The Standards have been drawn up in accordance with the provisions of Paragraph 2, Article 2 of
the Small and Medium-sized Enterprise Development Statute (hereinafter referred to as the
The term "SME" as used in the Standards shall mean an enterprise which has completed company
registration or business registration in accordance with the requirements of the laws, and which
conforms to the following standards:
(1)The enterprise is an enterprise in the manufacturing, construction, mining or quarrying industry
with either paid-in capital of NT$80 million or less, or less than 200 regular employees.
(2)The enterprise is an enterprise in the industry other than any of those mentioned in the
ub-paragraph immediately above and either had its sales revenue of NT$100 million or less in the
previous year, or has less than 100 regular employees.
The term "small-scale enterprise" as used in Paragraph 2, Article 4 of the Statute shall mean a SME
with less than 5 regular employees.
The term "sales revenue" as used in the Standards shall be determined based on the figure as
approved by the tax authorities in the year immediately prior to the year of determination. If the
approval has not been given by the tax authorities, the determination shall be made in accordance
with the following provisions:
(1)Sales revenue shall be based on the operating revenue noted on the income tax declaration form
for the most recent year bearing the "Documents Received" seal of the tax authorities.
(2)If the enterprise is unable to obtain the document referred to in the Sub-paragraph immediately
above, sales revenue shall be based on the sales value noted on the sales and tax declaration form
for the full year of the most recent year, with commissioned sales and non-operating income
(3)In the case of sale representatives required to pay business tax by the tax authorities according to
the laws, sales revenue shall be presumed to be NT$100 million or less.
If the enterprise was established in the previous year and less than one year has elapsed since
business registration, or if business registration took place in the current year, sales revenue for the
full year shall be calculated on the basis of the conversion from the figure already declared for each
The "number of regular employee" as used in the Standards shall be based on the average monthly
number of insured persons for whom labor insurance registration has been made with the Labor
Insurance agency for the Taiwan and Fukien Region in the most recent 12 months.
An enterprises shall be deemed to be a SME if any of the following is applicable:
(1)In the case of a SME which has received guidance for expansion, where after expansion the size
of the enterprise exceeds the standards listed in Article 2, such enterprise shall continue to be
deemed to be a SME for two years immediately after the date of expansion.
(2)In the case of a SME which has received guidance for merger, where after the merger the size of
the enterprise exceeds the standards listed in Article 2, such enterprise shall continue to be deemed
to be a SME for three years immediately after the date of the merger.
(3)Where a guidance agency, guidance system or relevant agency undertakes the provision of
collective guidance for SMEs in a given industry, if some of the enterprises exceed the standards
listed in Article 2, and if the guidance agency, guidance system or relevant agency determines that
there is good reason for providing joint guidance, such enterprises shall be deemed to be SMEs
during the period of collective guidance.
The Standards shall come into effect on the date of promulgation.