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Article　2　

Profit-seeking enterprises or individuals obligated to pay income tax
under the Act shall, when filing the income tax return, calculate the
amount of the income basic tax in accordance with the provisions set out
in the Act and shall file the income tax return in the format as
prescribed by the Ministry of Finance and shall pay the income tax
accordingly.

With respect to a profit-seeking enterprise or an individual person
failing to declare the amount of its/his/her income basic tax as required
in the preceding paragraph, the tax collection authority shall assess and
determine the amount of its/his/her basic income and the income basic tax
levied thereon based on the information acquired by it through
investigation.

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Article　3　

Article 3
The statutory tax benefit in terms of "investment credit" referred to in
Subparagraphs 7 and 8, Paragraph 1, Article 3; Paragraph 2, Article 4;
and Articles 6 and 11 of the Act shall mean those investment credit
privileges as provided for in the following laws:
1. Articles 6, 7, 8, and 15 of the abolished Statute for Upgrading
Industries;
2. Articles 29 and 33 of the Statute for Encouraging Private
Organizations to Participate in Transportation Construction;
3. Articles 37 and 40 of the Act for Promotion of Private Participation
in Infrastructure Projects;
4. Article 37 of the Business Mergers And Acquisitions Act;
5. Articles 14 and 24 of the New Town Development Act;
6. Article 49 of the Urban Renewal Act;
7. Article 23 of the Resource Recycling Act;
8. Article 50 of the Act for the Development of Tourism;
9. Article 39-1 of the Motion Picture Act;
10. Article 18 of the Act for Establishment and Administration of Science
Parks; and Article 15 of the Act for Establishment and Administration of
Science Parks in force before its amendment and promulgation on 20
January 2001;
11. Article 42 of the Interim Statute for Reconstruction after the 921
Earthquake; and Article 41 of the abolished Interim Statute for
Reconstruction after the 921 Earthquake prior to its amendment and
promulgation on 29 November 2000;
12. Article 10 of the Act for Industrial Innovation.
13. Articles 5 and 6 of the Act for the Development of Biotech and New
Pharmaceuticals Industry.
14. Other laws containing the provisions governing grant of investment
credit incentives.

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Article　4　

In regard to the condition in terms of “without having applied the
investment credit incentive” as set forth in Subparagraphs 7 and 8,
Paragraph 1, Article 3 of the Act, it shall refer to the case where a
profit-seeking enterprise or an individual taxpayer has not made any
income tax deduction by applying for the investment credit incentive
provided for in the preceding article when calculating the amount of
income tax payable by it in the process of preparing its annual account
settlement statements and filing its income tax return for the current
year, exclusive of the amount of income tax deductible by the said profit-
seeking enterprise through application of the provisions of the
investment credit incentive under any relevant governing law against the
income tax additionally assessed on the undistributed surplus earnings
retained in the previous tax year as calculated in accordance with the
provisions set out in Article 102-2 of the Income Tax Act.

