Taxation Agency,Ministry of Finance,R.O.C

Cross-strait　Tax　Agreement

2.16.886.101.20003.20004.20002 — Tue, 22 Dec 2009 00:00 0 GMT

A. The necessity and urgency of concluding a Cross-strait Agreement on the Avoidance of Double Taxation and the Enhancement of Tax Cooperation (hereinafter referred to as cross-strait tax agreement)
(A)The urgent need to establish an institutionalized cross-strait tax environment
As of the end of October 2009, our total investment in the Mainland had reached 80.5 billion US dollars, far exceeding the historical cumulative amount of authorized outbound investment of 62.1 billion US dollars. Thus far, the number of Taiwanese business people in the Mainland is estimated to have reached more than 800,000 people. Given the increasingly close relationship between cross-strait trade, investment and people, the effect of taxation by the two sides of the Taiwan Strait has become an increasingly significant factor for people, enterprises, and government. Thus, there is an urgent need to establish an institutionalized cross-strait tax environment.
(B)The upgrading of the competitive position in regard to taxation for Taiwanese enterprises in the Mainland
The tax authorities of the two sides exercise their own rights of taxation and provide unilateral mechanisms for the elimination of double taxation in accordance with their respective laws. As no tax agreement has been concluded between Taiwan and the Mainland, Taiwanese enterprises have been put at a disadvantage position in the Mainland in comparison with the enterprises from other countries that have signed tax agreements with the Mainland (at present, 89 countries such as Japan, Korea, Singapore, UK, USA, and regional areas such as Hong Kong and Macao). Taiwanese enterprises also face the risk of double taxation due to the practice of transfer pricing adjustment and face the problem of higher cost of tax compliance.
Therefore, to ensure greater certainty in the taxation of cross-border activities, it is necessary for both sides to conclude a tax agreement so as to determine the respective rights to tax of the two sides with regard to various categories of income; to eliminate double taxation; to resolve disputes; and to establish cooperative mechanisms between the two sides. It is expected that such an agreement will be used as a tool to avoid double taxation and to resolve cross-strait tax disputes; and to facilitate the work of Taiwanese enterprises in the upgrading of their competitive position in the Mainland.
(C)In line with international trends, avoidance of the marginalization of Taiwan
The extensiveness of the tax agreement network is one of the important indicators for foreign investors to assess the investment environment of a country. At present more than 3,800 bilateral tax agreements have been concluded worldwide. The Mainland has concluded tax agreements with 89 countries and two regions, including our major competitors, such as Japan, South Korea, Singapore, and Hong Kong. However, Taiwan has only concluded 16 tax agreements so far. If we fail to work actively with countries or regions to conclude tax agreements, Taiwan will face a risk of marginalization. Such a situation will affect the attractiveness of the Taiwanese market for foreign investment and willingness to use Taiwan as a cross-strait logistics center. Therefore, a tax agreement with the Mainland is urgently needed.

B. The content of a cross-strait tax agreement
The content of a cross-strait tax agreement mainly follows the Model Conventions developed by the Organization for Economic Cooperation and Development (OECD) and by the United Nations (UN) for use in international tax practice and take into consideration the tax laws and interchange of business and trade of the two sides. Further, such an agreement is based on the principle of reciprocity and mutual benefit and contains measures for the avoidance of double taxation and the enhancement of tax cooperation.
The fundamental content of a tax agreement includes the scope, the allocation of the tax rights on the various categories of income, the methods for the elimination of double taxation and for tax cooperation, and so on. The structure of the content is as follows:
Structure Content
1. Scope  Persons covered (residents according to income tax laws)
 Taxes covered (income tax; business tax for the revenue from shipping and air transport only)
2. Allocation of the tax rights on the various categories of income  Business profits
 Income from shipping and air transport
 Investment incomes (dividends, interests and royalties)
 Capital income or gains (income from the use of immovable property, gains from the disposal of the property)
 income from personal services (independent personal services, income from employment, directors’ fees, artistes and sportsmen, pensions, public service and students)
 other income
3. Methods for the elimination of double taxation-credit method
4. Tax cooperation  Non-discrimination
 Mutual agreement procedures
 Exchange of information
 Assistance in the collection of taxes
 Operational exchanges
 Liaison bodies

C. The benefits of a cross-strait tax agreement
A cross-strait tax agreement would benefit the people, enterprises and government as follows:
(A)For the people and enterprises
The agreement will eliminate the effects of double taxation on both sides, thus reducing the tax burden and uncertainty in the levy of taxes, and also be conducive to the ability of Taiwanese enterprises to compete with the enterprises of other countries or regions in the Mainland, and Taiwanese investors will be further able to effectively reduce their risk of investment.
(B)For the government
The conclusion of such an agreement will improve the efficiency and correctness of tax collection, allow for the establishment of a more institutionalized tax environment, and a more attractive investment environment. Currently, Taiwan has established a mechanism to encourage the flow of capital back to Taiwan, including the lowering of the estate and gift tax rate, the provision of tax benefits for operational headquarters, and the establishment of a comprehensive low income tax environment (such as by the lowering of the profit-seeking enterprise income tax rate to 20%, the increase of the threshold of its taxable amount to 120,000 NT dollars, and the provision of functional investment credits, etc.). A cross-strait tax agreement will further facilitate to enhance the investment environment in Taiwan.
Speaking overall, a cross-strait tax agreement will increase the competitiveness of our investment environment, lead to the development of associated industries, create employment opportunities and enhance overall economic development.

Uniform-Invoice Prize Winning Numbers for Months 01-02, Year 2010

2.16.886.101.20003.20004.20002 — Thu, 25 Mar 2010 00:00 0 GMT

Uniform-Invoice prize winning numbers for January and February,2010 have been released.The grand Prize winning number are 08155556、46485330、67261775 and 3 sets of the first prize are 42777940、60880077、98966165. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Morakot Reconstruction－Taxation

2.16.886.101.20003.20004.20002 — Wed, 7 Oct 2009 00:00 0 GMT

Exhibitors VAT Refund System

2.16.886.101.20003.20004.20002 — Tue, 8 Jun 2010 00:00 0 GMT

“Exhibitors VAT Refund System” An augmentation to Article 7-1 of “The Value-Added and Non-Value-Added Business Tax Act” was promulgated by the President The Ministry of Finance (MOF) said in order to promote firms’ competitivity in exporting, an augmentation to Article 7-1 of “The Value-Added and Non-Value-Added Business Tax Act”(the Act) was promulgated by the President on May 5th, 2010. Foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC, which purchase the goods or services eligible for the value-added business tax (VAT) conforming to certain terms for the purpose of engaging in exhibitions or temporary business activities, may qualify for a VAT refund on the aforesaid goods or services, provided that reciprocal treatment is in place. In order to help Taiwan’s firms to extend the international market and lighten operational costs, the MOF referred to the systems of Germany and South Korea to augment the VAT refund system. On the basis of reciprocal treatment, foreign enterprises, institutions, organizations, or associations without fixed place of business within the territory of the ROC, which purchase the goods or services eligible for VAT for a certain amount of money or more within the ROC for the purpose of engaging in exhibitions, business trips, investigation of market conditions, performance of market research, generation of business, holding of marketing seminars, and other such temporary business activities within the period of one year may qualify for a VAT refund on the aforesaid goods or services. However, where the documents of the goods or services purchased are not obtained or kept, or where the goods or services are purchased under the provisions of subparagraph 2 to 5 of Article 19 of the Act, such goods or services shall not be applicable for tax refund. When this augmentation of the Act comes into force, a Taiwanese business entity, which engages in the aforesaid activities and pays the VAT or similar taxes in reciprocal country, may qualify for a VAT refund in that country too, the MOF explained. In order to match the augmentation, the MOF is drafting the related regulations and procedures for VAT refund and will submit them to the Executive Yuan for approval and for decision on the date of enforcement, the MOF said.

Enforcement Rules of the Income Tax Act (Announced Date： 2009-11-18 )

2.16.886.101.20003.20004.20002 — Tue, 18 May 2010 00:00 0 GMT

“Enforcement Rules of the Income Tax Act” Article 10-1, Article 21, Article 24-3, Article 24-4, Article 24-5, Article 24-6, Article 25-2, Article 31, Article 31-2, Article 46, Article 48, Article 55-1, Article 56, Article 57-1, Article 58, Article 61-1, Article 64, Article 72, Article 82 and Article104 amended and promulgated; Article 17-3 and Article 65-1 added; Article 59 and Article 98 deleted per the Order of Tai-Tsai-Shuei-Tze No. 09800587250 issued by the Ministry of Finance on November 18, 2009.

Land Tax Act (Announced Date：2009-12-30 )

2.16.886.101.20003.20004.20002 — Fri, 14 May 2010 00:00 0 GMT

Amendment to Article 34 promulgated on 30 December 2009 by Presidential Decree No.09800323211. Article　34　 For self-use residential land sold by title owner, the land value increment tax shall be 10% of the total incremental value of the land for urban land up to 3 acres and for non-urban land up to 7 acres; the total incremental value for part of land in excess of 3 acres or 7 acres shall be taxed according to the rate schedule stipulated in the foregoing article. The preceding provision does not apply to land that was used for business purpose or rented in the last year before its sale. The provisions in the first paragraph hereof do not apply to land where the assessed value of the self-use residence thereon is less than 10% of the assessed present value of the land, unless the construction of the residence has been completed for more than one year. Landowner may use the tax rate provided in the first paragraph hereof for calculation of land value increment tax once in his or her lifetime. In the case that the landowner sells another self-use residential land after the terms of the preceding paragraph has been exhausted, the land value increment tax imposed thereon shall not be governed by the once in the lifetime restriction as provided in the preceding paragraph if the following conditions are met: a) That the amount of the urban land sold doesn’t not exceed an area of 1.5 acres and that of non-urban land sold doesn’t not exceed 3.5 acres; b) At the time of selling, the landowner, his or her spouse, and his or her minor children have no other house except the self-use residence sold; c) The landowner has owned the self-use residential land for a period of over 6 years before its sale; d) The landowner, his or her spouse, and his or her minor children have maintained their household registration at the location of on the self-use residential land and owned the self-use residence for a period of consecutive 6 years before its sale; e) The land has never been used for business purposes or rented in the last 5 years before its sale. The actual loss in tax revenue to municipal or county (city) governments resulting from the provisions in the preceding paragraph will be made up by the central government. The aforesaid dedicated funds for making up lost tax revenue shall not be restricted by Article 23 of the Budget Act which forbids the use of proceeds from the issue of government bonds on current expenditure prior to the implementation of the amended Act Governing Allocation of Government Revenues and Expenditures which expands the scale of tax revenues under the allocation of central government. The calculation of actual loss in tax revenue described in the preceding paragraph will be decided by the central competent authority together with the municipal and county (city) governments through consultation.

