Q：
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In order to promote reasonable business operations, Taiwan companies engage in business mergers, how to apply and limit the profit and loss balance that has not yet been offset due to the disappearance of the company after the merger?
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A：
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In the case of a company merger, if the loss and the year of reporting and deduction, the accounting books and books are complete, all use the blue declaration form referred to in Article 77 of the Income Tax Act or have been verified and certified by an accountant, and if the declaration and payment of income tax are made on time, the merger will continue after the merger. Or the newly established company may deduct the losses for each period in accordance with Article 39 of the Income Tax Act before the merger of the companies involved in the merger when filing the income tax settlement declaration of the profit-seeking enterprise. Or the amount calculated based on the proportion of the equity of the newly established company, deducted from the net profit of the current year within 10 years from the year in which the loss occurred.
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When a company merges with a foreign company, the surviving or newly established company after the merger or the branch company established by the foreign company within the territory of the Republic of China may, in accordance with the provisions of the preceding paragraph, deduct all companies participating in the merger or the branch company established by the foreign company within the territory of the Republic of China that has not been merged before the merger to deduct loss amount.
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When a company is divided, an existing or newly established company may, in accordance with the provisions of Paragraph 1, deduct the losses that have not been deducted before the division of the companies involved in the division, and the amount calculated according to the equity division ratio, from its net profit. When calculating the deductible loss of the existing company, it shall be calculated based on the proportion of the shares of the existing company held by each shareholder participating in the split company after the split.
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Q：
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In addition to the pre-repeal regulations on promoting industrial upgrading and industrial innovation regulations, what other regulations have tax incentives?
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A：
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Article 50 of the Development Tourism Regulations.
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Articles 5 and 6 of the Regulations on the Development of the Biotechnology and New Drug Industry.
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Articles 36, 37 and 40 of the Law on Promoting Private Participation in Public Construction.
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Articles 28, 29 and 33 of the Regulations on Rewarding Private Participation in Transportation Construction.
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Article 27 of the Cultural and Creative Industries Development Law.
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Article 7 of the Film Act.
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Article 25 of the Sports Industry Development Regulations.
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Article 29 of the Regulations on the Administration of the Establishment of Free Trade Port Areas.
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Article 35 of the International Airport Park Development Regulations.
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Articles 14 and 24 of the New Town Development Ordinance.
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Article 49 of the Urban Renewal Ordinance.
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Articles 35 and 36-2 of the SME Development Regulations.
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Section 51 of the Income Tax Act.
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Article 23(2) of the Resource Recovery and Reuse Act.
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Q：
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What are the tax incentives stipulated in the Taiwan Tourism Development Act?
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A：
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The tourism industry cooperates with the government to participate in various expenditures such as international tourism promotion, participation in international tourism organizations and tourism exhibitions, promotion of international conferences and conference tourism, etc., and each expenditure in the same tax year exceeds NT$100,000. 20% of the expenses incurred shall be deducted from the income tax payable to the profit-making enterprise for the current year and the following four years. (1) Those who are new investment founders shall be exempted from income tax for profit-making enterprises for 5 consecutive years from the date when their products start to be sold or when they start to provide labor services.
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Q：
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What are the tax incentives under the Taiwan Biotechnology and New Drug Industry Development Act?
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A：
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The company's research and development and personnel training expenditures in the current year meet the applicable investment deduction method for the research and development and personnel training expenditures of biotechnology and new drug companies. During the year, the profit-making enterprise income tax payable for each year shall be deducted. If the amount of expenditure exceeds the average of the previous two years, the excess may be deducted by 50%.
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The for-profit enterprise originally subscribed or applied for shares issued by the biotech new drug company and has been a registered shareholder of the company for more than 3 years, and the biotech new drug company has not applied for exemption from the subscription or subscription amount in accordance with other laws and regulations. For profit-seeking enterprise income tax or shareholder investment deduction, the amount of profit-seeking enterprise income tax payable for each year may be deducted within 5 years from the year in which the profit-making enterprise income tax is payable within 20% of the stock price.
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Q：
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What are the tax incentives in Taiwan's Law on Promoting Private Participation in Public Construction?
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A：
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If the company purchases construction and operation equipment or technology for its own use, and the total purchase amount exceeds NT$600,000 in the same tax year, the equipment part will be charged 8% of the purchase cost, and the technology part will be charged 5% of the purchase cost. For the purchase of self-use pollution prevention equipment or technology, and the total amount purchased in the same tax year exceeds NT$600,000, 13% of the purchase cost for the equipment part and 5% of the purchase cost for the technology part are offset. Reduce the amount of income tax payable to the profit-making enterprise for the current year and the following 4 years.
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If the total amount of research and development expenditure in the same tax year reaches NT$1.5 million or 2% of the net operating income, if it meets the provisions of the investment deduction method for private institutions to participate in major public construction, 20% may be applied Deduct the amount of income tax payable to the profit-making enterprise in the current year and the following four years.
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If the total amount of personnel training expenditure in the same tax year reaches NT$300,000, if it meets the provisions of the investment deduction method applicable to the participation of private institutions in major public construction, 20% of the current year and the following 4 years can be deducted the amount of income tax payable to the profit-making enterprise.
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The company may be exempted from the income tax of profit-making enterprises for a maximum of 5 years from the year in which the major public constructions involved in the operation have taxable income; From the beginning of the year, the tax-free period shall be selected within 4 years; the maximum delay period shall not exceed 3 years, and the start date of the tax-free period after the delay shall be the first day of a fiscal year.
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Registered shares issued by a for-profit enterprise originally subscribed for or applied for by a private institution participating in major public constructions due to the establishment or expansion of the shares, if the shares have been held for more than 4 years, may be deducted within the limit of 20% of the price of the shares obtained for the current year and the income tax payable to the profit-making enterprise for the next four years.
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