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Article　5　

The term “the taxable income as calculated in accordance with the provisions
of the Income Tax Act ” referred to in Paragraph 1, Article 7 of the Act
shall mean the aggregate amount of the taxable income as calculated in
accordance with Article 24 or Article 41 of the Income Tax Act minus
the amount of incomes in respect of which assessment, or payment of
the profit-seeking enterprise income tax is stopped or exempted
pursuant to the provisions set out in the Income Tax Act and other
laws and the amount of income after having deducted its business
operation loss incurred in the preceding years as specified in
Article 39 of the Income Tax Act.
When calculating the amount of taxable income set forth in the
preceding paragraph, except for the amount of the incomes exempt
from assessment and/or payment of profit-seeking enterprise income
tax under the Income Tax Act and the Offshore Banking Act
that are required to be deducted first, the amount of incomes which are
exemptible from assessment or payment of profit-seeking enterprises
income tax under other laws and the amount of business operation
losses incurred in preceding years which are deductible in accordance
with the relevant provisions of other laws, and the sequential order
for deductions under the provisions set out in Article 39 of the
Income Tax Act shall be selected and determined by the said profit-
seeking enterprise at its own discretion when filing its annual
income tax return.
The formula for use by a profit-seeking enterprise to calculate the amount
of its basic income in accordance with the provisions set out
in Article 7 of the Act is hereby given as follows:
Basic Income Amount = Taxable Income + (the Income Amount as set
forth in Subparagraph 1, Paragraph 1, Article 7 of the Act – the
Loss as set forth in Paragraph 2, Article 7 of the Act) + the
Amount of the Incomes as set forth in Subparagraphs 2 to 8,
Paragraph 1, Article 7 of the Act ＋ (the Income Amount set forth
in Subparagraph 9, Paragraph 1, Article 7 of the Act – the Loss
as set forth in Paragraph 2, Article 7 of the Act) + (the Income
Amount as set forth in Subparagraph 10, Paragraph 1, Article 7
of the Act – the Loss as set forth in Paragraph 4, Article 7 of
the Act)
If after the amounts of the additional taxable income set forth
in Subparagraphs 1, 9, and 10, Paragraph 1, Article 7 of the Act
and the amount of the income of each category in the current year
have been added into the calculation formula set forth in the
preceding paragraph and the profit-seeking enterprise has
subtracted the losses of the same category, respectively, and
the amount of the balance after subtracting such losses is
positive, such enterprise shall add such balance into the
calculation of the formula in the preceding paragraph, and,
in the case that the balance is negative, such amount shall
be excluded from the above calculation, and Paragraph 2,
Article7 of the Act shall apply.
If the balance of the preceding paragraph is positive and the
losses of the previous year set forth in Paragraphs 2 to 4,
Article 7 of the Act have been subtracted, respectively, and
the amount of the balance is a negative figure, then such
negative figure shall be excluded from the calculation; and,
moreover, at the time of subtracting the losses of the previous
year from the amount of income, the sequential order for the
year of the occurrence of a loss shall be offset against income
of the same category year by year in sequence.
When the profit-seeking enterprise calculates the amount of the
additional income set forth in Subparagraph 1, Paragraph 1,
Article 7 of the Act, if there is income derived from stock
transactions as prescribed in Paragraph 3, Article 7 of the
Act, the following provisions shall apply:
1. The income derived from stock transactions set forth in
Paragraph 3, Article 7 of the Act with deduction of the losses
derived from stock transactions in the current year performed
under the provisions of the aforesaid paragraph and article,
the income or losses derived from securities transactions except
for stocks set forth in Article 4-1 of the Income Tax Act, and
the income or losses derived from futures transactions set forth
in Article 4-2 of the same Act shall be combined.
2. After the calculation of the total amount of income or losses
according to the previous subparagraph, if the balance is negative,
then such negative amount shall be excluded from the calculation
of the basic income amount and, in accordance with Paragraph 2,
Article 7 of the Act, such negative amount shall be deducted from
the positive balance following the calculation made in accordance
with the preceding Subparagraph 1 from any ensuing years.
3. After the calculation of the combined amounts according to
Subparagraph 1 above, if the balance is positive, the profit-seeking
enterprise may, in accordance with Paragraph 2, Article 7 of the
Act, deduct the negative balance of the previous year as calculated
according to the preceding subparagraph. If, after the deduction of
such negative balance from the positive balance of the previous
year, the balance is positive, and, the calculation of the balance
(negative balance counted as zero) is made in accordance with
Paragraph 3, Article 7 of the Act that for income derived from
stock transactions in the current year minus losses from stock
transactions in the current year, only one-half of the amount
of such balance shall be added into the calculation of the basic
income amount, in addition to the amounts accruing in full from
the other two types of transactions given in the first subparagraph
above, to give the combined total as described in the first
subparagraph. However, if, after the deduction of such negative
balance, the balance is still negative, such negative amount
shall be excluded from the calculation.
Paragraph 3, Article 7 of the Act provides that the calculation of
the holding period shall be made according to the first-in first-out method.
In case any income added to the taxable income in the formula set
forth in the third Paragraph of this Article is derived from a
source outside the territory of the ROC and in respect of which
the income tax paid under the tax law of the source income country
where the income is derived, the taxpayer may, after having obtained
a tax payment certificate issued in the same tax year by the tax
authority of the source income country where the income was derived,
and having the certificate duly authenticated by the ROC embassy or
consulate, or other authenticating institution acceptable to the ROC
Government and located in the foreign place where such income was
derived, subtract such offshore income from the amount from the
balance calculated in accordance with Paragraph 1, Article 4 of
the Act.
The maximum amount of the offshore income deductibles under the
preceding paragraph shall be calculated in accordance with the following formula:
Maximum Amount of the Deductible Offshore Income = (the Amount of
Basic Income Tax set forth in Paragraph 1 of Article 12 – the Amount
of Taxable Income as calculated in accordance with the Income Tax Act)
× the Amount of the Tax-Free Offshore Income that should be added
into the amount of the Basic Income in accordance with Paragraph 1,
Article 7 of the Act ÷ (the amount of Tax-Free Onshore Income and the
Tax-free Offshore Income that should be added into the Amount of the
Basic Income in accordance with Paragraph 1, Article 7 of the Act.

