商業會計法

1（Scope of Applicability）

2Accounting affairs for business entities must be handled according to the Business Entity Accounting Law (referred to as the "Law").

3Accounting affairs for public-owned businesses must be handled according to the Law unless otherwise stipulated by other laws.

1（Scope of Business and Accounting Affairs）

2The term “business” as referred to in this Law refers to a profit-making entity with its scope defined by the Business Registration Act, the Company Act and other relevant laws.

3The term “accounting affairs of a business” as referred to in this Law refers to recognition, measurement, recording, classification, and summarization of accounting affairs undertaken by a business, as well as preparation of financial statements.

1（The Competent Authority）

2The term "the Competent Authority" as referred to in this Law refers to the Ministry of Economics Affairs where the central government is concerned; the Government of the Special Municipality where the Special Municipality is concerned; or the Government of County (City) where the County (City) is concerned.

3The competent authorities’ responsibilities are allocated as follows:

41. The Central Competent Authority:

5(1) Formulation and promotion of laws and policies related to business accounting.

6(2) Management of business accounting affairs of businesses registered with it.

72. The Competent Authority of a Municipal Government: management of business accounting affairs of businesses registered under the delegation of the Central Competent Authority.

83. The Competent Authority of a County (City): management of business accounting affairs of businesses registered with it.

1(The Responsible Persons of the Business)

2The scope of the responsible persons of the business stipulated in the Laws must be in accordance with Corporation Law, Business Registration Act and other law-related provisions.

1（Accounting Personnel）

2A business shall designate accounting personnel to handle accounting affairs.

3For a business organized as a company, the appointment and discharge of the chief accounting personnel in a company limited by shares shall be determined by the board of directors, with the presence of a majority of the directors, and approval by a majority of the directors present at the meeting; in a limited company, the approval of a majority of all shareholders is required; in a unlimited company or unlimited company with limited liability shareholders, the approval of a majority of all unlimited liability shareholders is required.

4If the company's Articles of Incorporation establish higher requirements for the appointment or discharge of the chief accounting personnel than those specified in the preceding Paragraph, the provisions of the Articles of Incorporation shall prevail.

5Accounting personnel must abide to all laws when dealing with accounting affairs. In the event of release or change of post, the respective job transfer must take place within five (5) days.

6The handling of business accounting affairs may be delegated to a certified public accountant or a person with required qualifications to handle the accounting affairs on behalf of others in accordance with the law; for a business organized as a company, the procedures for delegating the handling of business accounting affairs shall follow the provisions set forth in Paragraphs 2 and Paragraphs 3 of this Article.

1（Accounting Period）

2The accounting period for businesses must start on January 1st of each year and end on December 31st of the same year. However, this does not apply if laws stipulate otherwise or in the event of special needs resulting from operations.

1（Bookkeeping Base）

2Businesses must use domestic currency as a bookkeeping base.

3If foreign currency is used for bookkeeping due to business needs, it is still required to convert the foreign currency into domestic currency in the closing report.

1（Bookkeeping Language）

2Except for Arabic numerals used in numbering, all recording of business transactions must use the domestic language; If it is necessary to include remarks in or concurrently use any foreign language or local language, domestic language must be predominant.

1（Payment Tool）

2Where the expenditure of a business reaches a specified amount, payment shall be made using a bill of exchange, promissory note, check, remittance, wire transfer, bank transfer, or any other payment method or instrument approved by the Competent Authority, with the payee clearly indicated.

3The specified amount referred to in the preceding Paragraph shall be announced by the Central Competent Authority.

1（Accounting Basis）

2The accounting basis shall follow the accrual basis of accounting. For businesses that adopt the cash basis of accounting in their daily operations, adjustments shall be made in accordance with the accrual basis during the year-end closing process.

3Accrual basis means that entries into the accounting books shall be made when revenues are determined as receivable and expenses determined as payable. During the year-end closing process, adjusting journal entries shall be made for revenues and expenses in accordance with the year to which they relate.

