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Title: Statute for Industrial Innovation Ch
Date: 2022.02.18
Legislative: 1. Full Text (72 Articles), enacted and promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-09900112301 dated May 12, 2010. Article 10 shall be effective from January 1, 2010 to December 31, 2019, while all the other articles shall come into force
from the date of promulgation.
2. Amended Articles 10 and 70 promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-10300092641 dated June 18, 2014.
3. Amended Articles 10, 33 and 72, and added Articles 12-1, 19-1 and 67-1, promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-10400152831 dated December 30, 2015. Amended Article 10 and added Articles 12-1 and 19-1 shall be effective from January 1, 2016
to December 31, 2019, while the other amended or added articles shall come into force from the date of promulgation.
4. Amended Articles 2, 8, 9, 10, 12, 12-1, 13, 18, 19-1, 27, 67-1, 68, 70, and 72, added Articles 9-1, 12-2, 23-1, 23-2, 46-1, and 67-2, and deleted Articles 6, 11, and 24, promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-10600141601 dated November
22, 2017. Articles 10, 12-1, 12-2, 19-1, and 23-2 shall be effective from November 3, 2017 to December 31, 2019, and Article 23-1 shall be effective from January 1, 2017 to December 31, 2019, while all the other amended or added articles shall come into force
from the date of promulgation.
5. Amended Articles 19-1 and 72, promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-10700065671 dated June 20, 2018.
6. Added Article 10-1, promulgated per Presidential Decree No. Hua-Tzung-(I)-Jing-10800068291 dated July 3, 2019. Added Article 10-1 shall be effective from January 1, 2019 to December 31, 2022.
7. Amended Articles 9-1, 12-1, 12-2, 19-1, 23-1, 39 and 72, added Article 23-3, and deleted Article 40, promulgated per Presidential Decree No. Hua-Tzung-(I)-Jing-10800073771, dated July 24, 2019. Articles 10 and 23-2 shall be effective from November 24, 2017
to December 31, 2029; Article 23-1 shall be effective from January 1, 2017 to December 31, 2029; Articles 12-1, 12-2 and 19-1 shall be effective from January 1, 2020 to December 31, 2029, and Article 23-3 shall be effective from the date of promulgation to
December 31, 2029, while the other amended or added articles shall come into force from the date of promulgation.
8. Amended Article 10-1, promulgated per Presidential Decree No. Hua-Tzung-(I)-Jing-11100014961 dated February 18, 2022.
Content: Chapter One - General Provisions

Article 1
This Statute is enacted for the furtherance of industrial innovation, improvement of the industrial 
environment, and enhancement of industrial competitiveness.
The term “industries” as used in this Statute shall refer to agricultural, industrial, and service 
businesses.

Article 2
The terms used in this Statute are defined as follows:
1. Company: A company incorporated in accordance with the provisions of the Company Act.
2. Limited partnership: A juridical person organized and registered pursuant to the Limited 
Partnership Act.
3. Enterprise: A sole proprietorship, partnership, limited partnership, company, or farmers’ 
organization that has been registered in accordance with the law.
4. Intangible assets: Assets that do not have physical form but have clearly discernible content, have 
economic value, and can be directly controlled and disposed of without interference from any other 
party.

Article 3
The term “competent authority” as used in this Statute refers to the Ministry of Economic Affairs at 
the central government level, the special municipality government at the special municipality level, 
and the county (city) government at the county (city) level.

Chapter Two - Basic Guidelines

Article 4
Within one year after the promulgation of this Statute, the Executive Yuan shall submit a 
Framework for Industrial Development.
Each central authority in charge of relevant enterprises shall formulate its Industrial Development 
Direction and Industrial Development Plan, which shall be submitted to the Executive Yuan for 
approval, and shall be reviewed on a regular basis.
Each central authority in charge of relevant enterprises shall be responsible for promoting the 
development of the industries subject to its jurisdiction.

Article 5
The special municipality and county (city) government may formulate local industrial development 
strategies. When formulating such strategies, it shall consult with each central authority in charge of 
relevant enterprises.
The central authorities in charge of relevant enterprises may provide incentives or grants for the 
special municipality and county (city) government, to promote local industrial development.

Article 6
(deleted)

Article 7
The central authorities in charge of relevant enterprises shall provide guidance or grants to 
industries that are in difficulty, industries that are on the verge of being in difficulty, traditional 
industries, and small- and medium-sized enterprises, to help them raise their productivity and the 
quality of their products; and to help them establish industry-specific country-of-origin marks to 
certify their products as made in Taiwan.

Article 8
The Executive Yuan shall undertake comprehensive industry surveys, assessment and analysis with 
respect to the impact of the domestic and international economic circumstances on the 
developments and innovations of domestic industries, and shall put forth industry and innovation 
support plans, and review such plans periodically.
The industry and innovation support plans as referred to in the preceding Paragraph shall include 
special guiding plans for supporting industries that are in difficulty, industries that are on the verge 
of being in difficulty, traditional industries, and small- and medium-sized enterprises.

Chapter Three - Grants or Guidance for Innovation Activities

Article 9
The central authorities in charge of relevant enterprises may provide grants, incentives or guidance 
to promote the following matters:
1. Promotion of industrial innovation or R&D.
2. Provision of guidance relating to industrial technology and industrial upgrading.
3. Encouraging enterprises to establish innovation or R&D centers.
4. Assisting in the establishment of innovation or R&D institutions.
5. Promoting collaboration between industries, academic institutions, and research institutions.
6. Encouraging enterprises to participate in workforce cultivation in schools.
7. Ensuring that there is an adequate supply of industrial human resources.
8. Helping local industries innovate.
9. Encouraging enterprises to use big data and open government data to develop and innovate 
commercial applications or service models.
10. Other matters relating to the promotion of industrial innovation or R&D.
The regulations governing the recipients of the grants, incentives or guidance as referred to in the 
preceding Paragraph, the eligibility criteria, the review standards, the application procedures, the 
approving authority, and other related matters shall be prescribed by the central authorities in charge 
of relevant enterprises.

Article 9-1
To promote state-owned enterprises’ innovation or research and development (R&D), state-owned 
enterprises are required to have an R&D budget accounting for a certain percentage of its total 
expenditure. If the R&D budget of a state-owned enterprise falls short of such a percentage for two 
consecutive years, the central competent authority shall consult the authority in charge of the 
state-owned enterprise about setting up a review and adjustment mechanism for such state-owned 
enterprise.
The percentage of the R&D budget in the total expenditure under the preceding paragraph shall be 
set by the central competent authority, taking into account the characteristics and scales of the 
state-owned enterprises after consulting the authority in charge of each such state-owned enterprise.
Unless otherwise provided in the treaties or agreements to which the ROC is a party, a state-owned 
enterprise may apply a limited tendering procedure to a procurement project for cooperation or 
commissioned study for innovation or R&D with a value reaching the threshold for public 
announcement, without being subject to the restrictions under Article 19 or Paragraph 1 of Article 
22 of the Government Procurement Act.
The ownership or the right to license others regarding the R&D results generated from the 
cooperation or commissioned study for innovation or R&D projects conducted by state-owned 
enterprises under the preceding paragraph may be conferred, in whole or in part, on the entities 
doing such innovation or R&D, without being subject to the restrictions under the National Property 
Act.
The R&D results that have been conferred on a public school, public institution (organization) or 
public enterprise in accordance with the preceding Paragraph and their safekeeping, use, profits, 
utilization and disposal shall not be subject to the restrictions under Articles 11, 13, 14, 20, 25, 28, 
29, 33, 35, 36, 56, 57, 58, 60, or 64 of the National Property Act.
The ownership and utilization of the R&D results and the income generated therefrom as referred to 
in Paragraph 1 and Paragraph 2 of this Article shall follow the principles of fairness and 
effectiveness, taking into account the proportion and contribution of capital and service, the nature 
of the R&D results, potential of application, social benefits, national security, and impacts on the 
market. Regulations for the objectives, prerequisites, durations, scopes, proportions (in whole or in 
part), registration, administration, allocation of revenue, recusal, and disclosure of relevant 
information shall be prescribed by the central competent authority in consultation with the authority 
in charge of each of such state-owned enterprise.
The preceding six paragraphs shall not apply to a state-owned enterprise under either of the 
following circumstances:
1. The enterprise is not a corporate entity.
2. The enterprise is established to protect depositors’ rights and interests, maintain credit order, and 
promote the sound development of financial business.

Article 10
To promote industrial innovation, where a company or limited partnership has not violated any 
environmental protection, labor safety and health, or food safety and sanitation laws in the past three 
years, the company or limited partnership may select one of the following incentives for crediting 
the funds invested by it in research and development against the profit-seeking enterprise income 
tax payable by it. Once the company or limited partnership selects an incentive, it cannot change its 
selection, and the creditable amount shall not exceed 30 percent of the profit-seeking enterprise 
income tax payable by it in the then-current year.
1. Up to fifteen percent of the R&D expenses may be credited against the profit-seeking enterprise 
income tax payable by it in the then-current year.
2. Up to ten percent of the R&D expenses may be credited against the profit-seeking enterprise 
income tax payable by it in each of the three years following the then-current year.
The regulations governing the scope of application of the investment credit under the preceding 
Paragraph, the application deadline, the application procedure, the approval authority, the 
implementation period, and the tax credit rate shall be prescribed by the central competent authority 
in consultation with the Ministry of Finance.

Article 10-1
For the purpose of optimizing industrial structure to achieve smart upgrade transformation and to 
encourage application of diversified innovations, where a company or limited partnership has not 
committed severe violation of any environmental protection, labor, or food safety or sanitation laws 
in the past three years, and has invested in the hardware, software, technology or technical services 
in connection with brand-new smart machines or introduction of 5th-generation mobile networks for 
its own use between January 1, 2019 and December 31, 2024 or in connection with cyber security 
products or services for its own use between January 1, 2022 and December 31, 2024, with 
expenditure of more than NT$1 million and under NT$1 billion in the same taxable year, may select 
one of the following credits against the payable profit-seeking enterprise income tax; once selected, 
it cannot be changed. Each annual investment creditable amount shall not exceed 30 percent of the 
payable profit-seeking enterprise income tax in the then-current year:
1. Up to five percent of the expenditure may be credited against the payable profit-seeking 
enterprise income tax in the then current year.
2. Up to three percent of the expenditure may be credited against the payable profit-seeking 
Enterprise’s income tax in each of the three years from the then-current year.
Where a company or limited partnership is concurrently applicable in the same year for the 
investment credit under the preceding paragraph and other types of investment credit, the total 
amount creditable in the then-current year shall not exceed 50 percent of the payable profit-seeking 
enterprise income tax of the then-current year, unless other laws govern the then-current year is the 
final creditable year and there is no limitation on the creditable amount.
The term smart machines under Paragraph 1 refers to smart technology elements that utilize big data, 
artificial intelligence, Internet of things, robots, lean management, digital management, clicks and 
mortar, additive manufacturing or sensors, and having smart functions that produce information 
visualization, fault prediction, accuracy compensation, automatic parameter setting, automatic 
control, automatic scheduling, application service software, flexible production, or mixed-model 
production.
The term 5th-generation mobile networks under Paragraph 1 refers to 5G-related technological 
elements, equipment (including equipment needed for testing) or vertical application systems that 
utilize MF/HF communications meeting the specifications of 3rd Generation Partnership Project 
Release 15, large numbers of antenna arrays, network slicing, network virtualization, 
software-defined networking and edge computing to increase production efficacy or to provide 
smart servicess.
The term cyber security products or services under Paragraph 1 refers to the hardware, software, 
technology or technical services used in connection with the safeguard of terminal and mobile 
devices, maintenance of network security and/or the maintenance of data and cloud security to 
prevent information and communication system or information from unauthorized access, use, 
control, disclosure, damage, alteration, destruction or other infringement to assure its confidentiality, 
integrity and availability.
A company or limited partnership applying for investment credit applicable under Paragraph 1 shall 
submit an investment scheme capable of generating certain effects to the central authority in charge 
of relevant enterprises for approval on a case-by-case basis, and may apply only once in each 
taxable year.
The scope of applicability, investment schemes capable of generating certain effects, application 
deadline, application procedure, authority granting approval, tax credit rate, calculation of the total 
creditable amount in the then-current year, and other related matters for investment credit in smart 
machines, 5th-generation networks or cyber security products or services under the preceding six 
paragraphs shall be prescribed by the central competent authority in consultation with the Ministry 
of Finance. 

