Act for Establishment and Administration of Science Parks Article 21

Effective from January 1, 2000, the merged science-based enterprise in accordance with domestic Company Act or surviving or new science-based enterprises after mergers shall succeed the tax benefits originally enjoyed by the dissolving science-based enterprise before mergers, which are not yet terminated nor fully offset. As for succeeding the exemption of profit-seeking income tax as investment incentives from the dissolving science-based enterprises, the surviving science-based enterprises in the scope of science-based industries under the merger/consolidation projects shall continue to produce the identical products produced or the identical services provided by the dissolving science-based enterprises and such tax benefits shall apply only to the portion of income derived from products or services independently produced or provided by the original dissolving science-based enterprises. If the tax is exempted in the manner of investment offset or deduction, such tax exemption shall apply only to the payable tax portion of the surviving or new science-based enterprises after mergers of the dissolving science-based enterprises.The provisions set out in this Article are not applicable to the affiliates defined in Paragraph Two of Article 4 of this Act.