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Article　6　

With respect to the securities transaction income received by a profit-
seeking enterprise from the selling of the shares (stocks) of companies
not listed on the Taiwan Stock Exchange (TSE), and/or not traded through
Over-the-Counter (“OTC”) securities market, and/or the shares (stocks) of
emerging companies traded through Over-the-Counter (“OTC”) securities
market pursuant to Subparagraph 1, Paragraph 1, Article 7 of the Act, if
the selling price thereof is obviously lower than the current price of
such stocks at the time of transaction, the current price shall be taken
as the selling price of such stocks, unless a due cause and the
evidentiary document/certificate of such low selling price have been
submitted by the said profit-seeking enterprise and have been duly
verified by the competent authority concerned.

The current price referred to in the preceding paragraph shall be
determined by making reference to the transaction prices of such stocks
sold at the same time and to a corresponding number of such stocks; but
if such reference transaction price is not available, then the net value
of each share as calculated based on the net assets value of the issuing
company on the transaction day shall be taken as the current price of
such stocks.

The same period as set forth in the preceding paragraph shall refer to
the period of 30 days prior to the transaction date of such stocks; and
the corresponding numbers of stocks sold shall be ranging from 50 percent
to 150 percent of the total number of such stocks actually sold. When
there is more than one reference for current price(s), the average amount
of such current price(s) shall be adopted.

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Article　7　

With respect to the securities transaction income referred to in
Subparagraph 1, Paragraph 1, Article 7 of the Act, the method for
estimating the transaction cost incurred from such transaction shall be
identical with the calculation method adopted under Article 44 and
Article 48 of the Income Tax Act and under Article 46 of the Enforcement
Rules of the Income Tax Act.

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Article　8　

With respect to the futures transaction income referred to in
Subparagraph 1, Paragraph 1, Article 7 of the Statute, the transaction
cost incurred shall be calculated by using the FIFO (First In and First
Out) method. However, for any future sales which must be liquidated
before the due date, the transaction cost to be incurred therefrom may be
estimated and determined using the specific identification method.

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Article　9　

When calculating the securities transaction income of a profit-seeking
enterprise under the provisions set out in Subparagraph 1, Article 7 of
the Act, except for the attributable operating expenses and loan
interests which may be attributed separately to applicable accounts for
book-keeping purposes, all other expenses and interests amortized to the
sale of negotiable securities while calculating the transaction cost
under the relevant provisions set out in the Income Tax Act may be
deducted from the business income derived from the selling of such
negotiable securities.