Deed Tax Act (Announced Date： 2009-12-30 )

2.16.886.101.20003.20004.20002 — Fri, 14 May 2010 00:00 0 GMT

Amendment to Article 24 promulgated on 30 December 2009 by Presidential Decree No. 09800323271. Article　24　 A taxpayer who fails to file the deed tax return within the prescribed period shall pay a surcharge equal to one percent of the amount of tax due for every three days of delay, up to the amount of tax due. However, the amount of the delinquent reporting surcharge shall not exceed NT$15,000.

Uniform-Invoice Prize Winning Numbers for Months 03-04, Year 2010

2.16.886.101.20003.20004.20002 — Tue, 25 May 2010 00:00 0 GMT

Uniform-Invoice prize winning numbers for March and April,2010 have been released.The grand Prize winning number are 19435190、54737632、87849867 and 3 sets of the first prize are 46833175、62668077、65170263. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Commodity Tax Act (Announced Date： 2009-12-30)

2.16.886.101.20003.20004.20002 — Wed, 30 Jun 2010 00:00 0 GMT

Article 32 amended on 30th December 2009 by Presidential Decree No. Hua–Tsung-1-Yi 09800323261. Article　32 In any of the following circumstances, the taxpayer shall be pursued for payment of taxes and fined from 1 to 3 times the amount of tax evaded: 1. Failing to complete necessary registration in compliance with Article 19, And illegally manufacturing commodities subject to commodity tax. 2. Failing to affix tax-payment or tax-exemption certificates or substitutes as approved. 3. Intermingling cheaper or other goods with costly goods. 4. Unauthorized selling or using of tax-exempt commodities for the purpose of tax evasion. 5. Altering or re-using tax-payment or tax-exemption certificates and tax payment receipts. 6. Misstating the quantities of raw material or finished goods in stock in account books or records, the purpose of which has been ascertained as tax evasion. 7. Failing to report the ex factory quantity or under reporting. 8. Failing to report the selling price or taxable value or underpricing taxable commodities. 9. Forwarding the taxable commodities during the period prescribed in Article 25. 10. Failing to declare imported commodities subject to commodity tax at time of importation in accordance with regulations. 11. Any other illegal evasion of tax, receipt of tax refund or offset of commodity tax.

Vehicle License Tax Act (Announced Date： 2009-12-30)

2.16.886.101.20003.20004.20002 — Fri, 25 Jun 2010 00:00 0 GMT

Amendment to Article 31 promulgated on 30 December 2009 by Presidential Decree No.09800323231. Article　31 If a vehicle license is sold or removed for use on another vehicle, its owner or user shall pay a fine equal to twice the amount of tax due；however, the total fine imposed shall not exceed NT$150,000.

Tobacco and Alcohol Tax Act (Announced Date： 2009-12-30)

2.16.886.101.20003.20004.20002 — Tue, 22 Jun 2010 00:00 0 GMT

Amendments to Article 22 of the Tobacco and Alcohol Tax Act were promulgated by Presidential Decree No. 09800323221 on 30 December, 2009. Article　22 The Health and Welfare Surcharges on tobacco products shall be collected by the collecting agencies of the tobacco and alcohol taxes when such taxes are collected.

Securities Transaction Tax Act (Announced Date： 2009-12-30)

2.16.886.101.20003.20004.20002 — Wed, 16 Jun 2010 00:00 0 GMT

Amendment to Article 2-1 promulgated on 30th December, 2009 by Presidential Decree. Article　2-1 In order to increase trading in the bond market, help enterprises raise money, and promote the operation of the capital market,the securities transaction tax levied on corporate bonds and finance bonds shall be exempted from levy for seven years as of 1st January, 2010.

Exhibitors VAT Refund System

2.16.886.101.20003.20004.20002 — Mon, 5 Jul 2010 00:00 0 GMT

【Press Release】 “Exhibitors VAT Refund System” The system of refund for foreign enterprises, institutions, organizations, or associations purchasing goods or services eligible for VAT for participating in such business activities as exhibitions, etc. within the territory of the ROC, based on the principal of reciprocity will be enforced on July 1, 2010 The Ministry of Finance (MOF) proclaimed that in order to promote the international competitiveness of exporters, an augmentation to Article 7-1 of “The Value-Added and Non-Value-Added Business Tax Act” will come into force on July 1, 2010. Foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC, which purchase the goods or services eligible for the value-added business tax (VAT) conforming to certain terms for the purpose of engaging in exhibitions or temporary business activities, may qualify for a VAT refund on the aforesaid goods or services, provided that reciprocal treatment is in place. In addition, the MOF explained that to be in line with the enforcement of the above article, “The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC” was promulgated, which stipulated detail procedures for the application of the augmentation to Article 7-1 in the regulations. In the case that foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC purchase the goods or services on which VAT is levied to a total of NT5,000 or more within the ROC for the purpose of engaging in exhibitions, business trips, investigation of market conditions, performance of market research, generation of business, holding of marketing seminars, and other such temporary business activities within a period of one year, such entities or their agents may file with an application form by the MOF, affixed with relevant attachments and documents to the competent tax authority for a VAT refund. The MOF pointed out that in order to match the augmentation of this article, the MOF and its relevant competent tax authorities will publish Chinese and English notices of applying for tax refund and provide them to the Taiwan External Trade Development Council（TAITRA）and the relevant overseas units of the Ministry of Economic Affairs（MOEA）for promotion and use. The relevant information can be browsed and downloaded at the special zone ”Exhibitors VAT Refund System” of the MOF website ( www.etax.nat.gov.tw) .

The Enforcement Rules of the Estate and Gift Tax Act (Announced Date： 2010-01-13)

2.16.886.101.20003.20004.20002 — Fri, 2 Jul 2010 00:00 0 GMT

Article 44 amended and promulgated per the Order of Tai-Tsai-Shuei-Tze No. 09904502460 issued by the Ministry of Finance on January 13, 2010. Article　44 The lands reserved for public facilities included in the estate of a decedent eligible for an estate tax exemption pursuant to Article 50-1 of the Urban Planning Act, the taxpayer may apply for paying estate tax in kind using the said property. Where the beneficiary of a gift is also the taxpayer as described under Paragraph 1, Article 7 of the Act, the taxpayer may apply for paying gift tax in kind using the reserved lands for public facilities included in the property received that are eligible for a gift tax exemption pursuant to Article 50-1 of the Urban Planning Act. Except for the lands which were owned by the decedent or the donor before being designated to be reserved for public facilities, or the lands which were transferred to the decedent or the donor because of inheritance after being designated to be reserved for public facilities with no records of transfer of ownership other than by inheritance during the period from the date of designation and the date of transfer, the amount of estate tax and gift tax payable which may be offset by the lands reserved for public facilities as mentioned in the preceding paragraphs shall be subject to limitation calculated as follows: The limitation of tax payable which can be offsetted by the lands reserved for public facilities = The estate tax or gift tax payable based on the Act × (the value of the public facilities reserved lands surrendered for tax payment ÷ the total amount of the estate or gift assets)

Tax Collection Act (Announced Date： 2010-01-06)

2.16.886.101.20003.20004.20002 — Tue, 13 Jul 2010 00:00 0 GMT

Issuance of Decree Hua-tzung-1 No. 09800326961 by the President on 6th January 2010：The amendments to Article 44 and augmentation of Articles 11-3, 11-4, 11-5, 11-6, 11-7 , 25-1 and the name of Chapter 1-1 were promulgated. Chapter　1-1 The Protection of Taxpayer’s Rights Article　11-3　 The legal orders and administrative rules issued by the Ministry of Finance in accordance with this Act or any relevant tax act shall not increase or reduce the taxpayer’s legal tax payment duty. Article　11-4　 A tax act or any other act with specific policy oriented tax incentives shall provide a definite implementation period as well as to attain the reasonable policy goal as its limit and nothing more. The enactment of tax incentives in the preceding paragraph shall be evaluated with tax-form expenditure. Article　11-5　 The investigator(s) appointed by the tax collection authority or the Taxation Agency of the Ministry of Finance shall notify, prior to the start of the investigation, the affected tax collection authority or agency for such purpose, in addition to the written notice to the person under investigation, specifying the purpose and scale of such investigation. If the person under investigation has assigned an agent, the agent shall present power of attorney during the investigation and inquiry. The person under investigation or his/her agent may, with the permission of the tax collection authority or the Taxation Agency of the Ministry of Finance, appear in the company of his/her assistant at the investigation and inquiry. Article　11-6　 A confession unduly obtained by a tax collection authority and in violation of the fact shall not be presented as evidence for assessment or punishment. Article　11-7　 The tax collection authority shall provide a proper place for petition or answering to the question of taxpayer's case. Article　25-1 In accordance with this Act or any relevant tax act, where the amount of tax which shall be paid additionally, refunded of transferred to for compulsive execution by the tax collection authority, is less than a specific amount, the Ministry of Finance may, depending upon the actual situation and after obtaining the approval of the Executive Yuan, waive the payment, refund or compulsive execution. Article　44 Where a profit-seeking enterprise fails to provide or obtain certificates to or from others or to keep certificates as required by the law, a fine in an amount equivalent to five percent (5%) of the total amount of the relevant certificates as verified and determined shall be imposed on such enterprise. If the profit-seeking enterprise obtain the certificates from non-actually traded party, but was found out they indeed have bought the goods and that the certificate was given by the actually traded profit-seeking enterprise and the actually traded profit-seeking enterprise was already fined by law, the penalty may be lifted. The amount of fines in the preceding paragraph shall not exceed NT$1,000,000.

