Regulations Governing Tax Credit for Businesses Investing in Motion Picture Production Enterprises for the Production of Domestically Produced Motion Pictures Article 5

A sizable motion picture production enterprise as mentioned in Paragraph 1 of Article 39-1 of the Act refers to one that uses at least NT$30 million of its paid-in capital or paid-in capital increase for the production of domestically produced motion pictures.A domestically produced motion picture as mentioned in the preceding paragraph shall meet the standards provided for in Paragraph 2 of Article 2 of the Act.The payment for paid-in capital or paid-in capital increase mentioned in Paragraph 1 may be made or collected in installments during the approved period of the domestically produced motion picture investment and production plan. Payment of production expenditures for a domestically produced motion picture in the case of a newly established enterprise shall be made only after the articles of incorporation have been drawn up during a promoters’ meeting. In the case of capitalization increase, payment shall be made only after the passage of a resolution approving capitalization increase by a meeting of shareholders or the board of directors.In the case of a capitalization increase made after a capitalization reduction, the amount of paid-in capital increase mentioned in Paragraph 1 shall equal the remainder of total capital increase after deducting the capital reduction unless the increase is intended entirely to make up for losses.