Culture and the Arts Reward and Promotion Act Article 29

Culture and arts enterprises that have been approved by the central supervisory authority to hold exhibitions and/or auctions of artifacts or artwork in the Republic of China may apply to have the central supervisory authority approve individuals’ making an income from the sale of artifacts or works of art at the event. Where the culture or arts business is the tax withholder, when payment is made to the seller, tax will be calculated as 20 percent of 6 percent of the final transaction amount. Income tax defined in related laws and regulations need not be withheld.In the preceding paragraph, within the restrictions of Article 92 of the Income Tax Act, the taxpayer shall remit withheld taxes to the national treasury, report withholding to the relevant tax-collection authority in charge and deliver a withholding statement to the seller.Where the withholder does not withhold tax as per Paragraph 1, remits the tax as per Paragraph 2, but does not report withholding and remit the withholding statement, or does not report withholding and remit the withholding statement within the time limit prescribed in Paragraph 2, the tax collection authority-in-charge shall order the taxpayer to do so by a given deadline and shall, depending on the situation, levy a fine as per Article 114 of the Income Tax Act.The scope, application and approval procedure, conditions, and other matters stemming from Paragraph 1 as well as regulations concerning withholding concerning the preceding three paragraphs shall be drafted by the central supervisory authority in cooperation with the Ministry of Finance.The regulations set out in Paragraph 1 concerning income tax on trade in approved artifacts and works of art may be in place for up to 10 years.Within six months prior to the end of the 10-year period, the Executive Yuan may, depending on the actual state of implementation, decide whether to extend the regulations. It shall then send its decision to the Legislative Yuan for deliberation.