Regulations Governing the Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income

2.16.886.101.20003.20004.20002 — Mon, 19 Jul 2010 00:00 0 GMT

Note: In case of any discrepancy between the English version and the Chinese text of these Regulations, the Chinese text shall govern. Promulgated by Decree No. 09904504820 issued by the Ministry of Finance on January 7, 2010. Chapter 1 General Provisions Article 1 These Regulations are enacted pursuant to the provisions set out in Paragraph 5, Article 80 of the Income Tax Act. Article 2 The investigation and audit of a case applicable under an agreement for the avoidance of double taxation with respect to taxes on income (hereinafter referred to as the “DTA”) shall be conducted in accordance with the provisions of the DTA signed between a country or territory and the Republic of China (hereinafter referred to as the “ROC”). Any such matter not provided for in the DTA shall be governed by the provisions of the Tax Collection Act, the Income Tax Act, the Income Basic Tax Act, these Regulations, and relevant laws and regulations. However, where the provisions of the Income Tax Act or other laws providing income tax benefit are more favorable than those contained in the DTA, the most favorable provisions shall apply. Article 3 The DTAs (including full text, exchange of letters, attachments and protocols) mentioned in these Regulations refer to those signed and effective in accordance with Article 5 of the Tax Collection Act, Article 124 of the Income Tax Act, or other relevant laws, including comprehensive taxation agreements and reciprocal exemption agreements on income derived from the operation of shipping and air transport. The Contracting States mentioned in these Regulations refer to a country or territory which has signed a DTA with the ROC and the ROC. The application of a DTA shall be limited to those persons who are the residents of the other Contracting State or the ROC. Article 4 A resident of the other Contracting State who is subject to tax in accordance with the provisions of the Income Tax Act, the Income Basic Tax Act and relevant laws and regulations may apply to obtain the benefit of any reduction in or exemption from tax provided for in the DTA. In the case where the tax collection authority-in-charge investigates and audits the constituent elements of a case applicable under a DTA in the preceding paragraph, such investigation and audit shall be based on the facts of the actual economic relationships and the attribution and ownership of the actual economic benefits. Article 5 In the case of an individual, a resident of the ROC applicable under a DTA means an individual who is subject to tax under the provisions of Paragraph 2, Article 7 of the Income Tax Act. In the case of a company or any other body of persons, a resident of the ROC applicable under a DTA means a person that is subject to tax on its total profit-seeking enterprise income derived within or outside the territory of the ROC under the provisions of Paragraph 2, Article 3 of the Income Tax Act. The resident status of a person of the other Contracting State shall be recognized based on the Resident Certificate issued by the other Contracting State in accordance with the provisions for residents under the DTA. Article 6 Where a person is a resident of both Contracting States, then his or her resident status shall be determined by the items in the order of the sequence stipulated in the provisions of the applicable DTA. The terms and criteria of the relevant items in the 1.　The term “permanent home” means a place of residence arranged and retained by an individual, continuously available to him or her at all times. 2.　The term “with which his or her personal and economic relations are closer (or centre of vital interests)” shall be determined by overall considering factors such as his or her family and social relations, his or her occupation, his or her political, cultural, or other activities, his or her place of business, and the place from which he or she administers his or her property, etc. 3.　The term “habitual abode” shall be determined by comparing the length of time and frequency of the individual’s stays in the Contracting States. 4.　The term “national” means any individual possessing nationality in accordance with the Nationality Act of a Contracting State. 5.　The term “place of effective management” shall be determined by overall considering factors such as the location of key managerial personnel, and the place where they exercise management and control of a company or any other body of persons. Article 7 The permanent establishment (hereinafter referred to as the PE) mentioned in these Regulations refers to a fixed place of business through which the business of an enterprise is wholly or partly carried on. An enterprise of the other Contracting State shall be deemed to have a PE in the ROC if the enterprise has the following place of business in the territory of the ROC: 1.　A fixed place, including the housing, facilities or equipment fixed to the soil on which it stands or which remains on a particular site. The enterprise shall be deemed to have a PE if the business is carried on by the use of automatic equipment at a fixed place which is operated and maintained by an enterprise of the other Contracting State; or 2.　A fixed place through which the business has been carried on continuously for a period more than six months; or not up to six months but the business has been regularly carried on; or 3.　A fixed place which is at the disposal of or used by the enterprise of the other Contracting State. An enterprise of the other Contracting State shall be deemed not to have a PE if the maintenance of a fixed place of business is solely for the carrying on of an activity of a preparatory or auxiliary character. Article 8 In the case where an enterprise of the other Contracting State carries on a building site, construction, installation, or assembly project in the territory of the ROC for a period of time exceeding a certain duration of time and is deemed to have a PE in the ROC in accordance with the provisions for PE under the DTA, the duration of time shall be determined by the calculation of the total period of time from the date on which the contractor begins his or her work on building, construction, installation or assembly, including any preparatory work, until the work is completed or the project is permanently abandoned. Seasonal or other temporary interruptions shall be included in determining the duration of time. If an enterprise which has undertaken the performance of a comprehensive project subcontracts parts of such a project to other enterprises, the period spent by a subcontractor working on such a project shall be included in determining the duration of time. The aforementioned term “building site, construction, installation, or assembly project” includes the work of building, renovation, excavating, dredging, and laying of pipe-lines for a building, road, bridge, canal, etc. project. Article 9 In the case where an enterprise of the other Contracting State carries on supervisory activities in the territory of the ROC in connection with a building site, construction, installation, or assembly project for a period of time exceeding a certain duration of time or furnishes services in the territory of the ROC where activities of that nature continue, for the same or a connected project, through employees or other personnel or persons engaged by the enterprise (including individuals and body corporate) for such purpose for a period or periods of time aggregated exceeding a certain duration of time; and the enterprise is deemed to have a PE in the ROC in accordance with the provisions for PE under the DTA, the duration of time shall be determined by the computation of the total of the aggregated days of presence of employees or other personnel or persons engaged by the enterprise to furnish services within the territory of the ROC. However, in the case that the tax collection authority-in-charge of the ROC finds that the enterprise has also engaged in activities outside the territory of the ROC and such activities have a close connection to the services furnished within the territory of the ROC (including the preparatory work), the total number of days spent in such activities shall be included in the calculation of the aforementioned duration of time. In the case where a resident of the other Contracting State has derived income from performing professional services or other activities of an independent character within the territory of the ROC, for a period or periods aggregated exceeding a certain duration of time and such income is taxable according to the domestic law, the computation of the duration of time in the preceding paragraph shall also apply in this case. The computation of the duration of time referred to in the preceding two paragraphs shall be determined by the aggregation of the days commencing from the next day of the arrival and ending on the day of departure, of the relevant personnel, and include weekends, national holidays, holidays, days off due to personal affairs, sickness or death in the family, the departure day and temporary cessation of work due to strikes, training, etc. If the services are provided by two or more members of personnel and there is an overlap in the periods of their stay in the territory of the ROC, the overlapping period shall not be counted twice for the computation of the duration of time. Article 10 The term “a person who is acting on behalf of an enterprise and has, and habitually exercises, in the territory of the ROC an authority to conclude contracts in the name of the enterprise” under the provisions of the DTA refers to any person, who may be an individual or individuals, company or companies or any other body of persons, is acting on behalf of an enterprise and has, and habitually exercises, in the territory of the ROC, an authority to conclude contracts in the name of the enterprise, sign documents in a way binding on the enterprise, or negotiate all elements and details of a contract. However, the aforementioned person does not include an agent conducting activities for the enterprise solely of a preparatory or auxiliary character or an independent agent. The term "independent agent" referred to in the preceding paragraph refers to an agent acting in the ordinary course of the business when acting on behalf of an enterprise of the other Contracting State. Chapter 2 Attribution of the Right to Income Tax Article 11 The attribution of the right to tax on different categories of income shall be governed by the DTA. The income which may be taxed in the source State in accordance with the provisions of the DTA may also be taxed in the resident State, whereas the resident State shall eliminate double taxation in accordance with the DTA or its domestic taxation laws. Where a resident of a State derives income which, in accordance with the provisions of the DTA, shall be taxed only in the source State or in the resident State, the other State shall exempt such income. Article 12 The determination of the source State of the income shall be governed by the DTA; with regard to matters not provided for in the DTA, the Income Tax Act or relevant provisions of other acts and regulations shall govern. Chapter 3 Application of Tax Reduction and Exemption Article 13 Where an enterprise of the other Contracting State derives business profits which are taxable according to the domestic law, and is entitled to a reduced rate or exemption in accordance with the provisions for business profits under the DTA, that enterprise shall, according to the provisions of the applicable DTA, submit the Resident Certificate issued by the tax authority of the other Contracting State, relevant documents which prove the enterprise has no PE within the territory of the ROC or does not carry on its business through a PE within the territory of the ROC, and relevant documents providing information of the income, and apply to the tax collection authority-in-charge where the payer of such income is located for approval. Where the income is subject to withholding tax under Article 88 of the Income Tax Act, the tax collection authority-in-charge shall, when issuing the approval, simultaneously notify the tax withholder of the reduction of or exemption from the withholding tax. The aforesaid enterprise, when in accordance with the Income Tax Act that such enterprise shall file the annual income tax return by its fixed place of business located within the territory of the ROC or file a tax return and make tax payment by its business agent, may submit the documents in the preceding paragraph for the application of the DTA while filing the tax return. The tax collection authority-in-charge shall determine the amount of income which is entitled to the reduced tax rate or exemption. Article 14 Where an enterprise of the other Contracting State derives profits from the operation of ships or aircraft in international traffic in the territory of the ROC and is entitled to a reduced rate or exemption in accordance with the provisions for shipping and air transport under the DTA, that enterprise shall submit the Resident Certificate issued by the tax authority of the other Contracting State or the relevant documents which prove the place of effective management of the enterprise is located in the territory of the other Contracting State, along with relevant documents corresponding to the relevant provisions of the DTA, and apply to the tax collection authority-in-charge where the payer of such income is located for approval. Where the income is subject to withholding tax under Article 88 of the Income Tax Act, the tax collection authority-in-charge shall, when issuing the approval, simultaneously notify the tax withholder of the reduction in or exemption from the withholding tax. The aforesaid enterprise, when in accordance with the Income Tax Act that such enterprise shall file the annual income tax return by its fixed place of business located within the territory of the ROC or file a tax return and make tax payment by its business agent, may submit the documents in the preceding paragraph for the application of the DTA while filing the tax return. The tax collection authority-in-charge shall determine the amount of income which is entitled to the reduced tax rate or exemption. Article 15 Where a resident of the other Contracting State derives dividends, interests, royalties or technical fees from ROC sources and has no PE or fixed base in the territory of the ROC, or has a PE or fixed base in the territory of the ROC but the relevant shares, debt-claims or rights are not effectively connected with such PE or fixed base, the tax withholder of such income may withhold the tax according to the limited tax rate stipulated in the relevant provisions of the DTA. In such a case, the dividends, interests, royalties or technical fees shall not be included in the business profit of the PE located in the territory of the ROC or in the income from professional services of the fixed base located in the territory of the ROC. A resident of the other Contracting State who is entitled to the application of the limited tax rate as referred to in the preceding paragraph shall submit the Resident Certificate issued by the tax authority of the other Contracting State and documents identifying him or her as the beneficial owner of such income, and hand them over to the tax withholder for the handling of withholding matters. The tax withholder shall state the provisions of the applicable DTA, present the aforementioned documents provided by the said income recipient, as well as copies of relevant documents pertaining to the calculation of income while filing the withholding tax statement with the tax collection authority-in-charge. A resident of the other Contracting State who derives interests and is entitled to the exemption in accordance with the provisions for interest under the DTA, may submit the Resident Certificate issued by the tax authority of the other Contracting State, relevant documents pertaining to the calculation of income and relevant documents corresponding to the relevant provisions of the DTA, and apply to the tax collection authority-in-charge where the payer of such income is located for approval. Where the income is subject to withholding tax under Article 88 of the Income Tax Act, the tax collection authority-in-charge shall, when issuing the approval, simultaneously notify the tax withholder of the exemption from the withholding tax. The limited tax rate referred to in the preceding two paragraphs means the tax charge to a resident of the other Contracting State who derives interests, royalties or technical fees shall not exceed the specific ratio of the gross amount of such income in accordance with the provisions of the DTA. As for dividends, the withholding tax payable as stipulated in Article 73-2 of the Income Tax Act shall not exceed the specific ratio of the gross amount of the dividends in accordance with the provisions of the DTA. The required documents pertaining to the calculation of income mentioned in the provisions of Paragraphs 2 and 3 include: with respect to interests, loan contracts or deposit records, interests statements or notices, etc.; with respect to dividends, share certificates or beneficiary receipts, dividends distribution calculation statements or notices, etc.; with respect to royalties or technical fees, licensing or technical service contracts (including a copy of the Chinese text), calculation statements of royalties or technical fees due, etc. Except in the case where the relevant provisions of the DTA or the stipulations of the Ministry of Finance provide that a fund, trust or trustee shall be deemed to be the beneficial owner of dividends or interest, a foreign institutional investor of the other Contracting State which invests in domestic securities with the status of a fund, or not with the status of a fund but by the means of concluding contracts of order trading, discretionary account trading, or trust with residents of the other Contracting State and derives dividends or interest from ROC sources shall prepare the following documents and hand them over to the tax withholder for the handling of withholding matters: 1. A list of beneficiaries at any time point between the date of 31st December of the preceding year in which the income is incurred and the date on which the income is incurred. The content of the list of beneficiaries shall include the names, personal ID numbers or tax registration numbers, and addresses of beneficiaries, the number of units which are held by each beneficiary or the proportion of the beneficial rights to which each of the beneficiaries is entitled. 