Regulations Governing Profit-seeking Enterprise Income Tax Exemption for Profit-seeking Enterprises Conducting Procurement and/or Importation and/or Storage and/or Delivery of Goods in Free Trade Zones｜第 4 條｜港務｜Regulation｜In Force
第 二 章｜交通部｜v1.0
Last Amended: 2019-10-09
The preparatory or auxiliary business activities of profit-seeking enterprises within the territory of the ROC, specified in Paragraph 1 of the preceding Article, are reviewed in accordance with the following provisions: 1)A profit-seeking enterprise, established or registered under overseas law, is deemed as only undertaking preparatory or auxiliary business activities within the territory of the ROC. However, it is not applicable if the activities reviewed by the FTZ management authority fall under one of the following conditions: A.The place of effective management is within the territory of the ROC. B.All major business activities take place within the territory of the ROC. C.A part of business activities occurs via a fixed place of business within the territory of the ROC, beyond the preparatory or auxiliary nature. 2)A profit-seeking enterprise, established or registered under the laws of the ROC, is deemed as undertaking business activities within the territory of the ROC beyond the preparatory or auxiliary nature. However, if the profit-seeking enterprise could provide evidence, which shall be reviewed by the FTZ management authority and proves that the place of effective management is outside the territory of the ROC and is not under the conditions prescribed in Items 2 and 3 of the preceding Subparagraph, it shall not be subject to the former clause. The activities within the preparatory or auxiliary nature in Item 3 of Subparagraph 1 of the preceding Paragraph refer to the business activities of the profit-seeking enterprise within the territory of the ROC (including the functions performed, the risks assumed, and the assets used) and are considered not to be the core, necessity, and importance of the overall domestic and overseas business activities. When the FTZ management authority reviews the activities based on the preceding two paragraphs, it may consult the central competent authorities for business objectives of each industry or the local tax collection authority.