Article 11
(deleted)

Chapter Four - Circulation and Utilization of Intangible Assets

Article 12
To promote the circulation and utilization of the results of innovation or R&D, when sponsoring, 
commissioning certain entities to do so, or funding innovation or R&D projects, the central 
authorities in charge of relevant enterprises and the state-owned enterprises subordinate to such 
authorities shall require the entities conducting such innovation or R&D to devise the strategy for 
applying such innovation or R&D results for business operation, substantively analyze the 
intellectual property rights, ensure the quality of the intellectual property, give comprehensive 
protection to the results, and evaluate circulation and utilization methods.
The circulation and utilization of the intellectual property under the preceding paragraph shall be 
valuated by a legally qualified intangible asset valuation associate or by an institution or person 
registered in accordance with Article 13, and the evaluation material shall be recorded in the 
information service system designated by the central competent authority.
The scope of application, promotion, administration measures, and other matters regarding the 
innovation and R&D under Paragraph 1 of this Article shall be prescribed by the central competent 
authority.

Article 12-1
To promote the circulation and application of the results of innovation or R&D, where a domestic 
individual, company or limited partnership receives revenue from assignment or licensing of 
his/her/its intellectual property rights in his/her/its own R&D results, up to 200 percent of his/her/its 
R&D expenditures in the then-current year may be deducted from the amount of his/her/its taxable 
income up to the amount of the above revenue in that year, and, in the case of a company or limited 
partnership, the company or limited partnership may choose between the tax credit against its R&D 
expenditures under this Paragraph and the investment tax credit under Article 10.
Where a domestic individual, company or limited partnership assigns or grants a license to use 
his/her/its intellectual property rights in his/her/its own R&D results to a company, the individual, 
company or limited partnership may opt to exclude the new shares acquired as the consideration 
from his/her/its taxable income in the year such shares are acquired. Once a choice of option is 
made, it cannot be reversed. However, after the individual, company or limited partnership has 
opted to exclude such new shares from his/her/its taxable income in the year such shares are 
acquired, if the shares are transferred or are delivered by book-entry transfer to an account with a 
securities depository enterprise, the entire transfer price, the market price of the shares at the time of 
gift or distribution as estate, or the market price of the shares on the date of book-entry transfer less 
the expenses or costs incurred for acquisition of the shares but not yet recognized, shall be included 
in the revenue for the year of transfer or book-entry transfer and be declared for assessment of 
income tax.
Where a domestic individual has opted to exclude the new shares acquired as the consideration from 
his/her taxable income in the year such shares are acquired in accordance with the preceding 
paragraph, and has held such shares and provided services regarding application of the intellectual 
property rights under the preceding paragraph to the company issuing those shares accumulatively 
for two years, if the shares are transferred or are delivered by book-entry transfer to an account with 
a securities depository enterprise, and the entire transfer price, the market price of the shares at the 
time of gift or distribution as estate, or the market price of the shares on the date of book-entry 
transfer is higher than the acquisition price of the shares, the acquisition price of the shares shall be 
included in the revenue for the year of transfer or book-entry transfer and be declared for 
assessment of income tax. Where a domestic individual has not declared the price of the shares for 
assessment of income tax or has declared the price for assessment of income tax but cannot provide 
documentary proof of the acquisition price of the shares, and the information is not available from 
the taxation authority, the above provisions shall not apply.
The transfer under the preceding two paragraphs refers to purchase, sale, gift, distribution as estate, 
cancellation of shares as a result of capital reduction, corporate liquidation, or change in ownership 
due to other causes.
Where an individual's income is calculated in accordance with Paragraph 1, 2 or 3 hereof but is not 
declared or proved by any documents, the sum of his/her costs and necessary expenses shall be 
calculated at 30 percent of his/her revenue, the transfer price, the market price of the shares at the 
time of the gift or distribution as estate, or the market price of the shares on the date of book-entry 
transfer, and be deducted from the individual's taxable income.
The incentives under Paragraph 2 are available only if the company issuing shares submits the 
required documents and information in the prescribed format to the central authority in charge of 
relevant enterprises for certification in the year it accepts contributions in exchange for its shares. A 
copy of the results of the certification shall also be delivered to the taxation authority at the place 
where the company is located.
Where a domestic individual intends to apply for the tax benefit under Paragraph 3, the company 
issuing those shares shall submit documents prepared in the prescribed format to explain the 
services regarding application of the intellectual property rights provided by the individual to the 
company to the central authority in charge of the relevant enterprises for recognition when it applies 
for the certification under the preceding paragraph. In the year when the individual has held the 
shares and provided services regarding application of the intellectual property rights to the company 
for two years, the company shall submit documents proving the individual’s shareholding and 
services mentioned above to the central authority in charge of the relevant enterprises for 
recordation. A copy of the proof shall be delivered to the taxation authority at the place where the 
company is located.
The regulations governing the scope of application of the R&D expenditures deductible from the 
taxable income under Paragraph 1, the application deadline, the application procedure, the 
approving authority, and other related matters shall be prescribed by the central competent authority 
in consultation with the Ministry of Finance.
The scope of the intellectual property rights in the R&D results under Paragraphs 1 and 2, and the 
formats, the application deadlines and procedure, and the formats of the required documents under 
Paragraphs 6 and 7 shall be prescribed by the central competent authority.
The regulations governing the procedure for deferred payment and assessment on shares acquired 
with the transferred or licensed intellectual property rights in R&D results under Paragraphs 2 and 3, 
the documents to be submitted, and other related matters shall be prescribed by the Ministry of 
Finance.

Article 12-2
Where a domestic academic or research institution assigns the intellectual property rights resulting 
from its R&D achievements and conferred on it to a company or licenses the company to use such 
rights in accordance with Paragraph 1, Article 6 of the Fundamental Science and Technology Act, 
and acquires shares in the company in return, and distributes such shares to the domestic creator of 
such intellectual property rights in accordance with Paragraph 3, Article 6 of the Fundamental 
Science and Technology Act, such domestic creator may opt to exclude the new shares so acquired 
from his/her income taxable in the year such shares are acquired. Once such option is chosen, it 
cannot be reversed. However, after the creator has opted to exclude such new shares from his/her 
income taxable in the year such shares are acquired, if the shares are transferred or are delivered by 
book-entry transfer to an account with a securities depository enterprise, the entire transfer price, the 
market price of the shares at the time of gift or distribution as estate, or the market price of the 
shares on the date of book-entry transfer shall be included in the creator’s salary for the year of 
transfer or book-entry transfer and be declared for assessment of income tax in accordance with the 
Income Tax Act.
Where a domestic creator has opted to exclude the acquired new shares from his/her taxable income 
in the year such shares are acquired in accordance with the preceding paragraph, and has held such 
shares and worked and carried out research and development at an industry or an academic or 
research institution within the territory of the R.O.C. accumulatively for two years, if the shares are 
transferred or are delivered by book-entry transfer to an account with a securities depository 
enterprise, and the entire transfer price, the market price of the shares at the time of gift or 
distribution as estate, or the market price of the shares on the date of book-entry transfer is higher 
than the market price of the shares at the time they are acquired by the creator, the market price of 
the shares at the time they are acquired by the creator shall be included in the creator’s revenue for 
the year of transfer or book-entry transfer, and be declared for assessment of income tax. Where an 
R.O.C. creator has not declared the price of the shares for assessment of income tax or has declared 
the price for assessment of income tax but cannot provide documentation proof of the market price 
of the shares at the time they are acquired by the creator, and the information is not available from 
the taxation authority, the above provisions shall not apply.
The assignment under the preceding two paragraphs refers to purchase, sale, gift, distribution as 
estate, cancellation of shares as a result of capital reduction, corporate liquidation, or change in 
ownership due to other causes.
Where a domestic academic or research institution distributes shares to a domestic creator in 
accordance with Paragraph 1 of this Article and desires to be qualified for the incentive under that 
paragraph, it shall submit duly formatted documents to the competent authority specified in 
Paragraph 3, Article 6 of the Fundamental Science and Technology Act for approval. A copy of the 
decision of the competent authority shall be served on the company issuing the shares and the 
taxation authority at the place where the company is located.
The scope of the intellectual property rights derived from an academic or research institution’s own 
R&D achievements in accordance with Paragraph 1 and conferred on the institution in accordance 
with Paragraph 1, Article 6 of the Fundamental Science and Technology Act, the rules for 
recognition of the shares distributed to domestic creators in accordance with Paragraph 3, Article 6 
of the Fundamental Science and Technology Act, the rules for recognition of working and carrying 
out research and development at an industry or an academic or research institution within the 
territory of the R.O.C. under Paragraph 2, the formats of the documents, the application procedure 
and the required documents under the preceding paragraph, and other related matters shall be 
prescribed by the Ministry of Science and Technology.
The procedure for declaring deferral of the income tax payable for the shares acquired by the 
domestic creators under Paragraphs 1 and 2, the documents to be submitted, and other related 
matters shall be prescribed by the Ministry of Finance.

Article 13
To assist enterprises in presenting the value of intangible assets derived from industrial innovations, 
the central competent authorities shall invite the relevant agencies to attend to the following matters:
1. Formulation and implementation of the standards for valuation services.
2. Establishment and management of valuation databases.
3. Cultivation and training of valuation associates, and setting up the mechanisms for registering 
and managing valuation personnel and institutions.
4. Promotion of investment in or financing with intangible assets, securitization transactions, 
insurance, completion guarantee, and other matters.
The central authority in charge of relevant industries may provide grants to certified or registered 
intangible asset valuation associates and institutions for their valuation activities in accordance with 
the law. The valuation associates and institutions receiving the grants shall register the valuation 
data from their valuation projects subject to the grants on the information service systems 
designated by the central competent authority.
The criteria for doing the valuation under Subparagraph 1, Paragraph 1, the application of such 
criteria, the measures for promoting the creation and management of the databases under 
Subparagraph 2, Paragraph 1, and other related matters shall be prescribed by the central competent 
authority in consultation with the financial competent authorities and other relevant agencies.
The scope and terms of registration of valuation associates and institutions under Subparagraph 3, 
Paragraph 1, the method of applying for such registration, the matters to be reviewed, such 
associates’ and institutions’ obligation to cooperate, the management measures, and rules for 
revoking or invalidating registration, and other relevant matters shall be prescribed by the central 
competent authority in consultation with the relevant agencies.
The matters to be promoted under Subparagraph 4, Paragraph 1 shall be prescribed by the central 
competent authority in consultation with the financial competent authorities and other relevant 
agencies.

Article 14
To encourage enterprises to make use of intellectual property to create operational benefits, the 
central authorities in charge of relevant enterprises may assist enterprises in the establishment of 
systems for the protection and management of intellectual property.

Article 15
To improve the efficiency of the circulation and utilization of intellectual property, the central 
authorities in charge of relevant enterprises may establish service mechanisms to provide the 
following services:
1. Establishment of information service systems to provide information relating to the circulation of 
intellectual property.
2. Provision of information relating to value addition and combination of intellectual property.
3. Implementation of activities relating to the promotion and marketing of intellectual property.
4. Assistance in the development of the intellectual property services industry.
5. Providing guidance to industries on financing through the use of intellectual property.
6. Other applications of intellectual property.

Article 16
To encourage industry to develop brands, the central authorities in charge of relevant enterprises 
may provide incentives, grants, or guidance for enterprises that take part in international exhibitions 
and trade fairs, explore sales opportunities, or undertake brand development with the aim of 
developing international brands and raising their international image.
The regulations governing the recipients of the incentives, grants, or guidance as referred to in the 
preceding Paragraph, the eligibility criteria, the review standards, the application procedures, the 
approving authority, and other relevant matters shall be prescribed by the central authorities in 
charge of relevant enterprises.

