If the total R&D expenditure invested by a private institution participating in a major infrastructure project in the same taxable year exceeds NT$1,500,000, or exceeds 2% of its net business revenue, 20% thereof may be credited against its profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable for the current year is less than the creditable amount, the balance of such creditable amount may be credited against profit-seeking enterprise income tax payable in the ensuing four years.
The term “R&D expenditure” as used in the preceding paragraph includes the following expenses for research or improvement of construction or operation techniques:

1.Salary for full-time personnel of R&D units specializing in R&D tasks. 
2.Expenses on research or improvement of construction or operation techniques spent by construction or operation units.
3.Expenses on consumable items, raw materials and samples used by R&D units for which complete purchase and requisition records are maintained and which can be cross-checked with research projects, records, or reports.
4.Cost for procurement of new instruments and equipment for research purposes exclusively provided to R&D units.
5.Depreciation or rents of buildings exclusively used by R&D units.
6.Amounts amortized or paid in the current year for patents, know-how, and copyrights purchased or used exclusively for R&D purposes.
7.Expenses on research entrusted to local universities, colleges or research institutions, or hiring full-time specialists at local universities or colleges or researchers at local research institutions.
8.Expenses on research entrusted to foreign universities, colleges or research institutions, or appointment of full-time instructors from foreign universities or colleges or researchers from foreign research institutions approved by the central competent authority in charge of specific enterprises and the Ministry of Finance.
9.Other expenditures approved, on a case by case basis, for R&D purposes by the central competent authority in charge of specific enterprises and the Ministry of Finance.
The research institutions as referred to in Subparagraph 7 of the preceding paragraph shall include research institutions of the government, teaching hospitals or foundations and associations specializing in research as approved by and registered with the government, and research institutions under such foundations and associations.