4Cash basis means that entries into accounts shall be made when revenues are received or expenses are paid in cash.

1（Accounting Events）

2Events that lead to changes in the assets, liabilities, equity, revenues, or expenses of a business are referred to as accounting events.

3Accounting events that involve rights and obligations with parties external to the business are classified as external accounting events. Conversely, accounting events that do not involve any parties other than the business are considered internal accounting events.

4Accounting events shall be recorded using the double-entry bookkeeping method.

1（Accounting System）

2A business may establish its own accounting system based on the actual business operations, nature of accounting affairs, internal control, and management needs.

1（Standard of Business Entity Accounting Processing）

2Accounting standards set out the name, format, and method of preparation of source documents, accounting items, journals, ledgers and financial statements shall be prescribed by the Central Competent Authority.

1（Obtaining or Offering of Accounting Documents）

2All accounting events must have sufficient documentation provided or given.

1（Categories of Accounting Documents）

2Accounting documents of a business are divided into the following two categories:

31. Source documents: The documents which prove the course of accounting events, and serve as the basis for preparing accounting vouchers.

42. Accounting vouchers: The documents which prove the responsibilities of the accounting personnel handling accounting events and serve as the basis for account keeping.

1（Source Documents）

2Categories of source documents are as follows:

31. External documents: The documents obtained from persons other than the business itself.

42. Outgoing documents: The documents issued to persons other than the business itself.

53. Internal documents: The documents prepared and kept by the business itself.

1（Accounting Vouchers）

2Categories of accounting vouchers are as follows:

31. Receipt Voucher.

42. Payment Voucher.

53. Transfer Voucher.

6The term "transfer voucher" referred to in the preceding Paragraph may be classified into cash transfer voucher and journal transfer voucher. All the vouchers may be distinguished from one another by color or other means.

1（Preparation of Accounting Voucher）

2A business shall prepare accounting vouchers based on source documents, and record them in the accounting books based on accounting vouchers. However, for the purpose of accounting settlement and the transfer of entries after settlement, source documents are not required to be attached.

3Where the accounting affairs of a business are simple or the source documents meet the requirements for account keeping, separate accounting vouchers need not be prepared and the source documents may be accepted in lieu of accounting voucher.

1（Preparation of Source Documents）

2External accounting events must be supported by external or outgoing documents. Internal accounting events must be supported by internal documents.

3If a source document cannot be obtained due to restrictions or if such documents are damaged, destroyed, unavailable, or lost, in addition to handling according to the procedures under laws and regulations, a business must prepare a slip based on the fact and amount and have the responsible persons of the business or a designated person sign or seal for account keeping.

4For an accounting event for which the source documents cannot be obtained, the responsible persons of the business may instruct the personnel handling and in charge of such event to provide individual or joint proof of the event.

1（Accounting Books）

2Accounting books consist of following two categories:

31. Journals: used to record accounting events chronologically.

42. Ledgers: used to accumulate accounting events according to the accounting items.

1（Journal Books）

2Journal books are divided into the following two categories:

31. General Journal Book: The journal books recording all events on a chronological basis and/or concurrently recording the footing of special chronological accounting items on a chronological basis, such as daily events or journal entries, etc.

42. Special Journal Book: The journal books recording special events on a chronological basis, such as cash book, sales journal, purchase journal and so on.

1（Ledger Books）

2Ledgers consist of following two categories:

31. General Ledger: The ledger used to record all controlling items.

42. Subsidiary Ledgers: The ledger used to record all subsidiary items of a controlling item.

1（Required Books）

2Journals and general ledgers shall be used by all business entities. Manufacturers or entities with larger business scope may use cost accounting books or special journals and subsidiary ledgers. Business entities with sound accounting systems may replace journals with daily account lists.

1（Numbering of Accounting Books）

2Each page of the accounting books maintained by a business shall be serially numbered. Pages that are removed or destroyed are not permitted.