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Article　10　

Where a profit-seeking enterprise has, in accordance with the provisions
set out in Article 49 of the Financial Holding Company Act or in
Article 40 of the Business Mergers and Acquisitions Act, elected to
name the financial holding company or the parent company after the
merger or acquisition to act as the taxpayer for the filing of a
combined profit- seeking enterprise income tax return, the amount
of its basic income to be declared in the said combined profit-seeking
enterprise income tax return shall be the sum of the amount of the
combined taxable income as calculated in accordance with the provisions
set out in the Income Tax Act plus the aggregate amount of the
additional incomes of each of the companies involved in the combined
income tax return as indicated in Subparagraphs under Paragraph 1,
Article 7 of the Act.
For the companies specified in the preceding paragraph that choose the
financial holding company or the parent company after merger or
acquisition to act as the tax payer to file a combined profit-seeking
enterprise income tax return, and if there is any loss occurred after
the effective date of the Act in connection with the amount of the
additional incomes specified in Subparagraphs 1, 9, and 10, Paragraph
1, Article 7 of the Act as declared by them, and if such loss has been
confirmed by the collection authority, then the deduction of such loss
shall be effected in accordance with the following provisions:
1. Prior to filing the combined declaration, the loss which is incurred
after the effective date of the Act in connection with the additional
income(s) added by each of the foregoing companies in accordance with
Subparagraphs 1, 9, and 10, Paragraph 1, Article 7 of the Act and has
been confirmed by the collection authority but has not yet been
subtracted may be subtracted by the order of the year of the
occurrence of a loss from the current-year income specified in each
of the above mentioned Subparagraphs within five years after the year
in which such loss was incurred by the individual companies. If the
balance is negative after the subtraction, the negative balance shall
not be included in the income amount.
2. From the year in which the combined profit-seeking enterprise income
tax return is filed, the loss which is incurred after the effective
date of the Act in connection with the additional income(s) added by
each of the foregoing companies in accordance with Subparagraphs 1, 9,
and 10, Paragraph 1, Article 7 of the Act and has (have) been confirmed
by the collection authority may be subtracted by the order of the year
of the occurrence of a loss from the current- year income specified in
each of the above mentioned Subparagraphs within five years after the
year in which the loss was incurred by the financial holding company
or the parent company after merger or acquisition. If the balance is
negative after the subtraction, the negative balance shall not be
included in the amount of income.
3. After the combined declaration, if any of the foregoing individual
companies elects to file individual income declaration due to the
change in its equity shareholdings, and if it has incurred any loss
in connection with any of the additional taxable incomes specified
in Subparagraphs 1, 9 and 10, Paragraph 1, Article 7 of the Act within
five years, and such loss has been confirmed as deductible loss by
the collection authority but not yet deducted, then the said individual
company filing such individual income declaration may, within five
years from the year in which the same loss incurred by all companies
involved in the combined income declaration, subtract by the order of
the year of the occurrence of a loss, on a year after year-basis and
in compliance with the provisions set out in Subparagraphs 2 to 4,
Article 7 of the Act, from its basic taxable income loss incurred by
it at a deduction rate equal to the ratio of the loss incurred by
it during each current taxation period in connection with each
individual item of such additional income to the aggregate amount of
the losses incurred by all companies in connection with the same
individual additional taxable income as declared in the combined
annual profit-seeking enterprise income tax return. After the loss
incurred by any or more individual companies filing individual income
declaration has (have) been deducted in accordance with the foregoing
provisions, the financial holding company or the parent company after
the relevant merger or acquisition process that files the combined
income declaration may keep on subtracting by the order of the year
of the occurrence of a loss the remaining sum (balance) of the
combined loss incurred by other companies in connection with each of
the additional taxable incomes specified in Subparagraphs 1, 9 and 10,
Paragraph 1, Article 7 of the Act in each taxation period during the
preceding five years duly confirmed by the collection authority as
deductible losses but not yet subtracted from the combined amount of
the basic incomes of such other companies.

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Article　11　

Where a profit-seeking enterprise which is exempted from declaring the
amount of its income basic tax according to the Act has incurred any
loss as specified in Paragraph 2, 3, or 4, Article 7 of the Act, and
such loss has been confirmed by the collection authority as a
deductible loss, such loss may be deducted from the taxable income by
the order of the year of the occurrence of a loss, within five years
from the following the year of the occurrence of such loss by the
said profit-seeking enterprise while declaring the amount of its
income basic tax.

