The Regulations Governing Application of Investment Tax Credits to Private Institutions Participating in Public Infrastructure Projects
If the total personnel training expenditure invested by a private institution participating in a major infrastructure project in the same taxable year exceeds NT$300,000, 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 “personnel training expenditure” as used in the preceding paragraph shall mean the following expenses paid by a private institution for training to enable its employees to undertake the participation in a major infrastructure project, or for conducting training programs related to its business, or assigning its employees to participate in such programs:
1.Instructors’ fees and travel expenses;
2.Trainees’ travel expenses, and charges paid to training units;
3.Expenses for training materials, materials for practice, stationery, medical care, insurance, training emulation, books/magazines, board during training periods, training sites and training equipment with a service life of less than two years;
4.Technique evaluation charges;
5.Depreciation and rents of buildings at which occupational training institutions registered with and recognized by the Council of Labor Affairs of the Executive Yuan are situated, and salaries of personnel in charge of educational training; and
6.Other expenditures for personnel training approved by the central competent authority in charge of specific enterprises and the Ministry of Finance.
If an entity is commissioned to conduct training for another entity, the depreciation, rents and salaries as referred to in Subparagraph 5 of the preceding paragraph shall be deducted in a proportion to the number of trainees from such other entity and number of days of the entire training period, and the deducted amount shall not be eligible for application of tax credit. Such depreciation and rents shall be calculated according to the proportion of the area actually used for such training.
The term “conducting” as referred to in Paragraph 2 includes training conducted by a company itself, commissioning of a third party to do so, and jointly conducting training with other institutions or related entities, in the meantime, jointly assigning employees or members of the companies, the institutions and/or the related entities to join such programs.