1（Establishment of a Directory of Accounting Books）

2A business shall establish a directory of accounting books that specifies the name, characteristics, and the first and last dates of use. Both the responsible persons of the business and its accounting personnel handling and in charge of the accounting events shall sign it.

1（Recording of Name and Account on Accounting Books）

2For an account recorded with the name of a person in the book of a business entity, the real name of the person must be specified and the address of the person must be specified in the subsidiary account. For a joint account, the real name and address of the representative must be specified.

3For a property account recorded in the book of a business entity, the name, category, price, quantity and location of the property must be specified.

1(Accounting Items)

2Accounting items shall be appropriately classified according to the elements of the financial statements. A business may adjust the classification by adding or reducing items based on actual needs.

1(Contents of Financial Statements)

2A complete set of financial statements shall include the following:

31. A statement of financial position.

42. A statement of comprehensive income.

53. A statement of cash flows.

64. A statement of changes in equity.

7The financial statements shall be accompanied by the necessary notes which are an integral part of the complete set of financial statements.

1The balance sheet represents the financial position of the business entity as at the end of the period. The elements directly related to the measurements of financial position in the balance sheet are:

21. Assets: the resource controlled by the business entity as a result of past events and from which future economic benefits are expected to flow to the business entity.

32. Liabilities: the present obligation of the business entity arising from past events, the settlement of which is expected to result in an outflow from the business entity of resources embodying economic benefits.

43. Equity: the residual interest in the assts of the business entity after deducting all its liabilities.

1(The Statement of Comprehensive Income)

2The statement of comprehensive income represents the financial performance of the business for the reporting period and its elements are as follows:

31. Income: Refers to increases in economic benefits during the reporting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those arising from contributions by equity participants.

42. Expenses: Refers to decreases in economic benefits during the reporting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those arising from distributions to equity participants.

1（Notes to Financial Statements）

2The notes to the financial statements refer to the disclosure of the following items:

31. A statement that the financial statements have been prepared in accordance with this Law and the regulations issued under the authority of this Law.

42. The measurement basis used in the preparation of financial statements as well as other significant accounting policies used that are relevant to the understanding of the financial statements.

53. Changes in accounting policies, the reasons of such changes and their impact on the financial statements.

64. Creditors’ rights over specific assets.

75. The criteria for classifying assets and liabilities as current and non-current.

86. Significant contingent liabilities and unrecognized contractual commitments.

9

1（Periodical and Non-periodical Statement）

2Financial statements must be prepared based on fiscal years, provided that other periodical and non-periodical statements may be prepared. However, such limit does not apply to various additional periodical and non-periodical statements.

1（Classification of Titles for Financial Statements）

2Accounting items in the financial statements may, depending on actual circumstances or in compliance with legal requirements, be appropriately classified and consolidated. The classification of accounting items shall maintain consistent between reporting periods. In the event that the classification of accounting items differs between the prior period and the current period, such items shall be reclassified and an explanation shall be provided in the notes.

1（Format of Financial Statements）

2Except for newly established businesses, the format of the annual financial statements shall adopt a two-year comparative presentation, with the amounts for the current and prior year presented side by side.

1（Document Preparation）

2Unless supported by actual events, no accounting documents shall be prepared and no entries shall be made in the accounting books and records.

1（Timely Recording）

2Accounting events must be recorded in accordance with the sequence of occurrence on a daily basis no later than two months after such occurrence.

1（Signature and Seal on Accounting Vouchers and Books）

2Accounting vouchers and accounting books shall be signed or sealed by the responsible persons of a business entity, its officers, chief accounting personnel, and the accounting personnel handling and in charge of the accounting events. However, when accounting vouchers are signed or sealed by the business's officers, its chief accounting personnel, or the accounting personnel handling and overseeing the events under the authorization of the responsible persons of the business, this requirement shall not apply.

1（Binding of Documents）

2Accounting documents shall be bound into volumes on a daily or monthly basis. The source documents, if any, shall be attached to the corresponding accounting vouchers.