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Article　12　

The method for calculating the amount of the income basic tax by
a profit- seeking enterprise as prescribed in Article 8 of the
Act is formulated as follows:
The Amount of Income Basic Tax = (the Amount of Basic Income –
NT$ 500,000) × tax rate
The amount of tax levied on foreign-sourced incomes under
Paragraphs 8 and 9 of Article 5 of these Rules, the retained
refundable income tax amount set forth in Article 100-1 of the
Income Tax Act, and the amount of the provisional income tax
payment not yet offset and the withholding income tax amount not
yet offset, may be deducted from the amount of income tax difference
calculated in accordance with Paragraph 1, Article 4 of the Act
when calculating the amount of payable income tax, and shall be paid
up by a profit-seeking enterprise before filing its annual income
tax return.
In the event the amount of income tax difference as calculated in
accordance with the provisions set out in Paragraph 1, Article 4
of the Act and referred to in the preceding paragraph is offset
by the provisional income tax payment and the amount of the
withholding income tax, such amount of income tax difference may be
included in the balance in the shareholder imputation tax credit
account for the then current tax year. The date of inclusion shall
be the last day of the fiscal year as prescribed in Article 23 of
the Income Tax Act.

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Article　13　

In the event a profit-seeking enterprise elects to declare the combined
business income tax in accordance with Article 49 of the Financial
Holding Company Act and Article 40 of the Business Mergers And
Acquisitions Act, the holding company filing the combined income tax
return or the parent company after the merger and acquisition shall, in
accordance with Articles 9 and 10 of the Act, pay the difference between
the ordinary income tax amount and the income basic tax amount prescribed
in Paragraph 1, Article 4 of the Act and the increased income tax amount
assessed by the competent tax authorities.

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Article　14　

The formulas to be used by an individual taxpayer for calculating his/her basic
taxable income and for calculating his/her income basic tax in
accordance with the provisions set out respectively in Articles
12 and 13 of the Act are specified as follows:
The Amount of Basic Income = Net Amount of Consolidated Income
+ (The Amounts specified in Subparagraphs 1, 2, 4, Paragraph 1,
Article 12 of the Act) + (The Amount specified in Subparagraph 3,
Paragraph 1, Article 12 of the Act – the Loss specified in Paragraph
2, Article 12 of the Act) + (The Amount prescribed in Subparagraph 6,
Paragraph 1, Article 12 of the Act – the Loss specified in Paragraph
4, Article 12 of this Act).
The Amount of Income Basic Tax = (the Amount of Basic Income –
NT$6,000,000) × 20%.
When calculating the basic taxable income using the formula specified
in the preceding paragraph, if the amount of balance resulted from
subtracting the amount of loss specified in Paragraph 2, Article 12
of the Act from the amount specified in Subparagraph 3, Paragraph 1,
Article 12 of the Act and/or the amount of balance resulting from the
subtraction of the amount of loss specified in Paragraph 4, Article 12
of the Act from the amount specified in Subparagraph 6, Paragraph 1,
Article 12 of the Act are/is of a negative figure, such negative
figure(s) shall not be included in the calculation.
For an individual taxpayer, if the amount of the income basic tax is
higher than the amount of the ordinary income tax amount, then the
amount of difference thereof as calculated under the provisions set
out in Paragraph 1, Article 4 of the Act shall be offset against the
not-yet- offset withholding tax and deductible tax when calculating
the income tax payable by him/her, and he/she shall make voluntary
payment thereof before filing his/her annual income tax return.
However, the withholding tax, with regard to the amount of income
which is not allowed to be added to the gross consolidated income,
shall not be deducted from the income tax payable.

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Article　15　

In the event the aggregate amount of income prescribed in Subparagraph 5,
Paragraph 1, Article 12 of the Act and declared by a taxpayer in any year
is less than One Million New Taiwan Dollars (NT$1,000,000), such amount
may be excluded from the annual income tax return. If the aggregated
income is greater than or equal to One Million New Taiwan Dollars
(NT$1,000,000), the total amount of such income shall be included in the
annual income tax return.

