Regulations Governing Application of Profit-seeking Enterprise Income Tax Exemption to Private Institutions Participating in Transportation and Communication Infrastructure Projects
The profit-seeking enterprise income tax exemption to private institutions participating in transportation and communication infrastructure projects is applicable only to the following listed incomes (see attached detailed items) derived from operating transportation and communication infrastructure projects; it is not applicable to income derived from other subordinate business which is incidental to the operation of such projects:
1. Railroad transport: ticket fare income for passenger transit and transportation charge income for cargoes.
2. Road construction: toll income.
3. Mass rapid transit system: ticket fare income for passenger transit.
4. Airport: service income.
5. Ports and their facilities: income from port affairs services and income from stevedoring and warehousing services.
6. Parking lot: parking fee income.
7. Major facilities for tourism and recreation: service income.
8. Bridge and tunnel: toll income.
Where purchase of machinery and equipment is required for the operation of the above-mentioned transportation and communication infrastructure projects, for the purpose of applying these Regulations, the machinery and equipment so purchased shall be brand new. However, the above restriction shall not apply, if due to practiced conditions, approval is given, on a case-by-case basis, by the competent authority after consulting with the Ministry of Finance, to import from abroad; or if in a case where the whole or one part of the infrastructure is transferred under the provisions of Paragraph 2, Article 6 of the Act after the construction is completed by the government.