Value-added and Non-value-added Business Tax Act Article 11

The business tax rates of banking, insurance, investment trusts, securities, futures, commercial paper and pawnshops are as follows:1. The tax rate provided in Article 10 shall apply to the enterprises for their sales amounts which are not connected exclusively with their core business.2. 5% tax rate shall apply to the banking and insurance enterprises for their sales amounts which are connected with banking and insurance business, however, property insurance enterprises shall deduct the amounts of compensation when computing their business tax payable. But the sales amounts from reinsurance premiums shall be taxed at 1%.3. 2% tax rate shall apply to the enterprises for their sales amounts which are connected exclusively with their core business separate from the preceding 2 subparagraphs.The scope of “business not exclusive to the enterprises” and “core business of banking and insurance” shall be prescribed by the MOF, and submitted to the Executive Yuan for approval.From May 16, 2014 as the amended article came into force to December 31, 2024, the tax revenues from prescribed under Subparagraphs 1 and 3, Paragraph 1, and the revenues from 2% tax rate under Subparagraph 2, Paragraph 1 shall be appropriated to the Financial Special Reserves. The regulations for the operation, administration of the Reserves and other regulatory matters shall be prescribed by the Financial Supervisory Commission.During the period while the business tax revenues are appropriated to the Financial Special Reserves as referred to in the preceding paragraph, the Executive Yuan shall compensate local governments for the reduction of revenue losses due to the decrease of the centrally-allotted tax revenues according to the Act Governing the Allocation of Government Revenues and Expenditures, unless the Act is subsequently revised.