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Article　15-1　

The ceiling on the amount of tax credited in accordance with Paragraph 1,
Article 13 of the Act is calculated as follows:
The Ceiling on the Amount of Tax Credited = (the Amount of Income Basic
Tax Calculated in accordance with Paragraph 1, Article 13 of the Act –
the Amount of Income Tax Payable in accordance with the Income Tax Act) ×
[the Income in accordance with Subparagraph 1, Paragraph 1, Article 12 of
the Act] ÷ [ the sum of Amount in accordance with Subparagraphs 1 to 6,
Paragraph 1, Article 12 of the Act]

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Article　16　

The terms "life insurance" and "annuity insurance" as used in
Subparagraph 2, Paragraph 1, Article 12 of the Act shall refer to the
life insurance contracts and the annuity insurance contracts coming into
force after 1 January, 2006.

Regarding to the insurance referred to in Subparagraph 2, Paragraph 1,
Article 12 of the Act, if the aggregate amount of death insurance benefit
received by a taxpayer in a whole year is less than New Taiwan Dollar
Thirty Million (NTD30,000,000) such income shall not be included in the
amount of his/her consolidated income; whereas, if the foregoing
aggregate amount paid to the said taxpayer exceeds New Taiwan Dollar
Thirty Million (NTD30,000,000), then the portion of such insurance
benefit in excess of NTD30,000,000 shall be added in whole amount to the
aggregate amount of his/her consolidated income.

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Article　17　

(Deleted)

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Article　18　

Where a profit-seeking enterprise or an individual which is required to declare
the amount of his/her/its basic taxable income is found to have
omitted or under-reported any basic taxable income amount, thereby
resulting in any omission or under-reporting of the income basic
tax payable, the amount of tax so evaded shall be computed in
accordance with the following formula:
1. Where the ordinary income tax amount assessed by the collection
authority under the provisions set forth in the Act is higher than
or equal to the amount of the income basic tax, the provisions set
out in Article 110 of the Income Tax Act shall apply instead of
applying the provisions set out in Article 15 of the Act.
2. Where the ordinary income tax amount assessed by the collection
authority under the provisions set forth in the Act is lower than
the amount of the income basic tax, the amount of tax so evaded
shall be computed in accordance with the following formula:
(1) If the taxpayer is a profit-seeking enterprise:
A. Where the amount of the ordinary income tax assessed in respect
of the declared amount of the ordinary income is lower than the
amount of the basic income tax assessed in respect of the declared
amount of the basic income:
The Amount of Tax Evaded ＝ Total Amount of Assessed Income Basic
Tax － the Amount of the Income Basic Tax Amount Assessed in respect
of the Declared Amount of the Basic Income － the Amount of
Withholding Tax on the Amount of Omitted or Under-reported Amount
of the Income Basic Tax.
B. Where the amount of the ordinary income tax assessed in respect
of the declared amount of the ordinary income is higher than the amount
of the income basic tax assessed in respect of the declared amount of
the basic income:
The Amount of Tax Evaded ＝ Total Amount of the Assessed Income Basic
Tax － the Amount of the Ordinary Income Tax Amount Assessed in respect
of the Amount of Declared Ordinary Income － the Amount of Withholding
Tax on the Amount of Omitted or Under-reported Income Basic Tax.
C. The amount of the income basic tax assessed in respect of the
declared amount of the basic income and the total amount of the
assessed income basic tax shall be calculated in accordance with the
following formulas:
The Amount of the Income Basic Tax Assessed in respect of the Declared
Amount of the Basic Income ＝ (the Amount of the Basic Income Assessed
in respect of the Declared Amount of Such Income － NT$500,000) × tax
rate. The Total Amount of Assessed Income Basic Tax ＝ [(the Amount of
the Basic Income Assessed in respect of the Declared Amount of Such
Income ＋ the Amount of Omitted or Under-reported Taxable Basic Income)
－ NT$500,000] × tax rate.
(2) In the case of an individual taxpayer:
A. The Amount of Tax Evaded ＝ The Amount of Assessed Income Basic Tax
－ the Amount of the Income Basic Tax Assessed in respect of the Declared
Amount of the Basic Income － the Amount of Tax Refund Assessed in
respect of the Declared Amount of the Basic Income (no matter whether
the tax has been refunded or not) － the Amount of Withholding Tax and
Imputation Tax Credit on the Amount of Omitted or Under-Reported Income
Basic Tax － the Portion of the Amount of Tax Payable and Exemptible
from Fine included in the Amount of Income Basic Tax Omitted or Evaded.
B. The amount of assessed income basic tax, the amount of the income
basic tax assessed in respect of the declared amount of the basic
income and the portion of the amount of tax payable and exemptible
from fine included in the amount of income basic tax omitted or evaded
shall be calculated in accordance with the following formulas:
The Amount of Assessed Income Basic Tax ＝ [(the Amount of the Basic
Income Assessed in respect of the Declared Amount of Such Income ＋
the Amount of Omitted or Under-Reported Taxable Basic Income) －
NT$6,000,000] × 20%.
The Amount of the Income Basic Tax Assessed in respect of the Declared
Amount of the Basic Income ＝ (the Amount of the Basic Income Assessed
in respect of the Declared Amount of Such Income － NT$6,000,000) × 20%.
The Portion of the Amount of Tax Payable and Exemptible from Fine
included in the Amount of Income Basic Tax Omitted or Evaded ＝ (the
Amount of Assessed Income Basic Tax － the Amount of Income the Basic
Tax Assessed in respect of the Declared Amount of the Basic Income) ×
[the Portion of the Amount of Income Taxable and Exemptible from Fine
included in the Amount of Income Basic Tax Omitted or Evaded ÷ (the
Amount of Assessed Basic Income － the Amount of the Basic Income
Assessed in respect of the Declared Amount of Such Income)]