2. The Resident Certificate issued by the tax authority of the other Contracting State which demonstrates that each beneficiary named on the list of beneficiaries is a resident of the other Contracting State. The above mentioned Certificate may be replaced by a Resident Certificate issued by the tax authority of the other Contracting State which demonstrates the proportion of the units of the fund or trust which are held by the residents of the other Contracting State or the proportion of the beneficial rights of the fund or trust to which the residents of the other Contracting State are entitled. In the case where the other Contracting State only issues a Resident Certificate of the foreign institutional investor without the aforementioned information, the following documents shall be submitted as well: (1) Statement issued by the foreign institutional investor: the content of the statement shall include the proportion of the units of the fund or trust which are held by the residents of the other Contracting State or the proportion of the beneficial rights of the fund or trust to which the residents of the other Contracting State are entitled. Such statement shall be attested by a Taiwanese embassy or consulate in the other Contracting State, or attested by a court or a government authority or verified by a notary of the other Contracting State. (2) Prospectuses for public offerings or prospectuses of investing schemes. Article 16 Where a resident of the other Contracting State derives income from employment which is taxable according to the domestic law, and is entitled to a reduced rate or exemption in accordance with the provisions for income from employment under the DTA, he or she shall, according to the due applicable provisions of the DTA, submit the Resident Certificate issued by the tax authority of the other Contracting State, his or her passport, contract of employment, or other relevant documents, along with the documents which demonstrate the identity of the payer, the amount of the payment, and that the remuneration was not born by a PE or a fixed place which the employer has in the territory of the ROC, while filing the annual income tax return or filing a tax return and making tax payment. The tax collection authority-in-charge shall determine the amount of income which is entitled to the reduced tax rate or exemption. In accordance with the provisions for income from employment under the DTA, where a resident of the other Contracting State resides in the territory of the ROC for a period or periods of time aggregated exceeding a certain duration of time, and is entitled to the reduction in or exemption from income tax, the duration of time shall be determined by the aggregation of days commencing from the next day of the arrival and ending on the day of departure, and include weekends, national holidays, holidays, days off due to personal reasons, sickness, death in the family, the departure day, and temporary cessation of work due to strikes, training, etc. Article 17 Where a resident of the other Contracting State derives income from ROC sources, other than those provided in the proceeding four articles, and is entitled to a reduced tax rate or exemption in accordance with the provisions of the DTA, such person shall submit the Resident Certificate issued by the tax authority of the other Contracting State along with other relevant documents and apply to the tax collection authority-in-charge where the payer of such income is located for approval. Where the income is subject to withholding tax under Article 88 of the Income Tax Act, the tax collection authority-in-charge shall, when issuing the approval, simultaneously notify the tax withholder of the reduction or exemption from the withholding. The aforementioned resident of the other Contracting State, when in accordance with the Income Tax Act that such resident shall file the annual income tax return or file a tax return and make tax payment, may submit the documents provided in the preceding paragraph for the application of the DTA while filing the tax return. The tax collection authority-in-charge shall determine the amount of income which is entitled to the reduced tax rate or exemption. Chapter 4 Determination of the Amount of Taxable Income Article 18 Where an enterprise of the other Contracting State carries on business in the territory of the ROC through a PE situated therein, the business profits which are attributed to such PE shall be determined in accordance with the following provisions and be subject to income tax accordingly: 1. The PE shall be treated as if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of the other Contracting State of which it is a PE. The profits attributable to the PE shall be determined in accordance with the provisions of the “Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s Length Transfer Pricing,” and documents shall be prepared which are sufficient to prove that the attributable profits are determined in accordance with the arm’s length transfer pricing principle for assessment by the tax collection authority-in-charge. Where the enterprise of the other Contracting State attributes the overall profits deriving in the territory of the ROC by the sale of goods or products or provision of services therein to such PE of the enterprise, the profits to be attributed to the PE may be determined without the requirement to provide the transfer pricing documents. 2. Where the enterprise of the other Contracting State is allowed as deductions expenses which are incurred for the purposes of the operation of the PE in determining the profits of a PE, such determination shall be governed by the provisions of the Income Tax Act, the “Guidelines for Examination of Profit-Seeking Enterprise Income Tax”, the “Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s Length Transfer Pricing”, and other relevant laws or regulations. Article 19 Where a resident of the other Contracting State derives income from performing professional services or other activities of an independent character within the territory of the ROC and such income is taxable according to the domestic law, the taxable income may be determined by the deduction of relevant costs and expenses from the remuneration of such services or activities, subject to the condition that the relevant account books or documents of evidence can be provided in accordance with the Income Tax Act and relevant laws or regulations. In the case that the aforementioned professional services or other activities of an independent character are partially rendered outside the territory of the ROC, the resident may be allowed to apply, to the tax collection authority-in-charge where the payer of such income is located to be taxed only on the income derived from the services or activities which is rendered within the territory of ROC, subject to the condition that the relevant contracts and documents for the purposes of the determination of the income are available. Article 20 Where a resident of the Contracting State derives income from employment, such as salaries, wages and other similar remuneration, such income from employment shall be levied based on the proportion of the days of his or her actual presence in the territory of the ROC to the whole period of employment. However, in the case that the ratio of the contribution attributed to the services performed within the territory of the ROC is higher than the aforesaid proportion, this latter ratio shall be used as basis for the calculation of the income from employment from ROC source. Chapter 5 Procedure of Application and Tax Return Article 21 Where a resident of the other Contracting State derives income which, in accordance with the provisions of the DTA, may be taxed in the ROC, the relevant assessment and collection procedure shall be governed by the provisions of the Income Tax Act, the Income Basic Tax Act, and relevant laws and regulations, unless otherwise provided in the DTA, these Regulations, and relevant laws and regulations. Article 22 The enterprise of the other Contracting State, whose PE within the territory of the ROC does not conform to the regulation of a fixed place of business or a business agent set out in Article 10 of the Income Tax Act, shall pay the profit-seeking enterprise income tax in accordance with the following provisions: 1.　When the enterprise receives the income subject to withholding tax under Article 88 of Income Tax Act, the tax withholder shall withhold the tax payable at the time of payment according to the prescribed tax rates and withholding procedures. Such enterprise may appoint an individual residing in the territory of the ROC or a profit-seeking enterprise having a fixed place of business within the territory of the ROC as an agent in charge of filing a tax return and make tax payment. Such agent may apply to the tax collection authority-in-charge where the payer of such income is located for the deduction of relevant costs and expenses for the enterprise while filing the tax return. In such case, the amount of the tax withheld at the time of payment shall be deducted from the amount of income tax payable in accordance with the provisions of the Income Tax Act. 2.　When the enterprise receives income which is not subject to withholding tax under Article 88 of the Income Tax Act, it may appoint an individual residing in the territory of the ROC or a profit-seeking enterprise having a fixed place of business within the territory of the ROC as an agent in charge of filing of a tax return and make tax payment. That agent may apply to the tax collection authority-in-charge where the agent is located for the deduction of relevant costs and expenses while filing the tax return. 3.　The person who applies for the deduction of relevant costs and expenses referred to in the preceding two paragraphs shall prepare relevant accounting books and records, reports certified by a certified public accountant, and transfer pricing documentation, and make them available for inspection by the tax collection authority-in-charge. Article 23 In the case that an individual who is the resident of the other Contracting State and whose spouse is a resident of the ROC, derives dividends, interests, royalties and technical fees from ROC sources, he or she may apply for the limited tax rate, as stipulated in the DTA, to be withheld in accordance with Article 15 of these Regulations. In such a case, the requirement for joint filing with his or her spouse, in accordance with Article 15 of the Income Tax Law, shall not apply. Article 24 In the case that the income derived by a resident of the other Contracting State subject to withholding tax under Article 88 of the Income Tax Act has already been taxed in accordance with the “Standard of Withholding Tax Rates for Various Incomes,” the income recipient or tax withholder may, within five years from the tax payment date, submit the relevant documents stated under Articles 13, 14, 15, 16 or 17 of these Regulations and the withholding tax statements, and apply to the tax collection authority-in-charge which originally handled the withholding tax case for a refund of tax overpaid. The income recipient or tax withholder may also, by the district of the national tax administration where the tax withholders are located, calculate the total amount of tax overpaid by summing up the withholding tax already declared and paid and the withholding tax payable in accordance with the DTA, and apply to the national tax administration-in-charge (head office) for a refund of tax overpaid. A resident of the other Contracting State who has derived income subject to withholding tax under Article 88 of the Income Tax Act, and has filed a tax return in accordance with the Income Tax Act, may submit the relevant documents stated under Articles 13, 14 or 17 of these Regulations, along with the tax return and original copy of the tax payment statement, and apply to the tax collection authority-in-charge which originally handled the tax filing case for a refund of tax overpaid within five years from the tax payment date. The income recipient or tax withholder may appoint an individual residing in the territory of the ROC or a profit-seeking enterprise having a fixed place of business within the territory of the ROC to file for a refund of the overpaid income tax prescribed in the preceding two paragraphs. Article 25 A resident of the other Contracting State who has derived income subject to withholding tax under Article 88 of the Income Tax Act may, by the district of the national tax administration where the tax withholders are located, pay the total amount of the supplementary tax to the national tax administration-in-charge (head office), in the event of the underpayment or over-refunding of tax as a result of misapplication of tax law or miscalculation. Article 26 The resident of the ROC shall submit the tax payment certificate issued by the tax authority of the other Contacting State when applying for a foreign tax credit in accordance with the provisions for elimination of double taxation under the DTA. The certificate shall record the taxable year, items, amount of tax payable, tax rate, and the tax payment. The limitation and the calculation method of foreign tax credits shall be in accordance with the DTA, the Income Tax Act, the Income Basic Tax Act, and relevant laws and regulations. Where the income derived from the other Contracting State is subject to the exemption or the limited tax rate in that State in accordance with the provisions of the DTA, but no application has been made for the exemption or the reduction of such income, the overpaid foreign tax credit on such income may not be claimed to offset the tax payable in the ROC. Article 27 The resident of the ROC, in applying for tax sparing under the provisions for elimination of double taxation under the DTA, shall provide the certificate issued by the tax authority of the other Contracting State, which shall record the laws applied, the amount of income, and the amount of the tax reduction or exemption, etc. The tax sparing referred to in the preceding paragraph shall not include the foreign tax credits granted by the DTA between the other Contracting State and a third party. Chapter 6 Issuance of Certificates Article 28 The resident of the ROC may apply to the tax collection authority-in-charge for the issuance of a Resident Certificate for the purpose of the application of the DTA in the other Contracting State. The tax collection authority-in-charge shall issue the Resident Certificate of the taxable year after auditing the information of the applicant and confirming his or her resident status. With respect to the trust funds regulated by Paragraph 6, Article 3-4 of the Income Tax Act, enterprises engaged in trust funds or securities investment trust funds, authorized by the beneficiaries of the funds, shall submit the list of beneficiaries and apply to the tax collection authority-in-charge where the enterprise is registered for the application of the Resident Certificates of the beneficiaries. The tax collection authority-in-charge shall issue the Resident Certificates according to the classification of the trust fund after auditing the resident status of the beneficiaries. In the case that any of the beneficiaries are non-residents of the ROC, the proportion of the units of the trust fund which are held by the residents of the ROC shall be recorded on the Resident Certificates. Article 29 A resident of the other Contacting State shall apply for the issuance of a tax payment certificate for the purpose of applying for foreign tax credits to the tax authority in that State. Chapter 7 Mutual Agreement and Exchange of Information Article 30 In the case that the status of the resident is required to be resolved by mutual agreement according to the provisions of the DTA, the tax collection authority-in-charge shall provide the relevant facts and notify the Taxation Agency, Ministry of Finance to request the competent authorities of the other Contracting State to determine the status of the resident. Article 31 In the case that a resident of the ROC considers that the actions of one or both of the Contracting States will result in him or her being subject to taxation not provided for in accordance with the provisions of the DTA, such person may present his or her case to the tax collection authority-in-charge. The tax collection authority-in-charge shall first check whether the appeal in the case is reasonable, whether the necessary actions have been conducted for the case, or whether the issue could be resolved unilaterally by our side. If necessary, the tax collection authority-in-charge shall request the Taxation Agency, Ministry of Finance to contact the other Contracting State to settle the issue. Article 32 After issuing a Resident Certificate according to Article 28, the relevant income data provided by the other Contracting State shall be filed and delivered by the tax collection authority-in-charge to the Financial Data Center, Ministry of Finance at the end of the year. The cases approved under Articles 13 to 17 shall be filed and delivered by the tax collection authority-in-charge to the Financial Data Center, Ministry of Finance at the end of the year. Article 33 The tax collection authority-in-charge shall contact the Taxation Agency, Ministry of Finance to request the other Contracting State to exchange information as is relevant for the carrying out of domestic auditing procedures in accordance with the provisions for exchange of information under the DTA. When the competent authority of the other Contracting State requests information concerning property, income, business, and tax payment of the taxpayers, the Taxation Agency, Ministry of Finance shall be in charge of the request and the response, and the tax collection authority-in-charge shall assist in providing and processing the information. Chapter 8 Supplemental Provisions Article 34 These Regulations shall come into effect from the date of promulgation. These regulations shall be applied to cases which have not yet been settled by the date of coming into effect of these Regulations.