3Accounting documents that serve as proof of rights and obligations, or those that are required to be permanently preserved or are more conveniently bound separately, may be stored separately, provided that the date and number are cross-referenced.

1（Copy or Stub）

2A business shall keep at least one copy or stub of outgoing documents prepared by it.

3The abstract of the event and the amount thereof stated in the copy or stub shall not be different from those in the original.

4The original or stub of the outgoing documents referred to in the preceding Paragraph shall be coded in sequence, and the copies or stubs need to be bound into volumes; in the event that there is any clerical error in the original or that the original is recovered for cancellation, such originals can be pasted to the copy or stub with the same number. If the original is not available or cannot be recovered, reasons thereof shall be indicated on the copy or stub.

1（Preservation of Accounting Documents, Accounting Books and Financial Statements）

2All the accounting documents, except those which should be permanently kept or which are related to unsettled accounting events, shall be kept for at least five years after the completion of the year-end closing process.

3All the accounting books and financial statements shall be kept for at least ten years after the completion of the year-end closing process, provided that no unsettled accounting matters exist therein.

1（Liability for Damaging, Destroying or Missing Accounting Documents）

2If the accounting document, which should be and could be obtained for an accounting event, is damaged, missing, destroyed due to the intentional or negligent acts of the personnel responsible for or supervising the matter, resulting in damage to the business, such personnel shall be liable for compensation.

1（Processing Accounting Affairs Electronically）

2A business may process all or part of the accounting data electronically. The rules related to the internal control, the method of authorization and signature and seal of data entered, as well as the storage, safeguarding, modification of accounting data, and other related matters, shall be prescribed by the Central Competent Authority.

3A Business adopting electronic means to process accounting data may be exempt from the provisions set forth in Paragraph 1 of Article 36 and Paragraph 2 of Article 37.

1（Actual Cost of Asset）

2Initial recognition of assets and liabilities, as a matter of principle, shall be based on the cost.

1An item that satisfies definition of an element of financial statements should be recognized in the balance sheet or statement of profit or loss and other comprehensive income if:

21. It is probable that any future economic benefit associated with the item will flow to or from the business entity; and

32. The item has a cost or value that can be measured with reliability.

Business entities shall select measurement bases for recognizing financial statement items in a manner appropriate to the requirements of circumstances. Common measurement bases include historical cost, fair value, realizable value, or other measurement bases.

1(Assets)

2Assets acquired in exchange for non-monetary assets shall be measured at fair value as a general principle. However, if the fair value cannot be measured reliably, the asset’s cost is measured at the carrying amount of the exchanged asset.

3Donated assets shall be recorded at fair value and classified as additional paid-in capital, revenue or deferred revenue depending on their nature.

1（Inventories）

2The cost of inventories may be calculated by using specific identification method, first-in, first-out method or average method.

3Inventories shall be measured at the lower of cost and net realizable value. If the cost of inventories is higher than net realizable value, inventories shall be written down below cost to net realizable value, and the amount of the write-down shall be recognized as cost of sales in the period the write-down occurs.

1(Investments in Financial Instruments)

2Investments in financial instruments shall be measured at fair value, cost, or amortized cost method, depending on the nature thereof.

3Long-term equity investments that confer control or significant influence shall be accounted for using the equity method.

1（Allowance for Uncollectible Receivable）

2Receivables shall be measured based on the remaining balance after deducting the estimated allowance for uncollectible accounts, and separate allowance items for uncollectible accounts shall be established. When a receivable is determined to be uncollectible, it shall be written off against the relevant receivable accounting items using the established allowance for uncollectible accounts.

3Accounts receivable and notes receivable resulting from operating activities shall be separately recorded from accounts receivable and notes receivable resulting from non-operating activities.

1（Accumulated Depreciation）

2For remeasurement of depreciable assets, accumulated depreciation shall be established and presented as a deduction of the respective assets.

3Assets shall be depreciated on an annual basis.

