BUSINESS MERGERS AND ACQUISITIONS ACT Article 40-1

Intangible assets obtained by a company through merger/consolidation, division, or acquisition of business or property as provided in Articles 27 or 28 of this Act, which are identifiable and can be controlled by a company with future economic benefits and whose amount can be measured, may be the actual acquisition cost and be amortized evenly in a certain period of time.Intangible assets in the preceding Paragraph refer only to business rights, copyrights, trademark rights, patents, integrated circuit layout rights, plant variety rights, fishing rights, mining rights, water rights, trade secrets, computer software and other franchises.A certain period of time for amortization of intangible assets in Paragraph 1 shall be calculated on the basis of the following Subparagraphs:1.Business rights shall be based on a period of ten years, and copyrights shall be based on a period of fifteen years. However, after the merger, division, or acquisition of a company, the remaining statutory period of enjoyment shall apply when less than above periods;2.The intangible assets other than those mentioned in the preceding Paragraph shall be calculated based on the remaining legal years of enjoyment after the merger, division or acquisition of a company; where the law does not specify the number of years of enjoyment, it shall be calculated as ten years.If the tax collection authority has concerns about identifying the trade secrets in Paragraph 2 during the investigation, it may request opinions from the central competent authority of the surviving or newly incorporated company after the merger/consolidation, the existing or newly incorporated company after the division, or an acquisition company.