Act for the Development of Biotech and Pharmaceutical Industry Article 6

Where a Biotech and Pharmaceutical Company invests in brand-new machinery, equipment or system, for production and manufacturing, and the total expenditure amounts to between NT$10 million and NT$1 billion spending within the same taxable year, it may select one of the following methods to offset the profit-seeking enterprise income tax payable for that taxable year. Once the Biotech and Pharmaceutical Company selects a method, it cannot be altered, and the amount of tax credit each year shall not exceed thirty percent (30%) of the profit-seeking enterprise income tax payable in the then-current year:1. Up to five percent (5%) of the annual investment amount may be credited against the profit-seeking enterprise income tax payable in the current year from the first year the Biotech and Pharmaceutical Company incurs payable profit-seeking income tax liability; and2. Up to three percent (3%) of the annual investment amount may be credited against the profit-seeking enterprise's income tax payable each year, over a period of the three years from the first year the Biotech and Pharmaceutical Company incurs profit-seeking income tax liability.Where the Biotech and Pharmaceutical Company referred to in the preceding paragraph is eligible for the investment credit under the preceding paragraph as well as other types of investment credit in the same year, the total amount creditable in that year shall not exceed fifty percent (50%) of its profit-seeking enterprise income tax payable in the then-current year, unless the then-current year is the final year for using such credit.The Biotech and Pharmaceutical Company referred to in the preceding paragraph applying for the investment credit under Paragraph 1 shall submit an investment proposal capable of generating certain benefits to the Competent Authority for approval on a case-by-case basis. Each Biotech and Pharmaceutical Company may apply for such investment credit only once per taxable year.With respect to the investment tax credit referred to in the preceding three paragraphs ,the regulations governing its scope of eligibility, investment proposal capable of generating certain benefits, application deadline, application procedure, calculation of the total creditable amount in the then-current year, and other relevant matters shall be prescribed by the Competent Authority in conjunction with the Ministry of Finance.