Chapter Five - Industrial Human Resource Development

Article 17
To strengthen the availability of the human resources required for industrial development, the 
Executive Yuan shall designate an agency to establish mechanisms to coordinate the development of 
industrial human resources and promote the following:
1. Coordination with the central authorities in charge of relevant enterprises to conduct surveys and 
projections on the supply and demand of human resources for key industries.
2. Integration of supply and demand data relating to industrial human resources, and formulation of 
industrial human resource development strategies.
3. Coordination of matters relating to the promotion of industrial human resources development.
4. Promotion of planning for collaboration between industries, academic institutions, research 
institutions, and vocational training institutions.

Article 18
Unless otherwise provided for by law, the central authorities in charge of relevant enterprises may 
conduct the following matters in line with the needs of industrial development:
1. Formulating occupational competency standards for industrial human resources.
2. Promoting capability assessment of industrial human resources.
3. Promoting enterprises’ adoption of, private participation in, and international mutual recognition 
of the matters under the preceding two subparagraphs.
The regulations governing the mechanisms for capability assessment of industrial human resources, 
the quality standard, the issuance, extension, replacement, reissuance, revocation and invalidation of 
professional capability assessment certificates, and recognition and revocation of private capability 
assessment as referred to in Subparagraphs 2 and 3 of the preceding paragraph, and other relevant 
matters shall be prescribed by the central authorities in charge of relevant enterprises.

Article 19
To strengthen the resources for the cultivation of industrial human resources, the central authorities 
in charge of relevant enterprises may provide guidance to support the development of industrial 
human resources cultivation institutions or organizations, and to introduce international human 
resources cultivation institutions into Taiwan.

Article 19-1
Where a company employee acquires stock-based employee compensation, the employee may opt 
to exclude up to an annual total of NT$5 million worth of the acquired shares from his/her annual 
taxable income as calculated at the market price prevailing in the year such shares are acquired or 
the year of the day the acquired shares become disposable. Once an option is chosen, it cannot be 
reversed. However, where an employee has opted to exclude the acquired shares from the annual 
taxable income in the year such shares are acquired or the year of the day such shares become 
disposable, when the shares are transferred or book-entry transferred to an account of a securities 
depository enterprise, the entire transfer price, the market price of the shares at the time of gift or 
distribution as estate, or the market price of the shares on the date of book-entry transfer shall be 
deemed the employee’s revenue for the year of transfer or book-entry transfer, and be declared for 
assessment of income tax in accordance with the Income Tax Act.
Where a company employee has opted to exclude a certain worth of the acquired shares from 
his/her annual taxable income in the year such shares are acquired or the year of the day the 
acquired shares become disposable in accordance with the preceding paragraph, and has held the 
shares and continued to work at the company accumulatively for two years from the day the shares 
are acquired, if the shares are transferred or book-entry transferred to an account of a securities 
depository enterprise, and the entire transfer price, the market price of the shares at the time of gift 
or distribution as estate, or the market price of the shares on the date of book-entry transfer is higher 
than the market price on the day the shares are acquired or become disposable, the market price on 
the day the shares are acquired or become disposable shall be included in the revenue for the year of 
transfer or book-entry transfer, and be declared for assessment of income tax in accordance with the 
Income Tax Act. However, where a company employee has not declared the price of the shares for 
assessment of income tax or has declared the price for assessment of income tax but cannot provide 
documentary proof of the market price on the day the shares are acquired or become disposable, and 
the information about the market price on the day the shares become disposable is not available 
from the taxation authority, the above provisions shall not apply.
Where an employee of the preceding paragraph has continued to work at the company for two or 
more years accumulatively, his years of service may be combined with the years of service from any 
of the following companies:
1. A company over 50 percent of whose total issued voting shares is held or over 50 percent of 
whose total capital is contributed by the company granting the stock-based employee compensation.
2. A company that holds over 50 percent of the total issued voting shares or contributes over 50 
percent of the total capital of the company granting the stock-based employee compensation.
A company employee as referred to in the preceding three paragraphs shall be a person described in 
one of the following subparagraphs and not be a director or a supervisor of the company granting 
the stock-based employee compensation:
1. An employee of the company that gives stock-based compensation to its employees.
2. An employee of a company over 50 percent of whose total issued voting shares or total capital is 
held or contributed by the company granting the stock-based employee compensation in accordance 
with the Company Act or the Securities and Exchange Act.
3. An employee of a company that holds over 50 percent of the total issued voting shares or 
contributes over 50 percent of the total capital of the company granting the stock-based employee 
compensation in accordance with the Company Act or the Securities and Exchange Act.
The stock-based employee compensation under Paragraph 1 refers to shares issued as employee 
compensation, employee stock options at cash capital increase, treasury shares redeemed for 
issuance to employees, share subscription warrants issued to employees, and new restricted shares 
issued to employees.
Transfer under Paragraphs 1 and 2 refers to change in the ownership of shares as a result of sale, gift, 
distribution as estate, cancellation of shares for capital reduction, company liquidation or other 
causes.
To be eligible for the incentive under Paragraph 1 to Paragraph 3, the company granting the 
stock-based employee compensation shall, in the year its employees acquire stock-based employee 
compensation or the year of the day the acquired shares become disposable, file employees' choices 
of tax deferral and other related matters in the prescribed formats with the central authority in 
charge of relevant enterprises for recordation, with copies of the submissions delivered to the 
taxation authority at the place where the company is located.
The formats for filing the above matters shall be prescribed by the central competent authority.
Where a company employee is subject to Paragraph 2 or 3, the company granting the stock-based 
employee compensation to the employee shall, in the year when the employee has held the shares 
and continued to work at the company for two years continuously, submit documents proving that 
the employee has held the shares and continued to work at the company continuously for two or 
more years accumulatively to the central authority in charge of the relevant enterprises for 
recordation. A copy of the proof shall be delivered to the taxation authority at the place where the 
company is located.
The regulations governing the procedure for declaring deferred income on the stock-based 
employee compensation under Paragraphs 1 through 3, setting of the date of acquisition of the stock 
and the day the stock becomes disposable, calculation of the annual total of NT$5 million worth of 
the acquired shares, determination of the market price, documents required for submission, and 
other related matters shall be prescribed by the Ministry of Finance.

Chapter Six - Promoting Investment in Industry

Article 20
To promote investment, the central competent authority shall be responsible for the following 
matters:
1. Establishment of an inter-ministerial coordination mechanism.
2. Provision of consultation and assistance with respect to investment procedures and relevant 
matters.
3. Promotion and coordination of major investment plans.
4. Consultation and assistance with regard to other matters in furtherance of investment.

Article 21
To encourage industries to use international resources, the central authorities in charge of relevant 
enterprises may provide appropriate assistance and guidance with respect to overseas investment or 
international technology collaboration.
The regulations governing the recipients of assistance and guidance with respect to the overseas 
investment and technology collaboration as referred to in the preceding paragraph, the eligibility 
criteria, the review standards, the application procedures, the approving authority, and other relevant 
matters shall be prescribed by the central authorities in charge of relevant enterprises.

Article 22
Companies wanting to undertake overseas investment shall apply for approval from the central 
competent authority before making the investment, provided that overseas investments of NT$1.5 
billion or less may be reported to the central competent authority after the investment has been 
made.
The regulations governing the methods used to make overseas investment as referred to in the 
preceding paragraph, the types of investment, the application deadline, the application procedures, 
and other relevant matters shall be prescribed by the central competent authority.

Article 23
To attract funds back for investment in Taiwan, the central competent authority may introduce 
measures to help investors obtain land for industrial use as an incentive for such investments.

