Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing Article 19
The Profit Split Method prescribed in the Regulations refers to allocate the operating profit to each participant, which shall be calculated based on the contribution to the combined operating profits of all participants in the situation where the activities of the participants of the Controlled Transaction are highly integrated so that the profit or losses cannot be measured individually, or where each of the participants of the Controlled Transaction makes unique and valuable contributions in relation to the Controlled Transaction. The combined operating profit shall be allocated based on the following steps:1. Allocate regular income based on regular contributions:(1)Using the combined operating profit as a basis to allocate operating income to each party of the Controlled Transactions to provide a fair market return for its regular contributions of the relevant business activity.(2)Regular contributions are contributions of the same or similar kind to those made by unrelated parties involved in similar business activities in which it is possible to identify the fair market returns.(3)When calculating the regular profit, a functional analysis is required to identify the fair market returns on relevant business activities to be allocated in accordance with the functions performed, risks assumed, and resources employed by each participant. The fair market return can be determined pursuant to the 5 preceding Articles hereof.2. Allocate residual profit in accordance with the contribution of intangible property:The residual profit, which is equivalent to the amount of the combined operating profit less the regular profit allocated to each participant, shall be divided based on each participant’s relative contribution to the intangible property in the relevant business activity. The relative value of the intangible property contributed by each participant may be measured by external market benchmarks that reflect the fair market value of such intangible property, the capitalized cost of developing the intangibles and all related improvements and updates, less an appropriate amount of amortization.When evaluating the applicability of the Profit Split Method, the factors prescribed in Paragraph 1 of Article 8, particularly the following factors, shall be considered:1. The factors to be considered when determining the fair market return of the regular contribution, including the functions performed, risks assumed, and the assets employed.2. The rationality and compatibility of the allocation of costs and expenses, income and assets between the relevant operating activities and other activities of the related parties.3. Consistency in accounting practices.4. The degree of reliability of the data used and the assumptions made in measuring the relative value of the intangible property contributed by each participant.If there are any differences among the factors prescribed in Subparagraphs 1 to 3 of the preceding Paragraph between the participants of the Controlled Transaction and the operating activities they are engaged in, and the Unrelated Parties and the same or similar operating activities they are engaged in, appropriate adjustments should be made to eliminate the effect with respect to the differences. In the event that the effect of such differences cannot be eliminated by appropriate adjustments, other Arm's-length Methods as set forth hereunder shall be employed.
中文原文 營利事業所得稅不合常規移轉訂價查核準則第19條
本準則所定利潤分割法，係於受控交易之各參與人所從事之活動高度整合致無法單獨衡量其交易結果，或受控交易之各參與人均對受控交易作出獨特且有價值之貢獻時，依各參與人對所有參與人合併營業利潤之貢獻，計算各參與人應分配之營業利潤。
合併營業利潤之分配，依下列步驟辦理：
一、按例行性貢獻分配例行性利潤：
（一）以合併營業利潤為基礎，依各參與人從事相關營業活動之例行性貢獻，分配其應得之市場公平報酬。
（二）所稱例行性貢獻，指非關係人對於相同或類似營業活動之貢獻，其以可資辨識市場公平報酬之營業活動為基礎。
（三）計算例行性利潤時，應進行功能分析，依各參與人執行之功能、承擔之風險及使用之資產，確認其從事相關營業活動應分配之市場公平報酬。
市場公平報酬，得參照前五條規定之方法決定之。
二、按對無形資產之貢獻分配剩餘利潤：合併營業利潤減除依前款規定分配予各參與人之例行性利潤後，以其餘額按各參與人於相關營業活動中對於無形資產之貢獻價值，計算其應分配之剩餘利潤。
無形資產之貢獻價值，得以外部市場公平報酬，或無形資產之開發及所有相關改良、更新之資本化成本減除適當攤銷後之餘額為衡量標準。
評估利潤分割法之適用性時，應考量第八條第一項規定之因素，尤應特別考量下列因素：
一、決定例行性貢獻市場公平報酬之方法所應考量之因素，包括執行之功能、承擔之風險及使用之資產。
二、成本、費用、所得及資產，於相關營業活動及其他活動間分攤方式之合理性及適宜性。
三、會計處理之一致性。
四、決定各參與人對無形資產之貢獻價值所使用資料及假設之可信賴程度。
受控交易參與人及其所從事之營業活動，與非關係人及其所從事相同或類似之營業活動間，如存在前項第一款至第三款因素之差異，應就該等差異之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。
合併營業利潤之分配，依下列步驟辦理：
一、按例行性貢獻分配例行性利潤：
（一）以合併營業利潤為基礎，依各參與人從事相關營業活動之例行性貢獻，分配其應得之市場公平報酬。
（二）所稱例行性貢獻，指非關係人對於相同或類似營業活動之貢獻，其以可資辨識市場公平報酬之營業活動為基礎。
（三）計算例行性利潤時，應進行功能分析，依各參與人執行之功能、承擔之風險及使用之資產，確認其從事相關營業活動應分配之市場公平報酬。
市場公平報酬，得參照前五條規定之方法決定之。
二、按對無形資產之貢獻分配剩餘利潤：合併營業利潤減除依前款規定分配予各參與人之例行性利潤後，以其餘額按各參與人於相關營業活動中對於無形資產之貢獻價值，計算其應分配之剩餘利潤。
無形資產之貢獻價值，得以外部市場公平報酬，或無形資產之開發及所有相關改良、更新之資本化成本減除適當攤銷後之餘額為衡量標準。
評估利潤分割法之適用性時，應考量第八條第一項規定之因素，尤應特別考量下列因素：
一、決定例行性貢獻市場公平報酬之方法所應考量之因素，包括執行之功能、承擔之風險及使用之資產。
二、成本、費用、所得及資產，於相關營業活動及其他活動間分攤方式之合理性及適宜性。
三、會計處理之一致性。
四、決定各參與人對無形資產之貢獻價值所使用資料及假設之可信賴程度。
受控交易參與人及其所從事之營業活動，與非關係人及其所從事相同或類似之營業活動間，如存在前項第一款至第三款因素之差異，應就該等差異之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。