4When depreciation of assets is computed, the salvage value shall be estimated. If the salvage value can be deducted according to the depreciation method, the balance after deduction of the salvage value shall be used as the basis for the computation.

5If an asset can continue to be used after expiration of its duration limit, it can continue to be depreciated using the salvage value thereof.

1（Method of Depreciation）

2Assets must be depreciated by using straight-line method, fixed percentage on diminishing book value method, sum-of-years’-digits method, production method, working-hour method or other depreciation methods approved by the central competent authority. Where the assets belong to different categories, the depreciation may be computed separately based on different categories.

1（Capital Expenditure and Revenue Expenditure）

2Expenditure that will benefit the subsequent periods is considered as an asset. Expenditure that benefits only the current period or has no benefit at all must be considered as an expense or loss.

1（Depletable Asset）

2An accumulated depletion item must be established for depletion assets, and the depletion expense must be recorded for each period.

1（Intangible Asset）

2For purchased goodwill, trademarks, patents, copyrights, franchises, and other intangible assets, the cost must be the acquisition cost.

3If the intangible assets referred to in the preceding Paragraph are self-developed, only the cost for registration or finished creative work can be recorded as acquisition cost. The research and development costs incurred must be recorded as current expenses. However, in the event of stipulations provided otherwise by the competent authority, this limit does not apply.

1（Revaluation and Adjustment of Asset）

2Business may revalue assets according to laws and regulations.

1（Processing of Revaluation）

2The surplus incurred due to revaluation or adjustment of assets processed in accordance with the preceding Article shall be recorded as unrealized revaluation surplus.

3The revalued assets shall be recorded at the revalued amount. From the year following the year of revaluation, the depreciation, depletion, or amortization of the revalued assets shall be calculated based on the revalued amount.

1（Deferred Expenses）

2Prepaid expenses are those which will bring future economic benefit and be charged to future periods. Prepaid expenses must be measured on the basis of the portion of amount covering the unexpired period.

1（Liabilities）

2Liabilities must be recorded based on the discounted value of the amount payable when due. However, liabilities incurred as a result of operation or trade or liabilities expected to be cleared within one year can be recorded using the amount to be paid back at maturity.

3The premium or discount of corporate bonds must be recorded as an addition or deduction of the par value of the bonds.

1（Evaluation of Capital Paid by Properties）

2Capital paid by properties other than cash must be recorded on the basis of the fair value of such properties. If the fair value is not available, an estimate may be made.

1（Accounting Consistent Principle）

2The recording basis and processing method of accounting events must be consistent; in the event of modifications required by justified causes, explanations with regard to the cause, modification and impact thereof must be made in the financial statements.

1（Merger, Dissolution, Termination or Transfer）

2In case of mergers, spin-offs, acquisitions, dissolutions, terminations or transfers of business, as a matter of principle, assets shall be accounted for based on fair value, carrying amount, or transaction price.

1(Total Comprehensive Income)

2All the income generated by a business in a fiscal year less all the costs, expenses, and losses in the same period shall be the total comprehensive income.

1（Revenue）

2Operating revenue should be recognized upon the completion of a transaction. Installment sales shall be recorded based on gross profit rate method, depending on their specific characteristics. Service revenue may be recognized periodically if provided over multiple periods depending on its nature.

3The transaction completion referred to in the preceding Paragraph, for businesses adopting the cash basis, shall be the time of cash receipt or payment; for businesses adopting the accrual basis, it shall be the time when goods are delivered or services are completed.

1(Recognition of Revenue and Expenses)

2Revenue and expenses related to the same transaction or event shall be recognized in accordance with relevant accounting standards.

1（Employee Pension）

2A business that has an obligation to pay employee retirement benefits shall make provisions in accordance with applicable laws during the employee's service period and recognize such provisions as expenses in the current reporting period.

1（Income Tax of Profit-Seeking Enterprise）

2All adjustments required by tax laws for income tax filing must not affect the records in the accounting books.