Article 23-1
To help innovative startups develop, a venture capital enterprise as referred to in Article 32, 
incorporated between January 1, 2017 and December 31, 2029 in accordance with the Limited 
Partnership Act is eligible for the tax benefit under Paragraph 4.
1. A venture capital enterprise contributing capital annually, meeting the requirements of one of the 
following subparagraphs, and from the second year of its establishment, using each year’s funds 
equal to at least 50% of the aggregate capital contributions substantially received in that year within 
the territory of the R.O.C. or investing such funds in foreign companies conducting their substantial 
operational activities within the territory of the R.O.C. in accordance with the R.O.C. government’s 
policy as approved by the central competent authority on a yearly basis:
(1) In the year of establishment and the second year: The total capital to be contributed in 
accordance with the limited partnership agreement reaches NT$300 million as of the last day of the 
respective year.
(2) In the third year of establishment: The aggregate capital contribution substantially received by 
the venture capital enterprise reaches NT$100 million as of the last day of the year.
(3) In the fourth year of establishment: The aggregate capital contribution substantially received by 
the venture capital enterprise reaches NT$200 million as of the last day of the year, and the 
accumulated sum invested by it in innovative startups accounts for 30 percent or more of the total 
capital contribution received by the enterprise in that year or reaches NT$300 million.
(4) In the fifth year of establishment: The aggregate capital contribution substantially received by 
the venture capital enterprise reaches NT$300 million as of the last day of the year, and the 
accumulated sum invested by it in innovative startups accounts for 30 percent or more of the total 
capital contribution received by the enterprise in that year or reaches NT$300 million.
2. A venture capital enterprise receiving an aggregate capital contribution of NT$300 million or 
more in the year of incorporation, meeting the requirements of one of the following subparagraphs, 
and from the second year of establishment, using each year’s funds equal to at least 50% of the 
pre-decided aggregate capital contribution for that year within the territory of the R.O.C. or 
investing such funds in foreign companies conducting their substantial operational activities within 
the territory of the R.O.C. in accordance with the government’s policy as approved by the central 
competent authority on a yearly basis:
(1) In the year of establishment and the second year: The aggregate capital contribution received 
reaches NT$300 million as of the last day of the year.
(2) In the third year of establishment: The pre-decided aggregate capital contribution amounts to 
NT$100 million as of the last day of the year.
(3) In the fourth year of establishment: The pre-decided aggregate capital contribution amounts to 
NT$200 million as of the last day of the year, and the accumulated investment in innovative startups 
amounts to 30 percent of the enterprise’s pre-decided aggregate capital contribution for that year or 
NT$300 million.
(4) In the fifth year of establishment: The pre-decided aggregate capital contribution amounts to 
NT$300 million as of the last day of the year, and the accumulated investment in innovative startups 
amounts to 30 percent of the enterprise’s pre-decided aggregate capital contribution for that year or 
NT$300 million.
The pre-decided aggregate capital contribution as referred to in Subparagraph (2) of the preceding 
paragraph means the aggregate capital contribution for the preceding year decided by a venture 
capital enterprise when applying for the central competent authority’s approval on a yearly basis. 
The pre-decided aggregate capital contribution shall not be less than the amount of the enterprise’s 
actual investment accumulated from the year of establishment to the last day of the preceding year, 
and shall reach the aggregate capital contribution needed for the completion of fundraising before 
the expiration of the period in which the enterprise is eligible for the tax benefit under Paragraph 4.
Where an enterprise having been eligible for the tax benefit under Paragraph 4 subsequently goes to 
liquidation, the enterprise may be exempt from the restrictions under Paragraph 1 and remains 
eligible for the tax benefit under Paragraph 4 during liquidation.
Within ten years from the fiscal year of establishment, an enterprise conforming to Paragraph 1 may 
calculate its each year’s total income in accordance with Article 24 of the Income Tax Act, and 
calculate each partner’s profit-seeking income according to the earning distribution proportion 
under Paragraph 2, Article 28 of the Limited Partnership Act, and the partner may be taxed or 
exempt from income tax on such income in accordance with the Income Tax Act.
However, an individual or a partner in a profit-seeking enterprise whose head office is not within the 
territory of the R.O.C. is exempt from income tax regarding gains derived from securities 
transactions according to Article 4-1 of the Income Tax Act. When the earnings are distributed to a 
partner by an enterprise subject to this Paragraph, such earnings shall not be counted as the partner’s 
income.
Under special circumstances, an enterprise eligible for the tax benefit under the preceding paragraph 
may, three months before the expiration of the time limit, file a special request for the central 
competent authority’s approval of a one-time extension of the time limit for exemption under that 
paragraph for not more than five years.
An enterprise eligible for the tax benefit under Paragraph 4 shall, during the period of eligibility 
under Paragraph 4, file annual income tax returns, and current final reports on total business income 
or income earned from liquidation in the formats prescribed by the Ministry of Finance within the 
time limits set forth in Paragraph 1 of Article 71, and Paragraphs 1 and 2 of Article 75 of the Income 
Tax Act, and not be required to calculate or pay the payable tax; it shall not be subject to the proviso 
of Paragraph 1, Article 39 of the Income Tax Act regarding deduction of losses, Paragraph 1 of 
Article 42 of the same Act regarding exclusion of earnings from reinvestment for the purpose of 
calculating taxable income, or provisions for any other tax incentives in this Statute or other laws; in 
addition, it shall not be required to pay additional profit-seeking income tax on undistributed surplus 
earnings under Article 66-9 of the same Act, or declare or pay the additional income tax on retained 
earnings under Paragraph 1 of Article 102-2 of the same Act.
An enterprise eligible for the tax benefit under Paragraph 4 may calculate the withholding tax 
distributable to each partner in a year out of the amount of tax withheld from the enterprise’s income 
in that year according to the earning distribution proportion under Paragraph 2, Article 28 of the 
Limited Partnership Act. The withholding tax already paid may be offset against the income tax 
payable by the partner. An enterprise eligible for the tax benefit under Paragraph 4 shall, before the 
deadline for filing the income tax return, or the current final report on total business income or 
income earned from settlement or liquidation for each year, issue to each partner a certificate in the 
format prescribed by the Ministry of Finance indicating the partner’s income calculated in 
accordance with Paragraph 4 and the above-mentioned withholding tax distributable to the partner, 
and attribute such income to the partner’s income for the year in which the settlement date of the 
enterprise’s annual accounts, the day for filing its final income tax return for the current period, or 
the completion date on which its liquidation process falls.
Where a partner receiving income under Paragraph 4 is an individual not residing in the R.O.C. or a 
profit-seeking enterprise having its head office outside the territory of the R.O.C., the responsible 
person of the enterprise subject to Paragraph 4 shall be considered the income tax withholder. The 
income tax shall be withheld from the taxpayer’s income according to the applicable withholding 
tax rate before the deadline for filing the income tax return, or the current final report on total 
business income or income earned from liquidation for the current year and shall be all paid to the 
national treasury within 10 days after the deadline passes. Withholding certificates proving such tax 
payment shall be issued to the partners after the certificates have been filed with and verified by the 
taxation authority.
Where tax has been withheld from the partner’s income in accordance with the preceding paragraph, 
the withheld amount shall be deducted from the tax amount payable by the partner.
To be eligible for the tax benefit under Paragraph 4, an enterprise shall opt for the eligibility for the 
tax benefit under Subparagraph 1 or 2 of Paragraph 1 before the end of February in the next year 
after its establishment. Once an option is chosen, it cannot be reversed. During the period of 
eligibility, if the central competent authority finds that the enterprise does not comply with 
Paragraph 1, the enterprise shall no longer be eligible for the tax benefit under Paragraph 4 and shall 
pay tax in accordance with the Income Tax Act and the Basic Income Tax Act from the year it loses 
eligibility.
An innovative startup under Paragraph 1 refers to a company incorporated in accordance with the 
Company Act or a foreign company conducting its substantial operational activities within the 
territory of the R.O.C., and having been incorporated for less than five years when an enterprise 
eligible for the tax benefit under Paragraph 4 acquired new shares issued by the company.
A foreign company conducting its substantial operational activities within the territory of the R.O.C. 
under Paragraph 1 or the preceding paragraph refers to a company incorporated in accordance with 
the law of a foreign country, having a subsidiary or branch office in the R.O.C, and recognized by 
the central competent authority as meeting the following requirements:
1. The person who makes significant decisions in business management, financial management, and 
personnel management for the company is an individual residing in the R.O.C. or a profit-seeking 
enterprise having its head office within the territory of the R.O.C., or the place where such 
significant decisions are made is in the R.O.C.
2. The financial statements, records of accounting books, minutes of meetings of the board of 
directors or minutes of meetings of the shareholders are prepared or stored within the territory of the 
R.O.C.
3. Major business activities are carried out in the R.O.C.
The regulations for calculating the actual received capital contributions and the pre-decided 
aggregate capital contribution under Paragraph 1, the funds used within the territory of the R.O.C. 
or invested in foreign companies conducting their substantial operational activities within the 
territory of the R.O.C., the proportion of the funds so used or invested, the extent of compliance 
with the R.O.C. government’s policy, the calculation of the percentage of the accumulated sum 
invested in innovative startups out of the actual received capital contributions received by a limited 
partnership or the pre-decided aggregate capital contribution, and the application and reviewing 
procedures under Paragraph 1; the special circumstances and the procedure for applying for 
extension of the time limit for exemption under Paragraph 5; the regulations for identifying foreign 
companies conducting substantial operational activities within the territory of the R.O.C. under the 
preceding paragraph, and required supporting documents; and other relevant matters shall be 
prescribed by the central competent authorities in consultation with the Ministry of Finance.
Regulations for calculation of the income of enterprises subject to Paragraph 4 and the procedure for 
declaring such income; the timing for including deductible income in shareholder imputation credit 
accounts under Paragraph 7; the tax-withholding procedure under Paragraph 8; and other related 
matters shall be prescribed by the Ministry of Finance. The income tax withholding rates under 
Paragraph 8 shall be set by the Ministry of Finance and submitted to the Executive Yuan for 
approval.

Article 23-2
Where an individual invests at least NT$1 million in cash in one year in domestic innovative 
startups that have been incorporated for less than two years and identified by the central authority in 
charge of relevant enterprises as high-risk innovative startups, and acquires and holds the new 
shares issued by the company for two years, up to 50 percent of the investment may be excluded 
from the individual’s consolidated income for the year in which the second anniversary of such 
shareholding falls. The aggregate amount excludable from an individual’s consolidated income each 
year in accordance with this paragraph shall not exceed NT$3 million.
The qualifications of the individuals, the scope and qualifications of the high-risk innovative 
startups, the application deadline, the application procedure, the calculation of the shareholding 
period, and the authorities giving the approval under the preceding paragraph shall be prescribed or 
designated by the central competent authorities in consultation with the Ministry of Finance.

Article 23-3
To encourage profit-seeking enterprises to use their earnings to make substantial investment or 
upgrade production technology or the quality of products or services, if a company or limited 
partnership uses a certain amount of its undistributed earnings to construct or purchase buildings, 
software or hardware equipment, or technology for use in production or operation as needed for 
operation of its business or ancillary business within three years from the year after such earnings 
are derived, such investment amounts may be deducted from the undistributed earnings in 
calculation of the current year’s undistributed earnings for assessment of additional profit-seeking 
enterprise income tax leviable on undistributed earnings from the year 2018 under Article 66-9 of 
the Income Tax Act.
When a company or limited partnership eligible for the tax benefit under the preceding paragraph 
declares its undistributed earnings in accordance with Article 102-2 of the Income Tax Act, it shall 
enter the data on the prescribed forms and submit documents proving such investment to the local 
taxation authority.
Where a company or limited partnership eligible for the tax benefit under Paragraph 1 completes the 
investment after it has paid the additional profit-seeking enterprise income tax on its undistributed 
earnings, it shall apply to the local taxation authority for recalculation of its undistributed earnings 
for that year and refund of the overpaid tax by filing the prescribed forms and submitting documents 
proving such investment in accordance with Paragraph 1.
Regulations for the amounts of undistributed earnings under Paragraph 1, the prescribed forms and 
documents proving investment under Paragraph 2, the procedure for applying for refund of overpaid 
tax, and the documents needed to be submitted under the preceding paragraph, and other related 
matters shall be prescribed by the Ministry of Finance.

Article 24
(deleted)

Article 25
To encourage companies to utilize global resources and internationalize their operations, companies 
may apply to establish within the territory of the R.O.C. an operational headquarters of a certain size 
and with significant economic benefits.
With respect to the operational headquarters of a certain size and with significant economic benefits 
as referred to in the preceding Paragraph, regulations governing the size, the scope of application, 
the application and approval procedures, and other relevant matters shall be prescribed by the 
central competent authority.

Chapter Seven - Environment for the Sustainable Development of Industries

Article 26
To encourage the sustainable development of industries, the central authorities in charge of relevant 
enterprises may provide enterprises with grants or guidance to promote the following matters:
1. Assisting enterprises in adapting to international regulations for environmental protection and 
health and safety.
2. Promoting the development and application of technology relating to greenhouse gas reduction 
and pollution prevention.
3. Encouraging enterprises to improve the efficiency of their energy and resource consumption and 
to adopt relevant technologies that may recycle/renew energy/resources and save energy and water.
4. Production of non-toxic, less-polluting products and other products that reduce the burden on the 
environment.
The regulations governing the recipients of the grants or guidance as referred to in the preceding 
Paragraph, the eligibility criteria, the review standards, the application procedures, the approving 
authority, and other relevant matters shall be prescribed by the central authorities in charge of 
relevant enterprises.

Article 27
Each central authority in charge of relevant enterprises shall encourage government agencies and 
institutions, and enterprises to procure software, and innovative and green products and services.
To enhance the procurement efficiency for supply and demand, the central competent authority may 
provide relevant assistance and services to the agencies and institutions making procurements under 
the preceding paragraph. For procurements made through joint supply contracts in accordance with 
the preceding paragraph, the common requirements may be defined by the central competent 
authority in consultation with the central authority in charge of the relevant entities as the policy 
demands.
Where the software, innovative and green products and services procured in accordance with 
Paragraph 1 must pass testing, review, accreditation and certification, the charges for such processes 
may be reduced, waived, or suspended.
A government agency/institution may specify in the tender documentation that priority shall be 
given to procurement of innovative and green products or services identified as meeting the 
requirements of Paragraph 1, provided that such priority does not violate any treaty or agreement to 
which the R.O.C. is a party.
The regulations governing the specifications and categories of, and certification procedures and 
review standards for, the software, innovative and green products and services under Paragraph 1, 
the testing and review criteria, accreditation and certification under Paragraph 3, the method of 
making priority procurement under Paragraph 4, and other relevant matters shall be prescribed by 
the central authorities in charge of relevant enterprises.

Article 28
To encourage enterprises to fulfill their social responsibility, the central authorities in charge of 
relevant enterprises shall assist enterprises to actively disclose the relevant environmental 
information regarding their production processes, products, services, and other aspects of 
sustainable development, and the enterprises with outstanding performance may be eligible to 
receive commendations or awards.

Chapter Eight - Financial Assistance

Article 29
To accelerate industrial innovation and value addition, and promote economic transformation and 
national development, the Executive Yuan shall establish a National Development Fund.

Article 30
The National Development Fund may be used for the following purposes:
1. To invest in industrial innovation, high-tech development, recyclable/renewable energy/resources, 
“green energy” industries, introduction of technology, and other important businesses or projects 
that can enhance the efficiency of industries or improve the industrial structure, in line with the 
national industrial development strategy.
2. To provide financing facilities to supported projects relating to the sustainable development of 
industries, pollution prevention, energy conservation, mitigation of the greenhouse effect, and other 
areas that can enhance the efficiency of industries or improve the industrial structure, in line with 
the national industrial development strategy.
3. To assist the central authorities in charge of relevant enterprises in handling investment, financing, 
or technology collaboration expenditure relating to relevant projects.
4. To assist the relevant central authorities in charge of relevant enterprises in expenditure required 
for projects undertaken for economic development, agricultural technology development, social 
development, cultural and creative development, introduction of technology, enhancement of R&D, 
development of own brands, human resources cultivation, improvement of the industrial structure 
and relevant matters.
5. Other matters approved by the Executive Yuan on a case-by-case basis.