Value-added and Non-value-added Business Tax Act(Announced Date： 2010-05-05)

2.16.886.101.20003.20004.20002 — Fri, 23 Jul 2010 00:00 0 GMT

Article 7-1 amended on 5 May, 2010 by Presidential Decree Hua-tzung-1 Yi No. 09900110351. Article　7-1 Foreign enterprises, institutions, organizations, or associations having no fixed place of business within the territory of the ROC, which purchase the goods or services on which value-added business tax(VAT) is levied to a total of a certain amount of money or more within the ROC for the purpose of engaging in exhibitions or temporary business activities within the period of one year may qualify for a VAT refund on the aforesaid goods or services; however, in the case of the following conditions such goods or services shall not be applicable for tax refund:(i) where the documents of the goods or services purchased are not obtained or kept as in the first paragraph above, or(ii)where the goods or services are purchased under the provisions of subparagraphs 2 to 5 of Article 19 of the Act. The aforesaid institutions may qualify for VAT refund, provided that reciprocal treatment, or exemption from similar taxes, is given to the same institutions of the ROC by the foreign country in which they are performing such activities as are described also above. Regulations concerning the calculation of the one-year period, the scope of exhibitions or temporary business activities, the definition of the certain amount of money or more, the obtaining of documentary evidence, the attached documents, the period of time within which application may be made for the refund and other relevant matters specified in the first paragraph, shall be prescribed by the Ministry of Finance.

Uniform-Invoice Prize Winning Numbers for Months 05-06, Year 2010

2.16.886.101.20003.20004.20002 — Sun, 25 Jul 2010 00:00 0 GMT

Uniform-Invoice prize winning numbers for May and June,2010 have been released.The grand Prize winning number are 05920315、22880783、72496073 and 3 sets of the first prize are 32280685、37627092、84256998. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

The proposed amendment to Article 2 of The Tobacco and Alcohol Tax Act

2.16.886.101.20003.20004.20002 — Wed, 28 Jul 2010 00:00 0 GMT

NOTIFICATION 1. Member to Agreement notifying: The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) 2. Agency responsible: Taxation Agency, Ministry of Finance 3 Title and text available: The proposed amendment to Article 2 of the Tobacco and Alcohol Tax Act 4. Summary: To add a definition of an alcohol product ‘cooking rice wine’ as a kind of cooking alcohol product providing the alcohol content in no excess of 20 percent of the total volume. The labeling of “exclusively used for cooking” on the package is required. 5. Comment deadline: 27 September, 2010 6 Contact E-mail: b0@mail.mof.gov.tw

Starting from July 1, 2010, Taiwan and German firms purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or tempo

2.16.886.101.20003.20004.20002 — Wed, 18 Aug 2010 00:00 0 GMT

“Exhibitors’ VAT Refund System” The Ministry of Finance (MOF) proclaimed that since July 1, 2010, foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC purchase the goods or services on which VAT is levied to a total of NT$5,000 or more （NT$2,500 or more within the period of July 1 to December 31, 2010） for the purpose of engaging in exhibitions, business trips, investigation of market conditions, performance of market research, generation of business, holding of marketing seminars, and other such temporary business activities within the period of one year, such entities or their agents may file with an application form with the MOF, affixed with relevant attachments and documents to the competent tax authority for a VAT refund based on the principal of reciprocity in accordance with Article 7-1 of “The Value-Added and Non-Value-Added Business Tax Act” and “The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC”. The MOF expressed that the proportion of Taiwan firms going to Europe and engaging in exhibitions is increasing every year. The number of the firms attending exhibitions in Cologne, Munich, Frankfurt, Hanover, and Berlin in Germany averages up to 4,250 every year. After the Economic Division, Taipei Representative Office in the Federal Republic of Germany was active in coordinating with the federal Ministry of Finance of Germany. Germany added Taiwan to its reciprocal list so that when Taiwan firms engage in exhibitions and temporary business activities in Germany, they may qualify for a VAT refund based on the principal of reciprocity starting from July 1, 2010. The effect of this reciprocity will not just lighten the operational costs of Taiwan firms and promote international competitiveness in exporting, but also attract German firms to engage in exhibitions in Taiwan at the same time which will benefit local businesses. The MOF has communicated to the Ministry of Economic Affairs (MOEA) and asked it to request its relevant overseas units to confirm if any similar mechanism for a VAT refund is supplied by the government where the unit is based. The MOF has also published Chinese and English guidelines for claiming VAT refunds and provided them to the Taiwan External Trade Development Council（TAITRA）and the relevant overseas units of the MOEA for promotion and use. The relevant information can be browsed and downloaded at the special zone “Exhibitors’ VAT Refund System” of the eTax Portal, MOF website ( www.etax.nat.gov.tw).

