Regulations Governing Application of Tax Credit to Profit-seeking Enterprise Shareholders of Private Institutions with Respect to Investments Made in Major Infrastructure Projects
The terms as used in these Regulations shall be defined as follows:
1.“Credit against profit-seeking enterprise income tax payable for the current year” shall mean credit against tax payable calculated by multiplying applicable tax rate for business income in the current year as appraised and determined by the tax collection authority, and credit against additional tax payable calculated by applying 10% on the undistributed earnings for the previous year as appraised and determined by the tax collection authority.
2.“Share certificates subscribed on their initial issue” shall mean share certificates subscribed in cash by promoters at the time of incorporation, or additional shares subscribed in cash by shareholders upon expansion through capital increase.
3.“Share certificates underwritten” shall mean shares underwritten at the time of public offering for incorporation or expansion and share certificates purchased during the underwriting period. In the case of a capital increase made after a capital reduction, unless the capital reduction is intended entirely to make up for losses, the amount of capital increase shall be higher than the amount of capital deduction other than making up for the losses.
4.“Incorporation” shall mean the registration of a company has been duly completed after the commencement date of enforcement of the Act.
5.“Expansion” shall mean alternation registration for capital increase has been duly completed after the commencement date of enforcement of the Act.
6.“Share certificates subscribed or underwritten which have been held for a period over four years” shall refer to cases where a profit-seeking enterprise shareholder has been in possession of such registered share certificates for a period of over four consecutive years from the date of payment of the share price.
7.“The current year” shall mean the fifth year in which the registered share certificates subscribed or underwritten have been in the continuous possession of the shareholder.