Deleted

1（Earnings Distribution）

2The distribution of earnings shall not be recognized as an expense or loss, provided that dividends on preferred stock with a debt-like nature shall be recognized as an expense.

1(The Year-End Closing Process)

2The year-end closing process of a business shall be completed within two months after the end of the fiscal year; an extension of up to two and a half months may be granted when necessary.

1(Preparation of the Year-End Closing reports)

2For the year-end closing process, a business shall prepare the following reports and statements:

31. The business report.

42. The financial statements.

5The content of the business report shall include operational policies, general status of implementation, results of the business plan execution, budget derived from operating revenues and expenditures, profitability analysis, research and development, etc..

6The year-end closing reports shall be signed or sealed by the responsible persons of the business, its officer and the chief accounting personnel.

1(Consolidation of Accounts of Branches)

2At the end of the fiscal year, a business with branches shall consolidate the accounts of its branches for the year-end closing process.

1(Approval of the Year-End Closing Reports)

2The responsible person of a business shall submit the year-end closing reports to its capital provider(s), partner(s), or shareholder(s) for approval within six months at the end of the fiscal year.

3The capital provider(s), partner(s), or shareholder(s) may commission a certified public accountant to conduct an examination of the matters mentioned in the preceding Paragraph, if deemed necessary.

4The responsible persons of a business and its chief accounting personnel shall be relieved of their accounting responsibilities for the fiscal year upon the approval of the year-end closing reports referred to in Paragraph 1, provided that this provision shall not apply in cases of unlawful or improper conduct involved.

1（Request for In-spection）

2The responsible persons of a business shall keep all the year-end reports at its principal office.

3Were an interested party of the business requests, for legitimate reasons, to inspect the year-end closing reports mentioned in the preceding Paragraph, the responsible persons of the business shall allow such inspection, provided that such inspection does not adversely affect the interests of the business.

1(Appointment of Inspector)

2An interested party of a business may petition the court, for legitimate reasons, to appoint an inspector to inspect the business’s accounting books, financial statements, and accounting documents.

1（Penalty (1)）

2The responsible persons of a business, its chief accounting personnel, accounting personnel handling and in charge of the events, or a person authorized in accordance with the law for handling accounting events on behalf of others shall be subject to imprisonment for a term not exceeding five years, detention, or a fine not exceeding NT$ 600,000, or imposed concurrently, in the event of any of the following circumstances:

31. Knowingly preparing accounting vouchers or making entries in the accounting books with false information;

42. Intentionally causing the loss, destruction, or damage of accounting documents, accounting books, or financial statements that should be preserved;

53. Forging or altering the contents of accounting documents, accounting books, or financial statements, or destroying any page thereof;

64. Intentionally omitting to record accounting events, resulting in the financial statements being false;

75. Causing accounting events or financial statements being false by other improper means.

1（Penalty (2)）

2Where accounting data is processed electronically by a business, any of the individuals mentioned in the preceding Article, or those involved in the electronic processing of such accounting data shall be subject to imprisonment for a term not exceeding five (5) years, detention, or a fine not exceeding NT$600,000, or imposed concurrently, in the event of any of the following circumstances:

31. Intentionally entering false information;

42. Intentionally damaging, destroying, or altering the accounting data, resulting in financial statements being false;

53. Intentionally omitting to record accounting events, resulting in the financial statements being false; or

64. Causing accounting events or financial statements being false by other improper means.

1(Reduction or Remission of Penalty)

2If the chief accounting personnel, the accounting personnel handling and in charge of the events of the business, or any individuals involved in the electronic processing of accounting data, commits the offenses specified in the preceding two Articles, their penalties may be reduced or remitted if there is credible evidence that they had previously expressed refusal or proposed corrective opinions.

1（Penalty (3)）

2Any person who, without the required qualifications to handle accounting affairs on behalf of others in accordance with the law, unlawfully handles the accounting affairs of a business, shall be subject to a fine not exceeding NT$100,000. If such person commits the offense again within three years of being discovered, they shall be subject to imprisonment for a term not exceeding one year, detention, or a fine not exceeding NT$150,000, or imposed concurrently.

