Statute for Encouragement of Private Participation in Transportation Infrastructure Projects Article 29

A private entity encouraged under this Statute may credit 5% to 20% of the amount of the following expenditures against the business income tax payable for the then current year. In case the amount of business income tax payable for the then current year is less than the amount of creditable expenditures, the balance of such creditable amount may be credited against the amount of business income tax payable for the four(4) ensuing years:1.Capital expenditures invested in building, operation equipment or technology.2.Capital expenditures invested in procurement of pollution control equipment or technology.3.Capital expenditures invested in research and development, and personnel training.4.Other investment expenditures as approved by the Executive Yuan.The total amount of investment tax credit against payable income tax in each year referred to in the preceding Paragraph shall be limited to the amount not exceeding 50% of the business income tax payable for the then current year; provided, however, that this limitation shall not apply to the creditable amount in the last year of said four-year period.The scope of application of the items of investment credit referred to in Paragraph 1, the period of implementing the investment credit incentive and the rates of investment credit against tax shall be determined by MOF through consultation with MOTC and submitted to the Executive Yuan for approval.