Regulations on Tax Reduction Encouragement for Introduction of Industries into New Towns Article 11

For the machines, equipment, and buildings for which investment allowance is applied under the Regulations, in case of resale, sublease, lending, return, discarding, auction, stealing, recovery by others pursuant to law, change of the original purpose of use or transfer to a place beyond the allocated range prescribed in Article 3 within three years commencing from the next day of issuance of the investment allowance certificate, the applicant shall repay the reduced operating income tax to the tax authority. In addition, the applicant shall pay the interest accrued on a daily basis according to the fixed interest rate for one-year fixed term deposits as postal savings on January 1 of each year, commencing from the next day of expiration date of the settlement and declaration of the reduced profit-seeking enterprise income tax of that very year to the date of payment.Disposal of machines, equipment and buildings due to disasters or events of force majeure is not subject to the provisions of the preceding paragraph. The applicant shall submit a list of losses and supporting documents within thirty (30) days from the next day of the occurrence of the fact to the tax authority for investigation; if the applicant fails to submit a list of losses and supporting documents to the tax authority for investigation before the prescribed time but can provide concrete evidence to prove that the losses are real, the applicant shall still submit a list of losses and supporting documents to the tax authority for verification and determination.The disaster or event of force majeure referred to in the preceding paragraph shall be governed by the provisions of Paragraph 1, Article 10.1 of the Enforcement Rules for the Income Tax Act.