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Article　19　

Where a profit-seeking enterprise has conducted a merger, split-up (spin-
off), acquisition or alienation under Article 37 of the Business Mergers
And Acquisitions Act and Article 10 or Article 15 of the abolished
Statute for Upgrading Industries, each tax-exempt income not included in
the amount of the basic income under Article 16 of the Act which may be
excluded from the amount of the amount of basic income of that profit-
seeking enterprise shall remain excluded from the amount of the basic
income tax amount of that profit-seeking enterprise.

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Article　20　

The product(s) or service(s) proposed in an investment project that
remain unchanged under Paragraphs 3 and 4, Article 16 of the Act shall
include the product(s) or the service(s) proposed in an application for
the alternation of an investment project which was approved before the
promulgation of the Act by the central authority in charge of the
relevant end-enterprise and for which no additional application for a
change to the investment project as been submitted after the promulgation
of the Act.

The start-up of work as set forth in Paragraphs 3 and 4, Article 16 of
the Act shall mean the work start-up date of a plant building
construction project to be decided under applicable building construction
laws and regulations; or the date of arrival of the first batch of
production equipment at the business place or the production place, in
the cases of a new investment project or a capital increase project.

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Article　21　

The profit-seeking enterprise whose fiscal year does not begin from 1
January of each calendar year shall be subject to the application of the
provisions set out in the Act commencing from the fiscal year of 2006.

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Article　22　

These Enforcement Rules shall take effect on 1 January 2006, except for
the provisions set forth in Article 18 hereof, which shall take effect
on 1 January 2007; and the portion of the provisions requiring the
addition of the amount specified in Subparagraph 1, Paragraph 1,
Article 12 of the Act and the provisions as set out in Article 15
of the Act and Paragraph 1, 2 of Article 14 of the Act shall take
effect from the enforcement date as specified in Subparagraph 1,
Paragraph 1, Article 12 of the Act.
The amended articles of the Enforcement Rules shall take effect on
the date of promulgation. The amended provisions of Articles 5, 12
and 18 of the Enforcement Rules with the date of promulgation on 2
November 2012 shall be implemented in fiscal year 2013.