If the transactions undertaken by a profit-seeking enterprise with related parties satisfy the following criteria, the enterprise may file an application for an advance pricing arrangement with the collection authority-in-charge pursuant to the provisions set out in this Chapter:

1. 

In order to apply for advance pricing arrangements, the total amount of the transactions shall be no less than NT$500 million; or, the annual amount of such transactions is no less than NT$200 million;

2. 

No significant tax evasions were committed in the past three years;

3. 

Documentation as required under Subparagraphs 1 to 3 and Subparagraphs 5 to 9, Paragraph 1 of Article 24 has been well-prepared;

4. 

Preparation of a Transfer Pricing report as prescribed under Subparagraph 4, Paragraph 1 of Article 24 has been completed; and

5. 

Other criteria approved by the MOF.

The profit-seeking enterprises which apply for the advance pricing arrangement (hereinafter referred to as the "Applicants") should file the application pursuant to the format with the collection authority-in-charge before the end of the first fiscal year in which the transactions prescribed in Subparagraph 1 of the preceding paragraph occurred. In situations where more than one Applicant is involved, one of the Applicants shall be designated to file the application (on their behalf). The collection authorities-in-charge shall notify the Applicant whether to accept the application within one month of its receipt of the application in writing. With respect to an accepted application, the Applicant shall supplement the documents and reports set forth in Subparagraphs 3 and 4 of the preceding paragraph within three months of the service of the written notice of acceptance.

The prescribed format of the application shall specify the following:

1. 

Name, government uniform invoice (“GUI”) number or identification number, and address of the Applicant and its agents;

2. 

Original power of attorney shall be attached if the application is made and filed through an agent;

3. 

Brief description of the transaction being applied for advance pricing arrangement;

4. 

Total amount or annual amount of the transactions being applied for advance pricing arrangement;

5. 

Whether the documents and reports prescribed in Subparagraph 3 and 4, Paragraph 1 of this Article have been fully prepared;

6. 

Whether in past years the Applicants have ever been subject to investigation on their Non-Arm's-length transactions conducted by the collection authorities-in-charge; and

7. 

Other information required.

Before filing an advance pricing arrangement in accordance with Paragraph 1, a profit-seeking enterprise may prepare the following information to file a written application of the pre-filing meeting three months prior to the end of the first fiscal year covered by the transaction of Subparagraph 1 of Paragraph 1, to let collection authorities-in-charge assess whether to agree to the application.

1. 

The application period of the advance pricing arrangement.

2. 

The global organization structure of the group.

3. 

Main business scope of the enterprise.

4. 

The related parties, the type of Controlled Transactions, and an explanation of the functions and risks.

5. 

Reasons of the application for the advance pricing arrangement.

6. 

Other necessary explanations.

The collection authorities-in-charge shall complete the aforementioned pre-filing meeting within three months after the application, and notify the applicant in writing about the result. Taxpayers shall prepare the documents and reports in accordance with Subparagraphs 3 and 4 of Paragraph 1 with the format of the application in accordance with Paragraph 2, to apply for the advance pricing arrangement to the collection authority-in-charge within three months after receiving the notification.

If an Applicant fails to provide related documents and reports within the time limit prescribed in Paragraph 2 or 5, the collection authority-in-charge may reject or refuse its application for advance pricing arrangement.

If the profit-seeking enterprises apply for a cross-border advance pricing arrangement or multilateral advance pricing arrangement, they shall apply to our competent authority in accordance with the applicable tax treaty and the related laws to proceed the mutual agreement procedure with the competent authority of the contracting state.