Uniform-Invoice Prize Winning Numbers for Months 07-08, Year 2010

2.16.886.101.20003.20004.20002 — Sat, 25 Sep 2010 00:00 0 GMT

Uniform-Invoice prize winning numbers for July and August,2010 have been released.The grand Prize winning number are 79721354、10175755、59029610 and 3 sets of the first prize are 13492740、22791838、12994137. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Income Tax Act　(Announced Date： 2010-06-15)

2.16.886.101.20003.20004.20002 — Fri, 15 Oct 2010 00:00 0 GMT

Issuance of Decree Hua-tzung-1 No. 09900150571 by the President on 15 June 2010.The amendments to Article 5 and Article 126 of the Income Tax Act have been promulgated. Article　5　 The personal exemption for consolidated income tax shall be limited to NT$ 60,000 each person per year. If the total increase of the consumer price index has reached a figure of 3% or higher compared to the index of the year of previous adjustment, the exemption shall be adjusted accordingly. The adjusted amount shall be calculated in units of NT$1,000; if the amount is less than NT$1,000, it shall be calculated as a unit of NT$1,000 and rounded up or down to the nearest NT$1,000 using the traditional method. The tax brackets and rates of consolidated income tax are as follows: 1. If the annual total net consolidated income is less than or equal to NT$ 500,000, the tax rate shall be 5%. 2. If the annual total net consolidated income is above NT$ 500,000 to NT$ 1,090,000, the income tax payable shall be NT$ 25,000 plus 12% for the portion of income more than NT$ 500,000. 3. If the annual total net consolidated income is above NT$ 1,090,000 to NT$ 2,180,000, the income tax payable shall be NT$ 95,800 plus 20% for the portion of income more than NT$ 1,090,000. 4. If the annual total net consolidated income is above NT$ 2,180,000 to NT$ 4,090,000, the income tax payable shall be NT$313,800 plus 30% for the portion of income more than NT$ 2,180,000. 5. If the annual total net consolidated income is above NT$ 4,090,000, the income tax payable shall be NT$ 886,800 plus 40% for the portion of income more than NT$ 4,090,000. If the total increase of the consumer price index has reached a figure of 3% or higher compared to the index of the year of previous adjustment, the tax brackets as described in the preceding Paragraph shall be adjusted accordingly. The adjusted amount shall be calculated in units of NT$10,000; if the amount is less than NT$10,000, it shall be calculated as a unit of NT$10,000 and rounded up or down to the nearest NT$10,000 using the traditional method. The exemption and the tax brackets for consolidated income tax shall be publicly announced by the Ministry of Finance in accordance with the preceding Paragraphs 1 & 3 before the beginning of each year. The consumer price index as indicated above shall be publicly released by the Directorate-General of Budget, Accounting and Statistics, Executive Yuan based on the average consumer price index for 12 months up to the end of October of the previous year. The minimum taxable amount and rates for profit-seeking enterprise income tax are as follows: 1. If the total taxable income of a profit-seeking enterprise is NT$ 120,000 or less, the profit-seeking enterprise is exempt from tax. 2. If the total taxable income of a profit-seeking enterprise is more than NT$120,000, the income tax rate shall be 17%. However, the income tax payable shall not exceed one half of the portion of taxable income more than NT$ 120,000. Article　126　 This Act shall come into force from the date of its original promulgation provided with the condition, however that the text of Article 17 amended on December 6, 2005 shall come into force retroactively on January 1, 2005 ；the text in Category 9, Paragraph 1 of Article 14, amended on December 14, 2007 shall come into force on January 1, 2008 and the text of Article 17 amended on December 12, 2008 shall come into force retroactively on January 1, 2008. The text in Paragraph 2 of Article 5 amended on May 1, 2009 and the text in Paragraph 5 of the same Article amended on May 28, 2010 shall come into force in fiscal year 2010. The effective date of the amendments made on May 29, 2001 shall be decided by the Executive Yuan.

Regulations for the Collection of Tobacco and Alcohol Tax　(Announced Date： 2010-06-17)

2.16.886.101.20003.20004.20002 — Tue, 26 Oct 2010 00:00 0 GMT

Article 2 deleted, Articles 13, 18, 37 and 39 amended promulgated on 17 June 2010 per MOF Decree No. 09904527660. Article　13 When a manufacturer files a monthly tax return for taxable tobacco or alcohol products released from the factory by submitting a Tax Calculation Statement, the following documents shall be attached: (1)Copy of tax payment receipt; (2)Monthly production/sales statement, and tax-exempt tobacco or alcohol ex-factory statement (3)Monthly statement of tax-exempt raw materials usage status (4)Monthly statement of factory delivery sheets usage status (5)Monthly statement of in and out of an untaxed warehouse (6)Other documents as prescribed by the Ministry of Finance Tobacco manufacturers shall pay the health and welfare surcharge when filing the tobacco tax return. Articles 18 The taxpayer for imported taxable tobacco and alcohol products shall declare and pay tobacco or alcohol tax as well as the health and welfare surcharge to the Customs at the time of importation. Articles 37 If taxed tobacco or alcohol products become disqualified according to governmental standards due to deterioration in quality or damage, the manufacturer should provide the information on location of storage, and method and date of disposition, and request the competent tax authority where the goods are located to dispatch an officer to oversee the disposal or melting down of those goods. After the goods are thus disposed of, the manufacturer may apply to the local tax authority or customs house for refund of tobacco or alcohol tax and the health and welfare surcharge paid. Articles 39 If tobacco or alcohol products are physically destroyed in a fire, lost at sea, or destroyed in other force majeure events after they have been released from the factory or by the Customs, the manufacturer or importer may apply to the competent tax authority or customs office for refund of tax and surcharge paid by presenting a damage list and support documents within thirty (30) days after the occurrence of the event.

The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organiza

2.16.886.101.20003.20004.20002 — Tue, 26 Oct 2010 00:00 0 GMT

The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC Promulgated by the Ministry of Finance on 30 June 2010 under Decree No. 09904524520.

Uniform Invoice Award Regulations (Announced Date： 2010-06-17)

2.16.886.101.20003.20004.20002 — Tue, 26 Oct 2010 00:00 0 GMT

Amendment to Articles 8 by the Ministry of Finance under decree No. 09904526720 on 17 June 2010. Articles 8 Prizewinners may, within three months from the sixth day of the next month after each prize drawing, claim their prizes at the local prize disbursement institutions during the office hours announced by the institutions.

Tobacco and Alcohol Tax Act (Announced Date： 2010-09-01)

2.16.886.101.20003.20004.20002 — Tue, 26 Oct 2010 00:00 0 GMT

Amendments to Article 2 of the Tobacco and Alcohol Tax Act were promulgated by Presidential Decree No. 09900224421 on 1 September, 2010. Article 2 The definitions of terms used in this Act are as follows: 1."Manufacture" includes activities related to manufacturing or re-packaging. 2."Tobacco products" refers to products made, wholly or in part, with tobacco plants or other tobacco plant substitutes as ingredients, in a form suitable for smoking, chewing, keeping in the mouth, sniffing or any other method. Tobacco products are classified into the following categories: (1)Cigarettes: tobacco products made by cutting tobacco plants into shreds which, after processing, are rolled with cigarette paper, with or without a filter added thereto. (2)Cut tobacco: tobacco products made by cutting tobacco plants into shreds which, after processing, are suitable for smoking. (3)Cigars: tobacco products made with cigar tobacco plants which, after processing, are wrapped and rolled into an elongated form by using filling leaves as buds and wrapping with center leaves and outer leaves, or non-leaf-rolled cigars made with cigar tobacco plants as the primary ingredients and having a distinctive cigar aroma. (4)Other tobacco products: tobacco products other than cigarettes, cut tobacco or cigars. 3."Alcohol products" refers to beverages having an alcohol content in excess of 0.5 percent by volume, or un-denatured ethyl alcohol and other ethyl products which can be used for manufacturing or preparing the aforesaid beverages. However, this does not include medicated wines as prescribed in Paragraph 1, Article 4 of the Tobacco and Alcohol Administration Act. Alcohol products are classified into the following categories: (1)Brewed alcoholic beverages: following alcoholic beverages brewed from grains, cereals, fruits or other agricultural products containing starch or sugar, either by saccharification or not. (i)Beer: saccharized and fermented carbonated alcoholic beverages brewed from malt and hops as primary ingredients, with or without other cereals or starch as supplementary ingredients; complementary plant ingredients may or may not be added. (ii)Other brewed alcoholic beverages: Brewed alcoholic beverages other than beer, including various fruit-brewed alcoholic beverages, grain and cereal-brewed alcoholic beverages, honey-brewed alcoholic beverages and other alcoholic beverages made by using the brewing method. (2)Distilled spirits: alcoholic beverages made with grains, cereals, fruits or agricultural products plants containing starch or sugar as ingredients upon fermentation and distillation, after or without saccharification. (3)Reprocessed alcoholic beverages: alcoholic beverages made by using ethyl alcohol, brewed alcoholic beverages or distilled spirits as the base liquor, and adding supplemental ingredients of a zoological or botanical nature, herbs, minerals or other food additives for purposes of seasoning. Extracts of added ingredients should not be less than or equal to 2% of total volume. (4)Cooking alcoholic products:alcoholic products specified for cooking (i)General cooking alcoholic products: alcoholic beverages utilizing liquor made from cereals or other starch-containing plants added with ethyl alcohol after saccharification as a base, or utilizing brewed alcoholic beverages, distilled spirits or ethyl alcohol directly as a base; with a salt content of more than 0.5% of the total volume, and with or without other flavors. The aforesaid salt content of more than 0.5% shall refer to the condition that each 1,000ml of the cooking alcoholic beverage contains more than 5g of salt. (ii)Cooking rice wine: alcoholic products made from rice as raw material by saccharification, fermentation, distillation, and either blended or not blended with ethyl alcohol, the alcohol content of which does not exceed 20% of the total volume, and the label on the container shall specify ‘exclusively used for cooking’. (5)Other alcoholic beverages: alcoholic beverages other than those specified in items (1) to (5), including powder liquors and other unlisted liquors. (6)Ethyl alcohol: un-denatured ethyl alcohol with an alcohol content in excess of 90 percent of the total volume. 4.”Alcohol content” refers to the volume percentage of ethyl alcohol at 20 degree Celsius.

