The Regulations Governing Application of Investment Tax Credits to Private Institutions Participating in Public Infrastructure Projects
If any equipment or technology, or instruments/equipment for research purposes exclusively provided to R&D units, with respect to which credit against profit-seeking enterprise income tax has been applied under these Regulations, fall under one of the following conditions, the institution concerned shall pay to the tax collection authority the credited profit-seeking enterprise income tax, plus interest to be calculated on a daily basis at the fixed interest rate of postal savings for a one-year time deposit from the date after the deadline for filing the tax return for the current year to the date of supplemental payment of such tax:
1.If the equipment or technologies can not be completely installed or used before the scheduled date, and no application for extension of time limit, with proper reason indicated, is filed with the authority in charge of the major infrastructure projects and forwarded in due process to the tax collection authority before the deadline.
2.If any equipment or technology is sublet, leased, resold, returned, auctioned, stolen, reported unserviceable, recalled by others according to Regulations, or its original purposes changed within three years from the date after the delivery date.
3.If any instrument or equipment for research purposes exclusively provided to R&D units is sublet, leased, resold, returned, auctioned, stolen, reported unserviceable, recalled by others according to Regulations, or not exclusively used by R&D units within three years from the date after the delivery date.
If the instrument or equipment is declared unserviceable as referred to in Subparagraphs 2 and 3 of the preceding paragraph due to force majeure such as earthquakes, storms, floods, droughts, plagues of insects, fires, wars, etc., the institution concerned shall pay to the tax collection authority the credited profit-seeking enterprise income tax, plus interest in the above-mentioned paragraph shall not apply.
With regard to equipment, technology, or instruments mentioned in Subparagraphs 2 and 3 of Paragraph 1 declared to be unserviceable due to force majeure events, a checklist of losses with supporting documents shall be submitted within 30 days after such occurrences to the tax collection authority which may then send its staff to conduct investigation. Where the private institution fails to report to the tax collection authority within the period prescribed to request that the aforesaid office conduct an investigation but is able to prove that its losses sustained in the disaster are true by providing sufficient documents, the tax collection authority shall verify the losses by checking such documents.
A company where by assignment or merger/consolidation as provided in Articles 10 and 15 of the Statute for Upgrading Industries, or by merger/consolidation, division or acquisition as provided in Article 37 of the Business Mergers and Acquisitions Act, applies for transferring the profit-seeking enterprise income tax credit for equipment and technology to the assignee company, the surviving company or the newly incorporated company after the merger/consolidation, the existing company or the newly incorporated company after the division or the company of acquisition, such transferring of equipment or technology is excluded from the application of Paragraph 1 for the first-mentioned company to pay additional profit-seeking enterprise income tax plus interest.