Article 31
The funding sources of the National Development Fund shall be the appropriations from the 
National Treasury, and in addition, the operating balance of the National Development Fund, if any, 
may be put into the Fund following due budget approval procedures for continuous use.
The regulations governing the management and utilization of the National Development Fund shall 
be prescribed by the Executive Yuan.

Article 32
The central competent authority shall provide guidance and assistance for venture capital enterprises 
in order to stimulate the start-up and growth of domestic new businesses.
The regulations governing the scope of the venture capital enterprises as referred to in the preceding 
Paragraph, the provision of guidance and assistance, and other relevant matters shall be prescribed 
by the central competent authority.

Chapter Nine - Establishment and Management of Industrial Parks

Article 33
A central competent authority, a special municipal/county/city competent authority, a state-owned or 
private enterprise, or an industrial entrepreneur may select a lot of land at a certain size in 
accordance with the relevant industrial park establishment policy, and submit a feasibility study 
report on the land together with all the required documents under the Urban Planning Act, the 
Regional Planning Act, the Environmental Impact Assessment Act, and other relevant laws and 
regulations to the authorities administering the above laws and regulations for approval. After 
approval is obtained from the authorities, the feasibility study report shall be submitted to the 
central competent authority for approval.
After the central competent authority approves the establishment of an industrial park in accordance 
with the preceding Paragraph, it shall instruct the relevant special municipal/county/city competent 
authority to make a public announcement within 30 days. If such public announcement is not made 
within the time limit, the central competent authority may make the public announcement on its 
behalf.
If the area of land selected by a special municipal/county/city competent authority, a state-owned or 
private enterprise or an industrial entrepreneur in accordance with Paragraph 1 does not exceed a 
specific size and is located within the administrative district of a single special 
municipal/county/city, the special municipal/county/city competent authority may propose 
establishment of an industrial park on the land by submitting the documents required by the 
applicable laws and regulations to the competent authority administering such laws and regulations 
for approval. After the competent authority approves the proposal, the proposal shall be submitted to 
the special municipal/county/city competent authority for approval. After the special 
municipal/county/city competent authority approves the proposal, it shall publicly announce it 
within 30 days.
Prior to submitting a feasibility study report under Paragraph 1, a central competent authority, 
special municipal/county/city competent authority, state-owned or private enterprise, or industrial 
entrepreneur shall hold a public hearing to listen to the views of the owners of the land in question 
and other interested parties, and shall take full minutes of the meeting and submit the minutes to the 
relevant competent authorities for their review, except where the state-owned or private enterprise or 
the industrial entrepreneur proposes to establish an industrial park on its own land.
The guidelines for establishing industrial parks under Paragraph 1, the size of the land required for 
the establishment of an industrial park, and the size of an industrial park area that may be approved 
by a special municipal/county/city competent authority as referred to in Paragraph 3 shall be 
prescribed by the central competent authority in consultation with the Ministry of the Interior.

Article 34
Where a state-owned or private sector enterprise or industrial entrepreneur applies for establishment 
of an industrial park, prior to the rezoning of the land in question, an amount equivalent to the 
then-current announced land value of 5% of the total land area at the time of the approval for 
establishment of the industrial park shall be paid to the industrial park development and 
management fund established by the special municipality or county (city) competent authority, 
notwithstanding any restriction under the provisions of Article 15-3 of the Regional Planning Act.
The special municipality and county (city) competent authority shall set aside a specified percentage 
of the sum paid in accordance with the preceding Paragraph to be used for the construction, 
maintenance, or improvement of relevant public facilities in the vicinity of the industrial park and to 
improve environmental protection in the affected area.
The percentage of the funds to be set aside as referred to in the preceding Paragraph shall be 
prescribed by the central competent authority in consultation with the Ministry of the Interior.

Article 35
With respect to the industrial park of which a state-owned or private sector enterprise or an 
industrial entrepreneur applies for establishment, the construction permit shall be obtained within 
three years from the next date on which approval of establishment is publicly announced. If the 
construction permit is not obtained within the prescribed period, the original establishment approval 
shall become invalid.
After the approval for the establishment of an industrial park becomes invalid, the special 
municipality or county (city) competent authority shall notify the land registration authority to 
restore the land to its original zoning and designation pattern, and shall notify the central competent 
authority for recordation.

Article 36
To promote industrial transformation and upgrading in order to maintain the livelihood of local 
industries and small- and medium-sized enterprises and protect local job opportunities and preserve 
the environment, the central competent authority may, in consultation with the Ministry of the 
Interior, plan the establishment of small rural industrial parks or small local industrial parks, and 
may provide necessary assistance, guidance, or grants.
The regulations governing the recipients of the assistance, guidance, or grants as referred to in the 
preceding Paragraph, the eligibility criteria, the review standards, the application procedures, and 
other relevant matters shall be prescribed by the central competent authority.

Article 37
The central competent authority or a special municipality or county (city) competent authority may 
commission a state-owned or private sector enterprise to file the application for establishment of an 
industrial park, and undertake the planning, the development, the lease or sale, or the administration 
of the park.
With respect to the commissioning of enterprises as referred to in the preceding Paragraph, if the 
commissioned state-owned or private sector enterprise is also responsible for raising the necessary 
funds, it may be by means of open selection and the provisions of the Government Procurement Act 
and the Act for Promotion of Private Participation in Infrastructure Projects shall not apply.
The regulations governing eligibility of the state-owned or private sector enterprises as referred to in 
the first Paragraph, the terms and conditions of the commissioning, the scope of commissioned 
business, and the conditions and procedures for the open selection as referred to in the preceding 
paragraph, the handling of expiring development contracts, and relevant matters shall be prescribed 
by the central competent authority.

Article 38
Where the land within an industrial park is to be reclaimed from the sea, the following matters shall 
be performed prior to the commencement of reclamation work:
1. Where the developer is the central competent authority, the approved reclamation construction 
management plan shall be submitted to the Ministry of the Interior for recordation.
2. Where the developer is a special municipality or county (city) competent authority or a 
state-owned or private sector enterprise, or an industrial entrepreneur, the developer shall submit a 
reclamation construction management plan to the central competent authority for review and 
approval, and pay the review fee. Reclamation work shall not begin until a development bond has 
been paid and a development contract has been signed with the central competent authority.
The regulations governing the contents of the reclamation construction management plan as referred 
to in the preceding Paragraph, the application procedures, the development bond, and other relevant 
matters shall be prescribed by the central competent authority.

Article 39
The land in an industrial park may be used as follows:
1. Land for industries.
2. Land for communities.
3. Land for public facilities.
4. Other types of land approved by the central competent authority.
The area of the land for industries shall not be less than 60% of the total land area of an industrial 
park.
The area of the land for communities shall not be more than 10% of the total land area of an 
industrial park.
The area of the land for public facilities shall not be less than 20% of the total land area of an 
industrial park.
The regulations governing the uses of the types of land as referred to in the first Paragraph, the 
permitted scope of use, and other relevant matters shall be prescribed by the central competent 
authority in consultation with the central authorities in charge of relevant enterprises.

Article 40
(deleted)

Article 41
Where the central competent authority or a special municipality or county (city) competent authority 
is to develop an industrial park, after the public announcement of the approval for establishment of 
the industrial park but prior to the commencement of development work, the local special 
municipality government or county (city) competent authority shall publicly announce the 
suspension of transfer of ownership of the land and the buildings thereon, and the suspension of 
accepting applications for construction permits. The announced period of such suspension shall not 
exceed two years. Where a construction permit has already been obtained, construction work shall 
not commence until consent is given by the central competent authority or the special municipality 
or county (city) competent authority.
The suspension of transfer of ownership of land and buildings publicly announced in accordance 
with the preceding Paragraph shall not apply to any transfer effected as a result of inheritance, 
compulsory execution, expropriation for public purposes, or court judgment.

Article 42
Where privately owned land is required by the central competent authority or a special municipality 
or county (city) competent authority for the development of an industrial park, the land may be 
expropriated.
Where government-owned land is required by the central competent authority or a special 
municipality or county (city) competent authority for the development of an industrial park, the 
authority responsible for the sale of the government-owned land in question may conduct the sale 
without being subject to the restrictions set forth in Article 25 of the Land Act or the laws and 
regulations governing the management of public property promulgated by the relevant local 
government.
The sale price of the government-owned land sold in accordance with the preceding Paragraph shall 
be calculated at the same compensation amount for the privately owned land that is located in the 
same land-value area and which is used for the same original purpose and expropriated for 
development of the industrial district. However, if the entire portion of land in the industrial park 
under development is government-owned, the value of such land shall be determined in accordance 
with the evaluation standard applicable to the disposition of ordinary public property.

Article 43
Where a state-owned or private sector enterprise, or an industrial entrepreneur has a need to use 
privately-owned land to develop an industrial park, such developer shall obtain the land on its own. 
However, under any of the following circumstances, the developer may apply to the special 
municipality or county (city) competent authority for land expropriation:
1. Where the original owner of the privately owned land has died and his/her heir fails to apply for 
registration of succession within two years from the date of inheritance.
2. Where the land cannot be purchased due to the death of the administrator of the clan property of 
an ancestral shrine.
Land expropriated in accordance with the preceding Paragraph shall be sold directly to the 
state-owned or private sector enterprise, or industrial entrepreneur as referred to in the preceding 
Paragraph by the special municipality or county (city) competent authority that conducts the 
expropriation without being subject to the restrictions set forth in Article 25 of the Land Act and the 
laws and regulations governing the management of public property promulgated by the relevant 
local government. The sale price shall be determined by the special municipality or county (city) 
competent authority.
Where government-owned land is required by a state-owned or private sector enterprise, or an 
industrial entrepreneur to develop an industrial park, the authority responsible for the sale of the 
government-owned land shall conduct the sale. Where the government-owned land occupies no 
more than one tenth of the total land area of the industrial park, or for no more than 5 hectares in 
total, the restrictions set forth in Article 25 of the Land Act and the laws and regulations governing 
the management of public property promulgated by the relevant local government shall not apply. 
The sale price shall be determined according to the evaluation standard applicable to the disposition 
of ordinary public property.

Article 44
When the central competent authority or a special municipality or county (city) competent authority 
undertakes development of an industrial park, if the park contains land that has already been and 
will continue to be used for industrial purposes, the owner of such land shall share the costs of 
developing and constructing the industrial park in proportion to the size of such land.
The costs of developing and constructing the industrial park shall be determined by the competent 
authority which develops the industrial park.

Article 45
The land, buildings, and facilities located within an industrial park developed by the central 
competent authority or a special municipality or county (city) competent authority shall be utilized, 
used for profit, managed, and disposed of by the relevant competent authority in accordance with 
this Statute without being subject to the restrictions set forth in Article 25 of the Land Act, the 
National Property Act, or the laws or regulations governing the management of public property 
promulgated by the relevant local government.
Where a lease is made for any purposes under the preceding Paragraph, the calculation of rental and 
guarantee bond shall not be subject to the restrictions of Article 97, Paragraph 1 Article 99, or 
Article 105 of the Land Act; the termination of the lease agreement or the recovery of the lease 
property shall not be subject to the restrictions of Paragraph 2 or 3 of Article 440 of the Civil Code 
or Article 100 or 103 of the Land Act. Where a superficies is created for the purposes of the 
preceding Paragraph, the provisions of Paragraph 1 of Article 836 of the Civil Code, which 
stipulates that the total amount of outstanding land rental must amount to the sum of two years' land 
rental before superficies can be invalidated, shall not apply.

