Sports Industry Development Act Article 26-2

In order to boost the development of the professional sports industry, the amateur sports industry, and major sports competitions, the central competent authority may set up a dedicated bank account to handle matters related to donations made by profit-seeking enterprises.If a profit-seeking enterprise makes a donation to a professional or amateur sports industry approved by the central competent authority through the dedicated bank account referred to in the preceding paragraph, when that enterprise files its income tax return, it may list a donation amount of up to a maximum of NT$10 million, and 175 percent of that donated amount will be deducted from the profit-seeking enterprise’s income for that year. If, however, the profit-seeking enterprise and a professional or amateur sports industry that receives a donation are personally related parties, only 100 percent of any donated amount within the limit mentioned above may be deducted from the profit-seeking enterprise’s income that year.If a profit-seeking enterprise makes a donation through the dedicated bank account referred to in Paragraph 1 to a major professional or amateur sports industry that has been approved by the central competent authority on a case by case basis, or to the organizer of a major sports competition announced by the central competent agency, when that profit-seeking enterprise files its income tax return, it may list the full amount of the donation, and 175 percent of the full donated amount may be deducted from the profit-seeking enterprise’s income for that year and it is not subject to the NT$10 million limit or to the caveat referred to in the preceding paragraph.The amount of accumulated funds in the dedicated bank account set up by the central competent authority in accordance with the provisions of Paragraph 1 to accept donations from profit-seeking enterprises in accordance with the provisions of Paragraph 2 is not permitted to exceed NT$3 billion each year, and from within this limit, the central competent authority may designate maximum donations that different categories of sports and recipients are permitted to receive.The directions governing the setting up of the bank account referred to in Paragraph 1, cash flow of money to and from the account, its custodian, use, allocation, audits and supervision; the approval of the professional and amateur sports industries referred to in Paragraph 2, the use of the donations received, the scope of personal relationships between parties, (tax) deduction method, and documentary evidence that must be submitted; the criteria and scope for the approval of a major professional or amateur sports industry on a case by case basis referred to in Paragraph 3, and the categories of sport and recipients that are permitted to receive donations referred to in the preceding paragraph, and the maximum donations, and regulations governing other related matters shall be prescribed by the central competent authority in conjunction with the Ministry of Finance.The implementation period for the amendments to Paragraphs 2 and 3 made on July 8, 2025, during which deductions may be made from the taxable income of profit-seeking enterprises, shall be from the date when the amendments take effect until December 23, 2031.