Article 48-7
The amount that shall be subtracted from the balance amount in the shareholder’s imputation tax credit in the same year as stated in Subparagraph 1, Paragraph 1, Article 66-4 of the Act refers to the amount of net dividends or net earnings multiplied by the tax deduction ratio as stipulated in Article 66-6 when a profit-seeking enterprise making distribution from dividend or earnings of the year 1998 or each ensuing year thereafter; and if the last figure of the amount of imputation tax credit is less than one dollar, such figure shall be rounded off.
The profit-seeking enterprise income tax payable as prescribed by Subparagraph 2, Paragraph 1, Article 66-4 of the Act in final settlement and filing includes the amount of tax payable by a profit-seeking enterprise conducting income tax final settlement and filing for the year in accordance with Article 71 of the Act, and the tax amount to be additionally levied in the calculation and filing of undistributed earnings for the year in accordance with Article 102-2 of the Act.
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Article 56
An approved small-scale profit-seeking enterprise as stated in Subparagraph 3, Article 69 of the Act refers to a profit-seeking enterprise that is small in scale, and of which the amount of sales per month is unable to reach the standard for the use of uniform invoices to investigate and levy business tax.
Those who are exempted from the profit-seeking enterprise income tax according to the Act or other related laws and regulations as stated in Subparagraph 4, Article 69 of the Act refer to education, culture, public welfare, charity institutions or organizations and their associated operating organizations, consumer cooperatives operated in accordance with law doing no business with outsiders, and state-owned public utility enterprises that are exempted from the income tax in accordance with Subparagraph 13, Subparagraph 14 and Subparagraph 19, Paragraph 1 of Article 4 of the Act, as well as all profit-seeking enterprises of which the income is exempted from profit-seeking enterprise income tax in accordance with Article 6 of the abolished Statute for the Encouragement of Investment, Article 8-1 of the abolished Statute for Upgrading Industries before its amendment and promulgation on December 31, 1999, Article 9, Article 9-2, Article 10, Article 15 and Article 70-1 of the abolished Statute for Upgrading Industries, Article 15 of the Act for Establishment and Administration of Science Parks before its amendment and promulgation on January 20, 2001, Article 18 of the Act for Establishment and Administration of Science Parks, Article 28 of the Statute for Encouraging Private Organizations to Participate in Transportation Construction, Article 40 of the abolished Interim Statute for Reconstruction after the 921 Earthquake before its amendment and promulgation on November 29, 2000, Article 36 of the Act for Promotion of Private Participation in Infrastructure Projects, Article 37 and Article 39 of the Business Mergers and Acquisitions Act, Article 13 and Article 22-7 of the Offshore Banking Act , Article 18 of the Agriculture Development Act before its amendment and promulgation on January 26, 2000, Article 35 of the International Airport Park Development Act, Article 29 of the Act for the Establishment and Management of Free Trade Zones and other laws and regulations.
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Article 60-1
Where an offshore banking unit has its head office located within the territory of the Republic of China, beside filing the tax return in accordance with Article 73-1 of the Act, its head office shall file the annual income tax return for the other income of the unit jointly in accordance with Paragraph 2, Article 3 and pay profit-seeking enterprise income tax in accordance with the Act, the Offshore Banking Act and Income Basic Tax Act.
For sharing expense with institutions operating at the same location, the offshore banking unit or the offshore securities branch shall submit the proposed apportion method to the tax office in charge for reference within 3 months after the date the offshore banking unit begins operation.
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Article 61-1
Where any profit-seeking enterprise distributes its earnings, starting from January 1, 2010, the calculation equation for the amount of offsetting tax prescribed in Article 73-2 of the Act is as follows:
Amount of offsetting tax ＝Balance amount of the 10% surcharge of profit-seeking enterprise income tax which was actually paid under the provisions of Article 66-9 of the Act each year on the dividends or earnings distribution date × [(Distributed amount of net dividends or net earnings subject to a 10% surcharge of profit-seeking income tax)/(Balance amount in the accumulative undistributed earnings of which +10% of profit-seeking enterprise income tax was already levied on the dividends or earnings distribution date)] × Shareholding ratio of an individual person or profit-seeking enterprise prescribed in Article 73-2 of the Act on the dividends or earnings distribution date
Ceiling on the amount of offsetting tax = Distributed amount of net dividends or net earnings subject to a 10% surcharge of profit-seeking enterprise income tax received by such individual person or profit-seeking enterprise prescribed in Article 73-2 of the Act × 10%
From January 1, 2015, the amount of offsetting tax as stated in Article 73-2 refers to the half of the amount calculated using the formula given in the preceding paragraph.
The balance amount of the 10% surcharge of profit-seeking enterprise income tax which was actually paid mentioned in Paragraph 1 shall be determined prior to the date of distribution by the accumulative amount of the 10% of profit-seeking enterprise income tax which was actually paid each year under the provisions of Article 66-9 of the Act, minus the reduction in the amount of the 10% surcharge of profit-seeking enterprise income tax each year as assessed by the tax collection authority after its examination and verification of an annual income tax return, and the amount of 10% surcharge of profit-seeking enterprise income tax distributed to all shareholders each year.
The amount of 10% surcharge of profit-seeking enterprise income tax distributed to all shareholders as stated in the preceding paragraph shall be calculated according to the amount of offsetting tax calculated in Paragraph 1 divided by the shareholding ratio of an individual person or profit-seeking enterprise prescribed in Article 73-2 of the Act on the dividends or earnings distribution date; if the previous ratio is equal to zero, the amount of the 10% surcharge of profit-seeking enterprise income tax distributed to all shareholders shall be computed, assuming a ratio equal to 1, in accordance with the equation in Paragraph 1.
Where any profit-seeking enterprise shall fill out the regulated form and calculate the balance of the actually paid 10% surcharge of profit-seeking enterprise income tax on each year’s undistributed earnings prior to the end of 2009 while filing the annual income tax return of FY 2009; in the case of failure in filling out the regulated form and calculating the balance, the tax collection authority may assess and determine the balance according to its own findings.
The balance amount of the 10% surcharge of profit-seeking enterprise income tax which was actually paid under the provisions of Article 66-9 of the Act each year on the dividends or earnings distribution date as stated in Paragraph 1 is higher than the amount of the balance in the shareholder imputation tax credit account, such amount as may be distributed to the foreign shareholders shall be subject to the amount of the balance in its shareholder imputation tax credit account.
The amount of net dividends or amount of net earnings as stated in Paragraph 1 is limited to the portion of earnings distributed by a profit-seeking enterprise from the year of 1998 or subsequent years; the so-called accumulative undistributed earnings is limited to the portion of accumulative earnings not distributed by the profit-seeking enterprise from the year of 1998 or subsequent years.
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Article 109
The Rules shall come into force on the day of promulgation.
The amended articles of the Enforcement Rules shall come into force on the day of promulgation; however the articles amended on November 2, 2012 shall come into force on January 1, 2013.The articles amended on August 26, 2013 shall come into force on January 1, 2013; Article 48-7 amended on September 30, 2014 shall come into force on January 1, 2013；Article 65-1 amended on September 30, 2014 shall come into force in year 2015.
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