Advance Ruling under Article 4 of Taiwan’s Income Tax Act

Article 4 of Taiwan’s Income Tax Act states:

“Income tax on the following categories of income shall be exempted: … Royalty paid to a foreign enterprise for the use of its patent rights, trademarks, and/or various kinds of special licensed rights in order to introduce new production technology or products, improve product quality, or reduce production cost under the approval of the competent authority as a special case, as well as remuneration paid to a foreign enterprise for its technical services rendered in construction of a factory for an important production enterprise determined and approved as such by the competent authority.”

Jay Lo,Tax Partner , +886 (0)2 2789 0887 Ext. 314