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March 2005 Issue

Bulletin

NEW TAX RULES FOR IN-VESTMENTS OF TECHNOLOGY

On 7 January 2005, the Legislative Yuan enacted amendments to the Industrial Upgrading Act (IUA). Two new provisions were introduced: Articles 19-2 and 19-3, which provide criteria for the taxation of equity contributions made in the form of patent or know-how. This change to the law was prompted by a legal interpretation is-sued by the Ministry of Finance on 1 October 2003, which stated that from 1 January 2004, when equity ... More

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