Article 46
The land, buildings, and facilities located within an industrial park developed by the central 
competent authority or a special municipality or county (city) competent authority shall be utilized, 
used for profit, or disposed of in accordance with the following provisions respectively. The prices 
of utilizing, profiting from, and disposal of such land, buildings, and facilities shall be determined 
by the competent authority that develops the industrial park, provided that where the development 
funds are all raised by a commissioned state-owned or private sector enterprise, these matters are 
handled in accordance with the terms of the development mandate agreement.
1. With respect to land for industries and the buildings erected thereon, the competent authority that 
develops the industrial park shall handle the lease or sale of, or establishment of superficies on, the 
land or buildings, or shall handle the matters in other ways as approved by the central competent 
authority.
2. With respect to land for communities, the competent authority that develops the industrial park 
shall handle the matters using the following methods in the order of priority:
(1) Allocated sale to the owners of land or buildings purchased or expropriated.
(2) Sale to enterprises located within the industrial park for the construction of employee housing 
and sale to employees for housing construction.
(3) Sale for construction of residential properties.
3. With respect to land for public facilities, public buildings, and public facilities, the competent 
authority that develops the industrial park shall handle their lease, sale, encumbrance, use for 
benefits, and provision for use free of charge.
The term “owners of buildings” as referred to in Item (1) of Subparagraph 2 in the preceding 
Paragraph shall refer to only those owners who have already completed cadastral registration prior 
to the date when suspension of transfer of ownership is announced as referred to in Paragraph 1, 
Article 41 hereof.
The regulations governing the procedures, conditions, and other relevant matters regarding the 
utilization of, profits from, and disposal of the land, buildings, and facilities as referred to in 
Paragraph 1 shall be prescribed by the central competent authority.
With respect to the land located within an industrial park developed by the central competent 
authority or a special municipality or county (city) competent authority, approval may be sought 
from the Executive Yuan for the sale of such land on a case-by-case basis, in line with the policy of 
national economic development, and in light of the location of the land, the anticipated buyers, the 
sale prices and other terms and conditions; the purchasers of the land may complete the construction 
of the relevant public facilities in accordance with the feasibility study.

Article 46-1
Where the owner of a plot of land in an industrial park developed and established by the central 
competent authority or a special municipality or county (city) competent authority has kept the land 
idle for a certain consecutive period without good reasons, and the land is in a condition set forth in 
the criteria for identifying idle land prescribed by the central competent authority, the central 
competent authority may announce that the land is idle, and notify the land owner and the interested 
parties that a building/buildings has/have to be constructed on the land for use in accordance with 
the laws in two years, unless the land is subject to any contract between the land owner and a 
competent authority or is to be disposed of in accordance with the applicable regulations. The 
competent authority may at any time provide guidance to such a landowner and the interested 
parties on how to construct buildings on the land for use within the given time limit.
Where the competent authority orders the construction of buildings for use within the time limit 
pursuant to the preceding paragraph, the competent authority shall request the land registration 
agency to add a note to the registration of such buildings indicating such a requirement. The 
requirement shall be valid for two years. If title to the land is transferred to another within the two 
years, the requirement shall be assumed by the successor to the title.
The two-year period shall be reduced by the number of the days in which the requirement is 
suspended for causes not attributable to the land owner, and may be extended if requested by the 
landowner for good reasons.
Where a building (buildings) has (have) been constructed on a plot of land and used within the 
period under the preceding two paragraphs in accordance with the law, the competent authority shall 
request the land registration agency to cancel the note. Where no building is constructed on such a 
plot of land in the given time limit, the competent authority may fine the landowner with an amount 
of up to 10 percent of the assessed then current value of the idle land and order the land owner to 
propose a correction plan within one month. Upon receipt of the correction plan, the competent 
authority may notify the land owner for consultation. The landowner shall complete the consultation 
within one month of receipt of the notice from the competent authority. To promote use of the land 
in industrial parks in line with the legislative purposes and development of national economy, and 
prevent land hoarding from harming public interests, if a landowner fails to propose an correction 
plan or complete consultation with the competent authority within the given time limit, the authority 
may decide in writing that the idle land shall be put up for open compulsory auction after a 
reasonable price is set on the basis of an appraised market price.
The competent authority shall request branch offices of the Administrative Enforcement Agency of 
the Ministry of Justice to conduct the compulsory auction under the preceding Paragraph. Unless 
otherwise specified in this Article, the auction procedures under the Administrative Enforcement Act 
shall apply mutatis mutandis to the auction under this Article.
If all the bids for a plot of idle land subject to compulsory auction under the preceding two 
paragraphs are deemed invalid; the highest bid from the bidders is lower than the reasonable price 
set on the basis of the appraised market price; any other auction requirements are not met, the land 
shall not be auctioned off.
In the event of a situation described in the preceding paragraph, the competent authority may 
request that another auction for the same or another reasonable price be held in accordance with the 
preceding three paragraphs.
As soon as a plot of land is auctioned off, there shall be no preferential right to purchase the land 
under the Land Act or other laws or regulations, and the competent branch office of the 
Administrative Enforcement Agency of the Ministry of Justice shall ask the land registration agency 
to cancel or remove all the noted requirements for, encumbrances, restraints or leasehold on the land 
before the land is delivered to the winner of the auction. If the competent authority considers it 
unnecessary to continue the auction procedure, it may withdraw its request to the competent branch 
office of the Administrative Enforcement Agency of the Ministry of Justice for the auction, and 
request the land registration agency to cancel the noted requirement.
The criteria for defining idle land and land having been used to construct buildings, public 
announcements, notices, reduction of the time limit for non-attributable causes, reasons supporting 
request for extension of the time limit, matters noted as requested by the competent authorities, the 
methods, procedures, and guidelines for deciding appraised market prices, qualifications for bidders 
for compulsory auction, and the terms for using land acquired under the preceding seven paragraphs 
shall be prescribed by the central competent authorities.

Article 47
With respect to an industrial park developed by the central competent authority or a special 
municipality or county (city) competent authority, where the funds are all raised by the 
commissioned state-owned or private sector enterprise, the development cost, within the term of the 
development mandate agreement, shall be determined by such competent authority. In the event that 
the proceeds from the sale of land or buildings exceed the cost, the commissioned state-owned or 
private sector enterprise shall pay a certain percentage of the difference to the industrial park 
development and management fund established by such competent authority. The certain percentage 
shall not be lower than 50% of the difference.
On the expiry of the development mandate agreement, the competent authority that develops the 
industrial park may dispose of any as yet unleased and unsold land or buildings located within the 
industrial park using one of the following methods:
1. Paying a reasonable price to the commissioned state-owned or private sector enterprise, provided 
that such reasonable price does not exceed the share of the actual development costs allocated to the 
land or buildings in question.
2. Notifying the special municipality or county (city) government within whose jurisdiction the 
industrial park is located to instruct the relevant registration authority to transfer the ownership to 
the commissioned state-owned or private sector enterprise. The commissioned state-owned or 
private sector enterprise shall continue to use and dispose of the same in accordance with the 
planning for the industrial park.
The method for determining the development cost, the payment percentage of the difference, and 
the method for calculating the reasonable price as referred to in the preceding two Paragraphs shall 
be expressly stipulated by the competent authority in the development mandate agreement.

Article 48
With respect to an industrial park developed by the central competent authority or a special 
municipality or county (city) competent authority, with the exception of land for communities that is 
allocated for sale, when selling all other land and buildings, the purchaser shall pay the development 
and management fund in an amount equivalent to 1% of the purchase price to the industrial park 
development and management fund established by the competent authority.
Prior to the registration of transfer of ownership in accordance with Subparagraph 2, Paragraph 2 of 
the preceding Article, the commissioned state-owned or private sector enterprise shall pay the 
industrial park development and management fund in an amount equivalent to 1% of the reasonable 
price.

Article 49
To meet the needs of industrial park development and ensure sound industrial park management, the 
central competent authority or a special municipality or county (city) competent authority may 
establish an industrial park development and management fund.
In principle, an industrial park development and management fund shall be established in such a 
way as to be self-financing.
The funding sources for an industrial park development and management fund shall be as follows:
1. Monetary contributions made in accordance with the provisions of this Statute.
2. Interest on loans.
3. Payments received in accordance with the provisions of the preceding Article.
4. Industrial park maintenance fees, usage charges, administration fees, service fees, and royalties.
5. Remnant funds left over after the completion of the industrial park development.
6. Appropriations by the government in accordance with budgetary procedures.
7. Interest income of the fund.
8. Revenue from investment in relevant enterprises located in the industrial park.
9. Income in excess of the cost collected in accordance with the provisions of Paragraph 1, Article 
47 above.
10. Other relevant sources of income.
The industrial park development and management fund may be used for the following purposes:
1. To provide financing for industrial park development.
2. To subsidize the increased interest on development cost where it proves impossible to sell or lease 
the land or buildings within the industrial park for an extended period, resulting in a situation where 
the rental or price of land or buildings within the industrial park is higher than the rental or price of 
land or buildings for equivalent use in the neighboring areas.
3. To pay for the construction, maintenance, or improvement of public facilities in the industrial 
park or the adjacent areas.
4. To meet the operating costs of the industrial park administration.
5. To improve environmental protection in the industrial park or in the adjacent areas affected by the 
industrial park.
6. To fund research, planning, or promotional work relating to the industrial park.
7. To make investments in businesses related to the industrial park.
8. To pay out specified amounts for subsequent relief or compensation relating to major accidents 
within the industrial park that affect the general public.
9. Other relevant expenditures.

Article 50
An industrial park shall establish an administration agency in accordance with the following 
provisions to handle the management and maintenance of and provide services and guidance 
relating to land for public facilities, public buildings, and public facilities within the industrial park:
1. In the case of an industrial park developed by the central competent authority or a special 
municipality or county (city) competent authority, the competent authority shall establish the 
administration agency. The competent authority may also commission another authority or a 
state-owned or private sector enterprise to establish or manage the administration agency.
2. In the case of an industrial park developed by a state-owned or private sector enterprise, when 
arranging the lease or sale of the land, such state-owned or private enterprise shall apply to the 
special municipality or county (city) government with jurisdiction over the industrial park for the 
establishment of an administration agency with a juridical person status.
3. In the case of an industrial park jointly developed by two or more industrial entrepreneurs, the 
administration agency shall be established at the time of the public announcement of industrial park 
establishment by the local special municipality or county (city) competent authority.
4. In the case of an industrial park developed by a single industrial entrepreneur, or where the 
entirety of such industrial park is leased or sold to another single industrial entrepreneur for the 
exclusive use of such industrial entrepreneur, the requirement to establish an administration agency 
may be waived.
With respect to the administration agency established by the central competent authority or a special 
municipality or county (city) competent authority in accordance with the provisions of the preceding 
Paragraph, the regulations governing the organization, personnel management, salaries standards, 
deposits for retirement/severance benefits, consolation payments, and other relevant matters shall be 
prescribed by the competent authority.
Where the central competent authority or a special municipality or county (city) competent authority 
commissions another authority or enterprise to establish the administration agency on its behalf in 
accordance with the provisions of Subparagraph 1, Paragraph 1, the regulations governing the 
operation, management, and other relevant matters shall be prescribed by the central competent 
authority.

Article 51
With respect to an industrial park developed by the central competent authority or a special 
municipality or county (city) competent authority, the land for public facilities, public buildings, and 
public facilities in the park shall be managed by the industrial park administration agency on behalf 
of the competent authority, and shall be registered in accordance with the following provisions, 
unless otherwise provided for in this Statute:
1. In the case of an industrial park developed by the central competent authority, the state shall be 
the registered owner, and the management agency shall be the Ministry of Economic Affairs. 
However, the land for public facilities, public buildings, and public facilities within a community 
shall be registered as owned by the local special municipality or county (city), and the management 
agency shall be the competent authority of such special municipality or county (city) government.
2. In the case of an industrial park developed by a special municipality or county (city) competent 
authority, the municipality or county (city) shall be the registered owner, and the management 
agency shall be the special municipality or county (city) competent authority.
In the case of an industrial park developed by a state-owned or private enterprise, ownership of the 
land for public facilities, public buildings, and public facilities shall be transferred free of charge to 
the relevant administration agency. However, if the land for public facilities, public buildings, and 
public facilities are for the use of unspecified people or are located in communities, their registered 
owners shall be the local special municipalities or counties (cities), and shall be managed by the 
competent authorities of the special municipal or county (city) governments.
Once ownership has been transferred by a state-owned or private enterprise to the administration 
agency in accordance with the provisions of the preceding Paragraph, the lease of, sale of, 
encumbrance on, or other disposal of the land for public facilities, public buildings, and public 
facilities shall not be valid unless it has been approved by the competent authority of the special 
municipality or county (city) government.

