned shall pay to the tax collection authority the credited profit-seeking enterprise income tax, plus interest to be calculated on a daily basis at the fixed interest rate of postal savings for a one-year time deposit from the date after the deadline for filing the tax return for the current year to the date of supplemental payment of such tax:

21.If the equipment or technologies can not be completely installed or used before the scheduled date, and no application for extension of time limit, with proper reason indicated, is filed with the authority in charge of the major infrastructure projects and forwarded in due process to the tax collection authority before the deadline.

32.If any equipment or technology is sublet, leased, resold, returned, auctioned, stolen, reported unserviceable, recalled by others according to Regulations, or its original purposes changed within three years from the date after the delivery date.

43.If any instrument or equipment for research purposes exclusively provided to R&D units is sublet, leased, resold, returned, auctioned, stolen, reported unserviceable, recalled by others according to Regulations, or not exclusively used by R&D units within three years from the date after the delivery date.

5If the instrument or equipment is declared unserviceable as referred to in Subparagraphs 2 and 3 of the preceding paragraph due to force majeure such as earthquakes, storms, floods, droughts, plagues of insects, fires, wars, etc., the institution concerned shall pay to the tax collection authority the credited profit-seeking enterprise income tax, plus interest in the above-mentioned paragraph shall not apply.

1The following rules shall apply to a private institution whose investment concession agreement was terminated by the authority in charge due to the stipulation of Articles 52 or 53 of the Act:

21.If the private institution is not responsible for the termination of the concession agreement, the profit-seeking enterprise income tax credits under these Regulations not yet credited shall be inapplicable.

32.If the private institution is responsible for the termination of the concession agreement, not only shall the profit-seeking enterprise income tax credits under these Regulations not yet credited become inapplicable, but also, with respect to such credit against profit-seeking enterprise income tax as may have already been credited under these Regulations, the institution concerned shall pay to the tax collection authority the credited profit-seeking enterprise income tax, plus interest to be calculated on a daily basis at the fixed interest rate of postal savings for a one-year time deposit from the date after the deadline for filing the tax return for the current year to the date of supplemental payment of such tax.

4After completing the total investments of a major infrastructure project, a private institution which was recognized by the authority in charge as not complying with the terms of the scope of the major infrastructure projects specified in Paragraph 2 of Article 3 of the Act, shall pay to the tax collection authority the full amount of the credited profit-seeking enterprise income tax, plus interest to be calculated on a daily basis at the fixed interest rate of postal savings for a one-year time deposit from the date after the deadline for filing the tax return for the current year to the date of supplemental payment of such tax.

5

If a false evidence is found by the tax collection authority that the purchase of equipment or technology, or R&D and personnel training expenditure, with respect to which credit against profit-seeking enterprise income tax has being applied under these Regulations, the case shall be subject to the provisions for tax evasion or omission provided in the Income Tax Act and Tax Collection Act.

If the equipment or technology purchased, or R&D and personnel training expenditure, with respect to which credit against profit-seeking enterprise income tax has being applied, according to provisions of other Acts, these Regulations shall not apply again to the same.

1The following rules shall apply to the private institutions participating in major infrastructure projects and applying for income tax credit for purchasing equipment and technology:

21.Paragraph 4 of Article 5 shall apply if a applicant applies for “whole set” certificate.

32.The Regulations at the time of the approval for each phase project shall apply if a private institution engages in separate phase project for construction or operation as provided in Paragraph 5 of Article 5.

43.The Regulations at the time of delivery shall apply if the event is excluded from the preceding two subparagraphs.

These Regulations shall come into force from the date of promulgation.