Firms of Taiwan and Slovenia purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan or Slovenia, based on the principle of reciprocity, may qualify for a VAT refund in accordance with local tax laws from 18 November 2010

2.16.886.101.20003.20004.20002 — Wed, 24 Nov 2010 00:00 0 GMT

The Ministry of Finance (MOF) proclaimed that foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC which purchase goods or services on which VAT is levied to a total of NT$5,000 or more （NT$2,500 or more within 2010） for the purpose of engaging in exhibitions, business trips, investigation of market conditions, performance of market research, generation of business, holding of marketing seminars, and other such temporary business activities within the period of one year may qualify for a VAT refund based on the principle of reciprocity in accordance with Article 7-1 of “The Value-Added and Non-Value-Added Business Tax Act” and related regulations starting from 1 July 2010. The MOF expressed that after the Economic Division, Taipei Economic and Cultural Office in Austria was active in coordinating with the Ministry of Finance of Slovenia, Taiwan and Slovenia made declaration towards each other that starting from 18 November 2010, the firms of Taiwan and Slovenia purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan or Slovenia, based on the principle of reciprocity, may qualify for a VAT refund in accordance with local tax laws. After Germany added Taiwan to its list of reciprocal parties so that when Taiwan firms engage in exhibitions and temporary business activities in Germany, they may qualify for a VAT refund based on the principle of reciprocity starting from 1 July, 2010, Slovenia has become the second country to add Taiwan to its list. This reciprocity will not just lighten the operational costs of Taiwan firms and promote international competitiveness in exporting, but also attract the firms of Slovenia to engage in exhibitions in Taiwan at the same time which will also benefit local businesses. The MOF pointed out that the relevant overseas units of the Bureau of Foreign Trade, Ministry of Economic Affairs (MOEA) have confirmed that in Bahrain, Hong Kong (S.A.R.), Kuwait, Macao (S.A.R.), Qatar, and Saudi Arabia no business tax or similar taxes are levied at present, so in line with Article 7-1 above, from 1 July 2010, the firms in the above countries and regions without fixed places of business within the territory of the ROC, which purchase the goods or services eligible for the VAT for the purpose of engaging in exhibitions or temporary business activities, may qualify for a VAT refund in Taiwan. In addition, the MOF has communicated to the MOEA to request its relevant overseas units to confirm if any similar mechanism for a VAT refund is supplied by the government where the unit is based. The MOF is active, with the assistance of the MOEA, in promoting the extension of reciprocity for VAT refunds under the terms of Article 7-1 so as to benefit Taiwan business people. The relevant information can be browsed and downloaded at the special zone “Exhibitors’ VAT Refund System” of the eTax Portal, MOF website ( www.etax.nat.gov.tw).

Starting from 1 July , 2010, Taiwan and Swiss firms purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan or Switzerland, based on the principle of reciprocity, may qualify for a VAT refund in accordance with local tax laws

2.16.886.101.20003.20004.20002 — Fri, 26 Nov 2010 00:00 0 GMT

The Ministry of Finance (MOF) proclaimed that since 1 July, 2010, foreign enterprises, institutions, organizations, or associations without fixed places of business within the territory of the ROC purchasing the goods or services on which VAT is levied to a total of NT$5,000 or more （NT$2,500 or more within 2010）for the purpose of engaging in exhibitions or temporary business activities within the period of one year may qualify for a VAT refund based on the principle of reciprocity in accordance with Article 7-1 of “The Value-Added and issued the related regulations. 　　The MOF expressed that after the Economic Division, Taipei Representative Office in Switzerland was active in coordinating with the Federal Ministry of Finance of Switzerland, Switzerland added Taiwan to its list of reciprocal parties so that when Taiwan firms engage in exhibitions and temporary business activities in Switzerland, they may qualify for a VAT refund based on the principle of reciprocity starting retroactively from 1 July, 2010. This reciprocity will not just lighten the operational costs of Taiwan firms and promote international competitiveness in exporting, but also attract the firms of Switzerland to engage in exhibitions in Taiwan at the same time which will also benefit local businesses.

Uniform-Invoice Prize Winning Numbers for Months 09-10, Year 2010

2.16.886.101.20003.20004.20002 — Thu, 25 Nov 2010 00:00 0 GMT

Uniform-Invoice prize winning numbers for September and October,2010 have been released.The grand Prize winning number are 55138690、14764045、41175733 and 3 sets of the first prize are 68787608、77978391、11071074. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income to be implemented by the Taiwan Taxation Agency and the French Public Finance General Directorate.

2.16.886.101.20003.20004.20002 — Fri, 31 Dec 2010 00:00 0 GMT

The Taipei Representative Office in Hungary and the Hungarian Trade Office in Taipei desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

2.16.886.101.20003.20004.20002 — Wed, 29 Dec 2010 00:00 0 GMT

The Regulations Governing Application of Investment Tax Credits to Private Institutions Participating in Public Infrastructure Projects (Announced Date： 2010-07-12)

2.16.886.101.20003.20004.20002 — Mon, 10 Jan 2011 00:00 0 GMT

Issuance of Explanatory Decree No. 09900253670 by the MOF on 12 July 2010: The amendments to “The Regulations Governing Application of Investment Tax Credits to Private Institutions Participating in Public Infrastructure Projects” have been promulgated.

Uniform-Invoice Prize Winning Numbers for Months 11-12, Year 2010

2.16.886.101.20003.20004.20002 — Tue, 25 Jan 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for November and December,2010 have been released.The grand Prize winning number are 35666063、12567075、45687440 and 3 sets of the first prize are 68478547、30460619、53362599. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Uniform-Invoice Prize Winning Numbers for Months 1-2, Year 2011

2.16.886.101.20003.20004.20002 — Fri, 25 Mar 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for January and February,2011 have been released.The Special Prize winning number is 80726333.The grand Prize winning number is 65399481 and 3 sets of the first prize are 54498579、93140724、97659630. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Uniform-Invoice Prize Winning Numbers for Months 3-4, Year 2011

2.16.886.101.20003.20004.20002 — Wed, 25 May 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for March and April,2011 have been released.The Special Prize winning number is 19739825.The grand Prize winning number is 78112735 and 3 sets of the first prize are 96856009、15914353、26824072. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Uniform-Invoice Prize Winning Numbers for Months 5-6, Year 2011

2.16.886.101.20003.20004.20002 — Mon, 25 Jul 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for May and June,2011 have been released.The Special Prize winning number is 11867726.The grand Prize winning number is 19922510 and 3 sets of the first prize are 55739689、29612544、17077259. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Starting from 1 January, 2011, the firms of Belgium purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan, based on the principle of reciprocity, may qualify for a VAT refund

2.16.886.101.20003.20004.20002 — Wed, 14 Sep 2011 00:00 0 GMT

Uniform-Invoice Prize Winning Numbers for Months 7-8, Year 2011

2.16.886.101.20003.20004.20002 — Sun, 25 Sep 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for July and August,2011 have been released.The Special Prize winning number is 02283153.The grand Prize winning number is 53189830 and 3 sets of the first prize are 96767598、32224061、55882134. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,pleaseclick here.

Uniform-Invoice Prize Winning Numbers for Months 9-10, Year 2011

2.16.886.101.20003.20004.20002 — Fri, 25 Nov 2011 00:00 0 GMT

Uniform-Invoice prize winning numbers for September and October,2011 have been released.The Special Prize winning number is 71524465.The grand Prize winning number is 57659487 and 3 sets of the first prize are 46345106、86062929、29207557. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

The firms of Taiwan and 19 countries（areas） purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan or the 19 countries（areas）, based on the principle of reciprocity, may qualify for a VAT refund in accordance with local tax laws

2.16.886.101.20003.20004.20002 — Fri, 9 Dec 2011 00:00 0 GMT

Article 36-1 was added and promulgated on 23 November 2011 by Presidential Decree No. Hua-Tsung-1-Yi 1000025971. The effective date of the amendment to the act shall be prescribed by the Executive Yuan.

2.16.886.101.20003.20004.20002 — Wed, 23 Nov 2011 00:00 0 GMT

Value-added and Non-value-added Business Tax Act Article　36-1 Public and private schools at any level or educational or research institutions purchasing services provided by foreign enterprises, institutions, groups or organizations having no fixed place of business within the territory of the R.O.C. to be used for education, research, or experiment are not required to pay business tax according to the first paragraph of the preceding Article. The preceding paragraph shall be applicable to cases not currently being assessed or pending final decision at the effective date of the amendment of this Article.

Article 17 amended and promulgated by Presidential Decree Hua-tzung-1 No.10000246131 on November 9, 2011.