Article 52
An industrial district that developed before this Statute comes into force may establish an 
administration agency in accordance with the provisions of Article 50.
In the case of an industrial district developed by a special municipality or county (city) competent 
authority before this Statute comes into force, if it is being managed by the central competent 
authority, the central competent authority may transfer the responsibility for management of the 
industrial district to the special municipality or county (city) competent authority, and may conduct 
transfer registration with respect to the land for public facilities, public buildings, and public 
facilities within the industrial district without being subject to the restrictions set forth in Article 25 
of the Land Act, the National Property Act, and the laws and regulations governing the management 
of public property promulgated by the relevant local government.
The regulations governing the transfer of responsibility as referred to in the preceding Paragraph, 
conditions of accepting responsibility, procedures, and other relevant matters shall be prescribed by 
the central competent authority.

Article 53
An administration agency that has been established in accordance with the provisions of Article 50 
may require payment of the following fees from the users of the industrial park:
1. General maintenance fees for public facilities.
2. Usage fees for the waste water treatment system.
3. Usage fees or maintenance fees for other specific facilities.
The charging rates for the above fees shall be formulated by the administration agency. In the case 
of an industrial park developed by the central competent authority, the charging rates shall be 
reported to the central competent authority for its approval. In the case of an industrial park 
developed by the competent authority at the special municipality or county (city) government level, 
or by a state-owned or private sector enterprise, the charging rates shall be reported to such special 
municipality or county (city) competent authority for its approval.
If users of an industrial park developed by the central competent authority or a special municipality 
or county (city) competent authority fail to pay the fees prescribed in Paragraph 1 within the 
deadline specified, they shall pay a delinquent fee equivalent to 1% of the fees due for every two 
days of delay; the cumulative total delinquent fee shall be capped at 15% of the total fees payable 
by the delinquent users.

Article 54
The central competent authority or a special municipality or county (city) competent authority may 
alter the land allocation plan for an industrial park if necessary for government policy or industrial 
development, provided that such alteration does not go against the land area percentages, land uses, 
and usage regulations provided in Paragraphs 2 through 5 of Article 39.
The proviso in the preceding Paragraph regarding land area percentages shall not apply to industrial 
land or industrial districts that were approved on or prior to December 31, 1999.
A landowner may apply to the central competent authority or a special municipality or county (city) 
competent authority for land rezoning. In such cases, the central competent authority or the special 
municipality or county (city) competent authority shall charge the applicant a review fee for 
reviewing the rezoning application.
Where a rezoning application submitted in accordance with the provisions of the preceding 
Paragraph is approved by the central competent authority or a special municipality or county (city) 
competent authority, the applicant shall make a monetary contribution based on the rezoning 
category and a certain percentage of the current announced land value as of the time of the approval.
With respect to the land rezoning plans as referred to in Paragraphs 1 and 3, the regulations 
governing the eligibility criteria, the required documents, the application procedures, the approval 
criteria, the grounds for revocation or abolishment, the standards for setting the review fees and 
monetary contribution as referred to in the two preceding Paragraphs, and other relevant matters 
shall be prescribed by the central competent authority.

Article 55
If the entirety or a part of an industrial park no longer needs to exist due to changes in the overall 
environment, the central competent authority or the special municipality or county (city) competent 
authority that originally gave approval for its establishment may revoke the original approval. Such 
revocation of the original approval shall be publicly announced by the special municipality or 
county (city) competent authority within 30 days from the date of revocation. If the special 
municipality or county (city) competent authority does not announce such revocation within the 
time limit, the central competent authority may make the announcement on its behalf. Where the 
revocation of the original approval concerns rezoning of land, the approval of the authority in 
charge of urban planning or regional planning shall be obtained before the public announcement can 
be made.
Where the original approval is revoked by a special municipality or county (city) competent 
authority in accordance with the preceding Paragraph, the competent authority shall submit 
documents regarding the revocation to the central competent authority for recordation.
The regulations governing the criteria for determining whether existence of an industrial park is no 
longer needed as referred to in Paragraph 1, the procedures for revocation of an establishment 
approval, and other relevant matters shall be prescribed by the central competent authority.

Chapter Ten - Establishment and Management of Exclusive Industrial Harbors and Exclusive 
Industrial Wharfs

Article 56
The central competent authority, based on policies or to meet the operational needs of the industrial 
entrepreneurs within the industrial park, may establish an exclusive industrial harbor or exclusive 
industrial wharf within an industrial park the establishment of which it has approved, if, through 
evaluation, it has been determined that the needed service cannot be provided by neighboring 
commercial ports.
The central competent authority shall first consult with the Ministry of Transportation and 
Communications, and then submit the proposal to establish an exclusive industrial harbor or 
exclusive industrial wharf to the Executive Yuan for approval.
For the delineation of the zone for an exclusive industrial harbor or exclusive industrial wharf, the 
central competent authority shall consult with the Ministry of Transportation and Communications, 
the Ministry of the Interior, and other relevant agencies, and then submit the proposal to the 
Executive Yuan for approval.
For the designation of an exclusive industrial harbor or exclusive industrial wharf, the central 
competent authority and the Ministry of Transportation and Communications shall jointly seek the 
approval of the Executive Yuan, and make a public announcement upon the granting of an approval.

Article 57
The land within an exclusive industrial harbor or an exclusive industrial wharf shall be registered as 
state-owned, and the Ministry of Economic Affairs shall be the management agency.
The permitted users of the exclusive industrial harbor or the exclusive industrial wharf shall be 
determined by the central competent authority in consultation with the Ministry of Transportation 
and Communications.
An exclusive industrial harbor or the exclusive industrial wharf shall not be used for any purposes 
other than for the industrial park.

Article 58
An exclusive industrial harbor or exclusive industrial wharf may be constructed and operated 
directly by the central competent authority, or alternatively, the central competent authority may 
approve its investment, construction, and operation by a state-owned or private sector enterprise.
Where the central competent authority has approved a state-owned or private sector enterprise to 
invest in the construction and operation of an exclusive industrial harbor or exclusive industrial 
wharf, the central competent authority shall sign an investment and construction agreement with the 
state-owned or private sector enterprise, and shall collect royalties from the enterprise, to be paid to 
the industrial park development and management fund established by the central competent 
authority.
Where a state-owned or private sector enterprise invests in the construction of facilities and 
buildings relating to the investment and construction of an exclusive industrial harbor or exclusive 
industrial wharf as referred to in Paragraph 1, a clause may be included in the investment and 
construction agreement specifying that, during the period of construction and operation, the 
facilities and buildings shall be registered as owned by the state-owned or private sector enterprise, 
and that the enterprise shall be responsible for their management and maintenance.
During the period of construction and operation as referred to in the preceding Paragraph, the 
state-owned or private sector enterprise shall not transfer ownership of the facilities and buildings 
that it has invested in and constructed. Upon the expiry of the period of construction and operation, 
ownership of the facilities and buildings shall be transferred to the state, and the facilities and 
buildings shall be managed by the central competent authority.
The regulations governing the execution of the planning and construction of an exclusive industrial 
harbor or exclusive industrial wharf, harbor operation, wharf management, construction of exclusive 
wharf, management and maintenance, entry into and exit from the harbor by vessels, mooring, 
lay-up, harbor safety, regulations governing industries in the harbor area, and other relevant matters 
shall be prescribed by the central competent authority in consultation with the Ministry of 
Transportation and Communications.

Article 59
The central competent authority may approve the lease of wharf land within an exclusive industrial 
harbor to industrial entrepreneurs located within the industrial park for use in the construction of 
relevant facilities and buildings for their own use. The constructed facilities and buildings may be 
registered as the property of the industrial entrepreneurs, who shall be responsible for their 
management and maintenance.

Article 60
If necessary for national security or government policy, the central competent authority may reclaim 
land and relevant facilities and buildings located within an exclusive industrial harbor or exclusive 
industrial wharf.
Where the central competent authority reclaims land and relevant facilities or buildings in 
accordance with the provisions of the preceding Paragraph, it shall compensate the state-owned or 
private sector enterprise or industrial entrepreneur for the following:
1. Any operating loss sustained as a result of such reclaim.
2. With respect to the relevant facilities or buildings the construction of which had been approved, 
the compensation shall be based on the value determined by the central competent authority at the 
time of construction completion, less allowance for depreciation.
Where a state-owned or private sector enterprise as referred to in Paragraph 1 of Article 58 breaches 
the investment and construction agreement, or where an industrial entrepreneur as referred to in the 
preceding Article breaches the lease agreement, leading the central competent authority to terminate 
the investment and construction agreement or the lease agreement, the central competent authority 
may reclaim the land and relevant facilities and buildings within the exclusive industrial harbor or 
exclusive industrial wharf; no compensation shall be paid for any relevant facilities or buildings that 
have been constructed by the state-owned or private sector enterprise or industrial entrepreneur.

Article 61
If, during the period of construction, management or use of an exclusive industrial harbor or 
exclusive industrial wharf, a state-owned or private sector enterprise as referred to in Paragraph 1 of 
Article 58 or an industrial entrepreneur as referred to in Article 59 falls seriously behind schedule in 
construction work, or there is a serious deficiency in the quality of construction, or there is 
inappropriate management, or the public welfare is threatened, or the normal operation of the 
relevant facilities of an exclusive industrial harbor or exclusive industrial wharf is disrupted, or any 
other major problem occurs, the central competent authority may handle these matters in the 
following order of priority:
1. Order the correction of the situation within a specified time limit.
2. In case of a failure to correct the situation within the specified time limit, or if the corrective 
measures are ineffective, the central competent authority may order the stoppage of all or part of the 
construction, management, or usage within a specified time period.
3. In case of a failure to correct or if the corrective measures are ineffective, and the situation is 
serious, the central competent authority may revoke the approval for construction and operation, and 
may compulsorily take over the operation.
The regulations governing the person taking over the operation compulsorily as referred to in the 
preceding Paragraph, matters to be publicly announced prior to the take-over, matters that the party 
against which the take-over is effected is required to comply with, workers’ rights and benefits, 
expenses incurred for the take-over of operation, termination of the take-over of operation, and 
other relevant matters shall be prescribed by the central competent authority.

Article 62
The central competent authority may collect administration fees from the users of an exclusive 
industrial harbor or exclusive industrial wharf.
The owner of the relevant facilities and buildings within an exclusive industrial harbor or exclusive 
industrial wharf may collect usage fees from the users of such facilities or buildings.
The operator of an exclusive industrial harbor or exclusive industrial wharf may collect service fees 
from the users of such exclusive industrial harbor or exclusive industrial wharf.
With respect to the administration fees, usage fees, and service fees as referred to in the three 
preceding Paragraphs, the regulations governing fee items, charging rates, and methods of 
calculation shall be prescribed by the central competent authority in consultation with the Ministry 
of Transportation and Communications.

Article 63
To prevent imminent danger or to meet the special needs of emergency, the central competent 
authority or the authority in charge of navigation may demand use of the facilities of exclusive 
industrial harbors or exclusive industrial wharfs free of charge.

Article 64
Regarding the planning, construction, administration, operation, and security of exclusive industrial 
harbors or exclusive industrial wharfs, in addition to the provisions of this Statute, the provisions of 
Articles 5, 10, 16 to 21, 23 to 26 and 29, Paragraph 3 of Article 30, Articles 31 to 33, Articles 37 to 
48 and Article 50 of the Commercial Harbor Act shall apply mutatis Mutandis.
The central competent authority may only authorize a commercial harbor management agency to 
take charge of the administration of an exclusive industrial harbors or exclusive industrial wharfs in 
consultation with the Ministry of Transportation and Communications.