1（Penalty (4)）

2Any person who, without the required qualifications to handle accounting affairs on behalf of others in accordance with the law, unlawfully handles the accounting affairs of a business and engages in any of the conduct specified in Articles 71 and 72, shall be subject to penalties in accordance with the provisions of the respective Articles.

1（Penalty (5)）

2The responsible persons of a business, its officers, the chief accounting personnel, or the accounting personnel handling and in charge of the accounting events shall be subject to a fine not less than NT$ 60,000 and not more than NT$300,0000 if any of the following circumstances occur:

31. Violation of Article 23 by failing to establish accounting books, except where exemption is granted by relevant laws and regulations;

42. Violation of Article 24 by damaging the pages of accounting books or destroying audit trails;

53. Failure to preserve accounting books, financial statements, or accounting documents within the period prescribed under Article 38;

64. Failure to complete the year-end closing process within the prescribed period under Article 65;

75. Violation of the provisions in Chapter 6 or Chapter 7 by preparing the year-end closing reports that are materially false.

1（Penalty (6)）

2The responsible person of a business who violates the provisions of Paragraph 1, Paragraph 2, or Paragraph 5 of Article 5, shall be subject to a fine not less than NT$ $30,000 and not more than NT$150,0000.

1（Penalty (7)）

2The responsible persons of a business, its officers, the chief accounting personnel, or the accounting personnel handling and in charge of the accounting events shall be subject to a fine not less than NT$ 30,000 and not more than NT$150,000, if any of the following circumstances occur:

31. Violation of Paragraph 1 of Article 9;

42. Failure to obtain source documents or issue them to others in accordance with the provisions of Article 14;

53. Failure to record accounts within the prescribed time in accordance with the provisions of Article 34;

64. Failure to bind or preserve accounting documents in accordance with the provisions of Article 36;

75. Failure to prepare the required statements in accordance with the provisions of Paragraph 1 of Article 66;

86. Violation of Article 69 by failing to maintain the year-end closing reports at the principal office of a business or by refusing the inspection by interested parties without legitimate reasons.

1（Penalty (8)）

2The responsible persons of a business, its officers, the chief accounting personnel, or the accounting personnel handling and in charge of the accounting events shall be subject to a fine not less than NT$ 10,000 and not more than NT$50,000, if any of the following circumstances occur:

31. Failure to keep accounts in accordance with Article 7 or Article 8;

42. Failure to establish a directory of accounting books in accordance with provisions of Article 25;

53. Failure to sign or affix a seal in accordance with the provisions of Article 35;

64. Failure to sign or affix a seal in accordance with the provisions of Paragraph 3 of Article 66;

75. Failure to submit for approval within the specified period in accordance with the provisions of Paragraph 1 of Article 68;

86. Evasion, obstruction, or refusal to undergo the inspection in accordance with the provisions of Article 70.

1（Penalty (9)）

2A certified public accountant or an individual qualified to handle accounting affairs on behalf of others in accordance with the law, who violates any provision of Article 76, Article 78, or Article 79 of this Law, shall be penalized in accordance with the respective Articles.

1（Imposition of Fines）

2The fines prescribed under this Law shall be imposed by the Competent Authorities at each level, except for those specified in Item 6 of Article 79, which shall be imposed by the courts.

1（Exceptions for small-scale businesses）

2A small-scale partnership or sole proprietorship business may be exempt from the provisions of this Law.

3The criteria for small-scale partnerships or sole proprietorships mentioned in the preceding Paragraph shall be determined by the Central Competent Authority, taking into the economic conditions of each municipality and country (city).

1（Effective Date）

2This Law shall enter into force on the date of promulgation.

3The amendments to this Law, promulgated on May 30, 2014, and shall enter into force on January 1, 2016, provided that a business may voluntarily adopt the amended provisions from the fiscal year beginning on or after May 30, 2014.