2.16.886.101.20003.20004.20002 — Wed, 9 Nov 2011 00:00 0 GMT

Income Tax Act Article　17　 The net consolidated income of an individual shall be the gross consolidated income as computed in accordance with the preceding four Articles less the following exemption and deductions: 1. Exemption: Taxpayers may deduct a prescribed amount of exemption for themselves, their spouses, and dependents that meet any of the conditions below. Furthermore, the exemption amount for taxpayers and spouses that are at least seventy years old shall be increased by 50%. In accordance with Paragraph 2, Article 15, however, the taxpayer shall not be permitted to make a duplicate claim for exemption for a person whose amount of salary/wages income tax payable has been computed separately: (1) Lineal ascendant(s) of the taxpayer and his (her) spouse having attained sixty years of age, or being incapable of earning a livelihood and being supported by the taxpayer. If a lineal ascendant being supported by the taxpayer has attained seventy years of age, the exemption amount for said lineal ascendant shall be increased by 50%. (2) Children of the taxpayer who are under twenty years of age, or who, although having attained twenty years of age, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood. (3) Brothers and sisters of the taxpayer and his(her) spouse who are under twenty years of age, or who, although having attained twenty years of age, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood. (4) Other relatives or family members of the taxpayer within the meaning of sub-paragraph 4, Article 1114, or paragraph 3, Article 1123, of the Civil Code who and under twenty years of age or over sixty years of age and are incapable of earning a livelihood and are supported by the taxpayer. 2. Deductions: A taxpayer may select either the "Standard Deduction" or "Itemized Deductions" and may, in addition thereto, declare special deductions: (1) Standard Deduction: NT$ 73,000 for a single taxpayer; with a deduction to double that of the amount for a single taxpayer for a taxpayer and his or her spouse. (2)Itemized Deductions: i. Contributions and donations: For the taxpayer, his (her) spouse and dependent(s), contributions and donations made to educational, cultural, public welfare or charitable organizations or associations in a total amount not in excess of 20% of the total amount of the gross consolidated income is deductible. However, there is no limit to the amount of donations or contributions made for the support of national defense or troop-cheering or contributions to the government. ii. Insurance premiums: Premiums paid by or for the taxpayer, his (her) spouse or lineal dependent(s) on life insurance, labor insurance , national pension insurance and insurance for military personnel, public servants or teachers, with the deductible amount not exceed NT$ 24,000 for each person per year. However, there is no limit to the amount of the premium paid for national health insurance. iii. Medical and childbirth expenses: Medical and childbirth expenses incurred by the taxpayer, his (her) spouse, or dependent(s) provided that payments so made are limited to that paid to public hospitals, the hospitals or clinics appointed under national health insurance, or those hospitals having complete and accurate accounting records as recognized by the Ministry of Finance. However, no deduction shall be made for the portion (of such expense) covered by an insurance payment. iv. Losses from disaster: The portion of loss incurred by the taxpayer, his (her) spouse or dependent(s) from a disaster caused by force majeure. However, no deduction shall be made for the portion of loss for which insurance benefit or relief has been received. v. Interest on a house mortgage: The interest payable on a loan from a financial institution by a taxpayer, his (her) spouse and dependent(s) for the purpose of a house for his (her) own use may be deducted from his (her) consolidated income, with the deductible amount not to exceed NT$ 300,000 per year per tax return. However, if a special deduction for savings and investment has been made in the same tax return, the amount of such special deduction shall be subtracted from the aforesaid interest of the house mortgage; the deduction for interest on the house mortgage in accordance with the above mentioned provisions is limited to one house only. vi. Rent for Housing: Rent for housing in the R.O.C. paid by taxpayers, their spouses, and lineal dependent(s) and used as their own residence rather than for business or performing professional services, may be deducted from their consolidated income to the extent of NT$ 120,000 per year per tax return. However, no deduction shall be made for taxpayers who have filed "Interest on a House Mortgage" on the same tax return. (3) Special Deductions: i. Loss from property transactions: The amount of loss from property transactions incurred by a taxpayer, his (her) spouse and dependent(s) which is deductible in one year shall not exceed the declared amount of income derived from property transactions in the same year. However, if no income or no sufficient income derived from property transactions in the same year is available for deduction, the loss may be carried forward in the next three years. The provisions relating to computation of income derived from property transactions set forth in category 7, Paragraph 1, Article 14 of the Act shall apply mutatis mutandis to the computation of loss from property transactions. ii. Special deduction of income from salaries/wages: For a taxpayer, his (her) spouse and dependent(s) having income from salaries/wages, the deductible amount not to exceed NT$100,000 per year may be deducted for each person. iii. Special deduction for savings and investment: For a taxpayer, his (her)spouse and dependent(s ) having Interest derived from deposits in financial institutions, income from trust funds in the nature of savings, and dividends accrued on registered share certificates publicly issued and listed on the market by a company , the deductible amount should not exceed NT$270,000 per year per tax return. However, this limit of deduction does not apply to the interest accrued and exempt from income tax on postal pass-book savings under the provisions of the Post Savings and Remittances Act and the interest accrued on short-term commercial papers subject to separate taxation as stipulated in this Act. iv. Special deduction for the disabled or handicapped: If the taxpayer , his (her) spouse or dependent(s) has (have) a disability certificate(s) or identification or being a patient as defined in Subparagraph 4, Article 3 of The Mental Health Act, a deduction of NT$100,000 per year may be made for each person. v. Special deduction for educational tuition: If any of the children of a taxpayer is studying in a college or university, a deduction of NT$ 25,000 per child per year may be made for his (her) educational tuition. However, the tuition of the Open University, vocational colleges, the first three years of five-year vocational colleges and students who have accepted government subsidies are excluded. vi. Special deduction for pre-school children: Starting from 2012, for a taxpayer who has children under or equal to five years of age and his or her circumstances do not fall under any of following two conditions, the amount of deduction for pre-school children is NT$25,000 per child per year: (i)The taxpayer’s annual total net consolidated income after the amount of the aforesaid deduction has been deducted is declared greater than or equal to the 20% individual income tax rate, or his or her individual income tax is declared in accordance with Paragraph 2 of Article 15 of the Act such that the declared individual income tax rate is greater than or equal to 20%. (ii)The amount of basic income of the taxpayer calculated in accordance with Article 12 of the Income Basic Tax Act is greater than the amount of deduction described in Article 13 of the Income Basic Tax Act. Where the taxpayer or his (her) spouse elects to have the tax on his (her) salary/wages computed separately in accordance with Paragraph 2, Article 15, the exemption and special deductions on income from the salary/wages computed separately shall be deducted by the receiver of the salary/wages computed separately, while other exemptions or deductions conforming to the provisions of the preceding Paragraph may not be deducted from the salary/wages computed separately, but shall instead be declared for deduction by the taxpayer. The provisions of the deductions set forth in Item 2, Sub-Paragraph 2 of Paragraph 1 of this Article shall not apply to a taxpayer who is subject to filing a final income tax return in accordance with Article 71 of this Act but fails to do so and is assessed by the tax collection authority as to his (her) tax liabilities.

Uniform-Invoice Prize Winning Numbers for Months 11-12, Year 2011

2.16.886.101.20003.20004.20002 — Wed, 25 Jan 2012 00:00 0 GMT

Uniform-Invoice prize winning numbers for November and December,2011 have been released.The Special Prize winning number is 38032017.The grand Prize winning number is 38095343 and 3 sets of the first prize are 38583186、87541883、03658286. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Uniform-Invoice Prize Winning Numbers for Months 1-2, Year 2012

2.16.886.101.20003.20004.20002 — Sun, 25 Mar 2012 00:00 0 GMT

Uniform-Invoice prize winning numbers for January and February,2012 have been released.The Special Prize winning number is 59609701.The grand Prize winning number is 07063353 and 3 sets of the first prize are 33640895、67996436、35573745. In order to increase the winning rate. For detailed information about complete winning numbers and regulations for prize money claims,please click here.

Taxation Agency,Ministry of Finance,R.O.C

Cross-strait Tax Agreement

Uniform-Invoice Prize Winning Numbers for Months 01-02, Year 2010

Morakot Reconstruction－Taxation

Exhibitors VAT Refund System

Enforcement Rules of the Income Tax Act (Announced Date： 2009-11-18 )

Land Tax Act (Announced Date：2009-12-30 )

Deed Tax Act (Announced Date： 2009-12-30 )

Uniform-Invoice Prize Winning Numbers for Months 03-04, Year 2010

Commodity Tax Act (Announced Date： 2009-12-30)

Vehicle License Tax Act (Announced Date： 2009-12-30)

Tobacco and Alcohol Tax Act (Announced Date： 2009-12-30)

Securities Transaction Tax Act (Announced Date： 2009-12-30)

Exhibitors VAT Refund System

The Enforcement Rules of the Estate and Gift Tax Act (Announced Date： 2010-01-13)

Tax Collection Act (Announced Date： 2010-01-06)

Regulations Governing the Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income

Value-added and Non-value-added Business Tax Act(Announced Date： 2010-05-05)

Uniform-Invoice Prize Winning Numbers for Months 05-06, Year 2010

The proposed amendment to Article 2 of The Tobacco and Alcohol Tax Act

Starting from July 1, 2010, Taiwan and German firms purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or tempo

Uniform-Invoice Prize Winning Numbers for Months 07-08, Year 2010

Income Tax Act (Announced Date： 2010-06-15)

Regulations for the Collection of Tobacco and Alcohol Tax (Announced Date： 2010-06-17)

The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organiza

Uniform Invoice Award Regulations (Announced Date： 2010-06-17)

Tobacco and Alcohol Tax Act (Announced Date： 2010-09-01)

Firms of Taiwan and Slovenia purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan or Slovenia, based on the principle of reciprocity, may qualify for a VAT refund in accordance with local tax laws from 18 November 2010

Uniform-Invoice Prize Winning Numbers for Months 09-10, Year 2010

Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income to be implemented by the Taiwan Taxation Agency and the French Public Finance General Directorate.

The Taipei Representative Office in Hungary and the Hungarian Trade Office in Taipei desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The Regulations Governing Application of Investment Tax Credits to Private Institutions Participating in Public Infrastructure Projects (Announced Date： 2010-07-12)

Uniform-Invoice Prize Winning Numbers for Months 11-12, Year 2010

Uniform-Invoice Prize Winning Numbers for Months 1-2, Year 2011

Uniform-Invoice Prize Winning Numbers for Months 3-4, Year 2011

Uniform-Invoice Prize Winning Numbers for Months 5-6, Year 2011

Starting from 1 January, 2011, the firms of Belgium purchasing goods and services eligible for VAT for the purpose of engaging in exhibitions or temporary business activities in Taiwan, based on the principle of reciprocity, may qualify for a VAT refund

Uniform-Invoice Prize Winning Numbers for Months 7-8, Year 2011

Uniform-Invoice Prize Winning Numbers for Months 9-10, Year 2011

Article 36-1 was added and promulgated on 23 November 2011 by Presidential Decree No. Hua-Tsung-1-Yi 1000025971. The effective date of the amendment to the act shall be prescribed by the Executive Yuan.

Article 17 amended and promulgated by Presidential Decree Hua-tzung-1 No.10000246131 on November 9, 2011.

Uniform-Invoice Prize Winning Numbers for Months 11-12, Year 2011

Uniform-Invoice Prize Winning Numbers for Months 1-2, Year 2012

Cross-strait　Tax　Agreement

Income Tax Act　(Announced Date： 2010-06-15)

Regulations for the Collection of Tobacco and Alcohol Tax　(Announced Date： 2010-06-17)