Chapter Eleven - Factory Expansion Guidance

Article 65
Where an industrial entrepreneur needs to use adjacent non-urban land for the expansion of 
industrial activities or the establishment of pollution prevention facilities, the expansion plan and 
the size of the land needed shall be subject to approval by the special municipality or county (city) 
competent authority, and the competent authority will issue an industrial land certificate for the 
purposes of land rezoning.
Industries needing expansion of industrial activities as referred to in the preceding Paragraph shall 
be restricted to low-polluting industries, as defined by the relevant special municipality or county 
(city) competent authority.
Where expansion of industrial activities is conducted in accordance with the provisions of 
Paragraph 1, 10% of the total rezoned area shall be set aside for use as green space. The relevant 
special municipality or county (city) competent authority shall conduct the rezoning of the green 
space land as national safety use land.
An industrial entrepreneur who wishes to expand industrial activities or establish pollution 
prevention facilities shall make a monetary contribution prior to the rezoning of the relevant land. 
The provisions of Paragraph 1, Article 34 shall apply mutatis mutandis to the calculation and 
payment of the monetary contribution.
With respect to the state-owned land located in an expanded area as referred to in Paragraph 1, the 
agency responsible for selling the land shall conduct sale or lease of the land without being subject 
to the restrictions of Article 25 of the Land Act or the laws or regulations governing management of 
public property promulgated by the relevant local government.
The sale price shall be set according to the price calculation standards for the disposal of ordinary 
public property.
Where a special municipality or county (city) competent authority reviews an expansion plan, it 
shall collect a review fee from the applicant.
The regulations governing the criteria for application for expansion plans as referred to in Paragraph 
1, the documents needed, the application procedures, the restrictions on the size of land for which 
application may be made, the criteria for determining whether an industrial activity falls under the 
category of “low-polluting” industrial activities as referred to in Paragraph 2, the standards for 
collection of review fees as referred to in the preceding Paragraph, and other relevant matters shall 
be prescribed by the central competent authority.

Article 66
An industrial entrepreneur applying for the use of adjacent non-urban land shall complete the 
utilization of the land in accordance with the approved expansion plan within two years from the 
day following completion of the rezoning of the utilized land. Until such time as the utilization of 
the land has been completed, the industrial entrepreneur shall not re-sell, sub-let, create superficies 
on, or in any other fashion allow another party to use the land, in whole or in part.
If, for reasons, an industrial entrepreneur is unable to complete utilization of the land within the 
time limit specified in the preceding Paragraph, such industrial entrepreneur may apply to the 
relevant special municipality or county (city) competent authority for an extension of no more than 
two years.
If, during the period specified in the preceding two Paragraphs, an industrial entrepreneur uses the 
land in violation of the approved expansion plan, the relevant special municipality or county (city) 
competent authority shall order the industrial entrepreneur to correct the situation within a specified 
time limit. If the industrial entrepreneur fails to correct the situation within the time limit, the 
special municipality or county (city) competent authority shall revoke the original approval, and 
shall notify the relevant agencies that the land must be restored to its original zoning designation, 
and any construction permits or miscellaneous permits already issued for the land must be revoked.
If an industrial entrepreneur fails to complete utilization of the land during the period specified in 
the preceding two Paragraphs, the relevant special municipality or county (city) competent authority 
shall revoke the original approval, and shall notify the relevant agencies that the land must be 
restored to its original zoning designation, and any constructions permits or miscellaneous permits 
already issued for the land must be revoked.

Chapter Twelve - Penalties

Article 67
If the use by an industrial entrepreneur or a state-owned or private sector enterprise violates the 
provisions of Paragraphs 2 or 3 of Article 57, the central competent authority may impose an 
administrative fine ranging from NT$2 million to NT$10 million.
If an industrial entrepreneur or a state-owned or private sector enterprise violates the provisions 
relating to the execution of planning and construction, entry into and exit from the harbor by vessels, 
mooring, lay-up, harbor safety, or regulation of industries in the harbor area contained in the 
regulations prescribed in accordance with Paragraph 5 of Article 58, the central competent authority 
may impose an administrative fine ranging from NT$300,000 to NT$1,500,000.

Article 67-1
For application of Articles 12-1, 12-2 or 19-1, a company shall, in the year its shareholders transfer 
shares or deliver shares by book-entry transfer, or prior to January 31 of the year after the year of 
expiration of the tax deferral period, file information regarding the shares transferred, delivered by 
book-entry transfer, or shares not yet transferred with the competent taxation authority in the 
prescribed format. If the company fails to file such information before the deadline or files untrue 
information, the taxation authority shall order it to file a supplemental report within a time limit and 
fine the representative of the company at 10 percent of the income that should have been declared or 
has been omitted, provided that the fine is not over NT$500,000 and no less than NT$50,000. 
Where a company voluntarily files the information after the deadline, the fine shall be reduced by 
50 percent.
Where a company fails to file a supplemental report on the above information before the deadline as 
ordered by the taxation authority, the representative of the company shall be fined at 15 percent of 
the income that should have been declared or has been omitted, provided that the fine is not over 
NT$1 million and no less than NT$100,000.

Article 67-2
If an enterprise eligible for the tax benefit under Article 23-1 is in one of the following situations, 
the taxation authority shall impose penalties according to the relevant Subparagraph:
1. Where the enterprise fails to file an annual income tax return within the prescribed period set 
forth in Article 71 of the Income Tax Act, but subsequently files the annual income tax return in 
accordance with Paragraph 1, Article 79 of the Act, it shall pay a delinquent reporting surcharge 
equal to 10 percent of the tax calculated at the profit-seeking enterprise income tax rate applicable 
in the current year on its annual income determined by the taxation authority through investigation. 
The amount of the delinquent reporting surcharge shall not exceed NT$30,000 but shall not be less 
than NT$1,500.
2. Where the enterprise further fails to file an annual income tax return within the time limit 
prescribed in Paragraph 1, Article 79 of the Income Tax Act, it shall pay a late filing fee equal to 20 
percent of the tax calculated at the profit-seeking enterprise income tax rate applicable in the current 
year on its annual income determined by the taxation authority through investigation. The amount of 
the late filing fee shall not exceed NT$90,000 but shall not be less than NT$4,500.
3. Where the enterprise has filed an annual income tax return, or its final report on total business 
income or income earned from liquidation, but has under-declared or omitted to declare any income, 
it shall pay a fine of up to two times the tax calculated at the profit-seeking enterprise income tax 
rate applicable in the current year on the income it has under-declared or omitted to declare.
4. Where the enterprise fails to file an annual income tax return, or its final report on total business 
income or income earned from liquidation in accordance with the Income Tax Act, and the taxation 
authority finds through investigation that the enterprise has under-declared or omitted to declare its 
taxable income assessed in accordance with the Act, it shall pay a fine of up to three times the tax 
calculated at the profit-seeking enterprise income tax rate applicable in the current year on the 
income it has under-declared or omitted to declare.
5. Where the enterprise fails to calculate each partner’s income from seeking profits in proportion to 
the earnings distributed to the partner in accordance with Paragraph 2, Article 28 of the Limited 
Partnership Act, it shall pay a fine equal to five percent of the difference between the amount of 
income calculated by the enterprise and the amount of income calculated in accordance with the 
applicable proportion. The fine shall not exceed NT$300,000 but shall not be less than NT$15,000.
6. Where the enterprise fails to file the documents under Paragraph 7 of Article 23-1 before the 
given deadline or makes any false statements in such documents, it shall pay a fine of NT$7,500 and 
file the documents or correct the statements within a time limit set forth in a notice. If it still fails to 
file the documents or correct the statements within the time limit, it shall pay a fine equal to 5 
percent of the income not duly declared in the documents. The fine shall not exceed NT$300,000 
but shall not be less than NT$15,000.
Under any of the following circumstances, a tax withholder under Paragraph 8, Article 23-1 shall be 
subject to the applicable punishment set forth below.
1. Where the tax withholder fails to withhold tax in accordance with Paragraph 8, Article 23-1, it 
shall be given a time limit for paying the tax not withheld or under-withheld and filing a 
supplemental tax-withholding certificates and shall also pay a fine of up to the amount of the tax 
that should have been withheld or was under-withheld. If the tax withholder fails to pay the tax 
amount it should have withheld or it under-withheld, or to submit correct tax-withholding 
certificates within the given time limit, it shall pay a fine of up to three times the tax amount which 
should have been withheld or was under-withheld.
2. A tax withholder who has withheld taxes in accordance with Paragraph 8, Article 23-1 but fails to 
file a truthful tax withholding return or issue a truthful tax-withholding certificate within the time 
limit prescribed in the same paragraph shall be given a time limit for supplementally filing the 
return or issuing the certificate and shall pay a fine at 20 percent of the tax amount withheld. The 
amount of the fine, however, shall not exceed NT$20,000 or be less than NT$ 1,500. If the return is 
filed or the certificate is issued after the deadline as a result of the tax withholder’s own initiative, 
the fine shall be reduced by 50 per cent. If a tax withholder fails to file a truthful tax withholding 
return or issue a truthful tax-withholding certificate within a time limit as demanded by the tax 
authority, the tax withholder shall pay a fine of up to three times the amount of the tax withheld. The 
amount of the fine, however, shall not exceed NT$ 45,000 or be less than NT$ 3,000.
3. A tax withholder who fails to pay the withheld tax within the time limit prescribed in Paragraph 8, 
Article 23-1 shall pay a surcharge for delinquent payment at one per cent of the amount of the 
payment due for every two days of delay.

Chapter Thirteen - Supplementary Provisions

Article 68
This Statute shall also apply to industrial land and industrial districts designated as such in 
accordance with the former Act for the Encouragement of Investment or the former Statute for 
Upgrading Industries before this Statute comes into force.

Article 69
With regard to business entities that do not conform to the definition of “companies” and 
“enterprises” given in Article 2 of this Statute, if they are recognized by the central authorities in 
charge of relevant enterprises, the provisions of Articles 9, 13, 14, 16 and 26 to 28 of this Statute 
regarding incentives, grants, or guidance may apply mutatis mutandis to them.

Article 70
Anyone having received tax reductions, incentives, or grants under other laws or regulations shall 
not receive incentives or grants provided by this Statute for the same matters.
If a company or enterprise has committed a material violation of any law governing environmental 
protection, labor, or food safety and sanitation in the past three years, and such violation has been 
confirmed by the central authority in charge of the relevant enterprises, the company or enterprise 
shall not apply for any of the incentives or grants under this Statute and shall return any and all the 
incentives or grants received in accordance with this Statute during the period of such violation.
Where an incentive or grant has to be recovered in accordance with the preceding paragraph, the 
central authority in charge of the relevant enterprises shall publish the name of the company or 
enterprise on its official website after the decision on the recovery becomes final. Where tax 
benefits granted to a company or enterprise in accordance with this Statute have been terminated or 
recovered in accordance with Paragraph 2, Article 48 of the Tax Collection Act, the Ministry of 
Finance shall publish the name of the company or enterprise in the year after the ruling on 
termination and recovery becomes final, and such publication is not subject to the restrictions under 
Article 33 of the Tax Collection Act.

Article 71
The enforcement rules of this Statute shall be prescribed by the central competent authority.

Article 72
This Statute shall come into force on the date of promulgation. However, implementation of Article 
10 shall be from January 1, 2010, to December 31, 2019.
Amended Article 10, 12-1 and 19-1 as promulgated on December 30, 2015, shall be implemented 
from January 1, 2016 to December 31, 2019.
Amended Articles 12-1, 12-2, and 19-1 as promulgated on November 22, 2017, shall be 
implemented from November 24, 2017 to December 31, 2019, while Articles 10 and 23-2 shall be 
implemented from November 24, 2017 to December 31, 2029.
Amended Article 19-1 as promulgated on June 20, 2018, shall be implemented from June 22, 2018 
to December 31, 2019.
Amended Articles 12-1, 12-2, and 19-1 as promulgated on June 21, 2019, shall be implemented 
from January 1, 2020 to December 31, 2029, while Article 23-3 shall be effective from the date of 
promulgation to December 31, 2029.
Data Source:Ministry of Economic Affairs R.O.C.(Taiwan) Laws and Regulations Retrieving System