Enforcement Rules of Act for Establishment and Administration of Science Parks Article 14

Tax benefits enjoyable by a distinct science-based enterprise before its involvement in a corporate merger/consolidation project which have yet to expire or be fully offset shall include the tax benefits enjoyable by the said extinct industry before December 31, 1999 in accordance with the Act or other applicable laws and regulations.If, after completion of a merger/consolidation project, the surviving or the newly established science-based enterprise succeeds, in accordance with the provisions of Paragraph One, Article 21 of the Act, to the tax benefits enjoyable by the extinct science-based enterprise, a separate account book with respect to the assets and business of the extinct science-based enterprise shall be established and be used as the basis for calculating the actual creditable sales income of or taxes payable for the products or services independently manufactured or provided by the extinct science-based enterprise.The account book established under the preceding Paragraph shall contain full information and independent calculations of the sales, the cost of sales and the gross profit earned by the distinct science-based enterprise. Beside, respective accurate and reasonable shares of the administration fee and non-operating profit and loss originally contributable by the extinct science-based enterprise should also be revealed.