If a profit-seeking enterprise contributes and donates for the reasons stipulated in the following and in an amount that is below NTD 10,000,000 or ten percent of the amount of its income, such contribution and donation may be considered as expenses or losses of the year of payment that are exempted from the restriction in Sub-paragraph 2 of Article 36 of Income Tax Act:
1. Purchasing products or services originated by domestic Cultural and Creative Enterprises, and donating to the students or minority groups through schools, departments or other groups.
2. Cultural and creative activities held in distant regions.
3. Donating Cultural and Creative Enterprises to establish an incubation center.
4. Other matters identified by the central Competent Authority
The implementation regulations in the preceding paragraph will be stipulated by the central Competent Authority and the central authorities in charge of the end enterprises concerned.

To enhance the creativity of Cultural and Creative Industries, companies may deduct or exempt from the payable tax by reason of their investment expense in research and development of cultural creativity and talent cultivation in accordance with relevant tax acts or other regulations.

To promote the development, production, and distribution of intellectual property related to Taiwan’s locally produced cultural content, companies or limited partnerships making a cash investment for a period of at least two years in a cultural and creative company or limited partnership within a defined scope and having been designated by the Executive Yuan as being in a nationally strategic cultural and creative industry, in so doing becoming the registered shareholder or partner of said cultural and creative company or limited partnership, may, every year for a period of five years, deduct 20 percent of the invested amount or cost of the shares in the cultural and creative company or limited partnership from their business tax. The total amount deducted every year may not exceed 50 percent of the total business income tax of the company or limited partnership.
For cases wherein a company or limited partnership makes a cash investment in the aforementioned cultural and creative industry enterprise of a defined scope and this is approved by the central Competent Authority, where an investor has not deducted the total amount of its original investment within two years of the date of investment, it may, each year for a period of five years, deduct 20 percent of the investment amount from the total business income tax. The total amount deducted each year may not exceed 50 percent of the total business income tax of the company or limited partnership.
For cash investments mentioned in the preceding two Paragraphs that involve venture capital companies or limited partnerships, shareholders or partners may, in line with the stipulations of the preceding two Paragraphs, consider the deductible amount based on their shareholding or investment amount percentage to calculate their deduction for investment. Where a venture capital business becomes the registered shareholder or partner of a cultural and creative business or limited partnership, or invests in a nationally strategic cultural and creative industry, for five years starting from the third year, it may deduct the calculated amount from the annual business income tax. The total amount deducted each year may not exceed 50 percent of the total business income tax.
Where companies or limited partnerships combine the investment deductions defined in the preceding three Paragraphs or other investment deductions stipulated in other laws in the same year, the total amount deducted for investment may not exceed 50 percent of the total business income tax for that year. This limitation shall not apply where other laws stipulate that a given year is the last year where a deduction may be taken and therefore that there are no limits on deductible amounts.
For Paragraphs 1 and 2, companies or limited partnerships, and for Paragraph 3, venture capital companies , guidelines addressing the scope of use as well as eligibility criteria, deduction rate (percentage), application period, application procedure, methods of calculation, and other related matters concerning the investment deduction criteria, defined scope, cultural and creative company or limited partnership, nationally strategic cultural and creative industry shall be drafted by the central Competent Authority in conjunction with the Ministry of Finance.
The stipulations of Paragraph 1 through Paragraph 3 shall be in force for 10 years.

Where an individual makes a cash investment in a nationally strategic cultural and creative industry-related domestic, high-risk innovation company, or limited partnership of a defined scope whose establishment has been approved of by the central Competent Authority that has not yet been in operation for a full two years, and where the individual has obtained newly issued shares in or made a capital contribution to said firm or enterprise and has not yet had such a status for a full two years, the investor may, prior to the end of the two-year period, deduct up to 50 percent of the investment amount from his/her total income tax.
Cases of individuals making a cash investment in cultural and creative industries as in the preceding Paragraph of a defined scope and approved of by the central Competent Authority where the National Development Fund under the Executive Yuan is a co-investor and where, for the same case, investment in a single year reaches NT$500,000 and continues for a second year, such individuals may deduct up to 50 percent of the investment amount from their personal income tax.
Where, in a single year, an individual takes the investment deductions stipulated in the preceding two Paragraphs and special investment deductions defined in other laws, the total deduction taken in a given year may not exceed NT$3 million.
For Paragraphs 1 and 2 concerning individuals’ investment deduction, guidelines addressing the scope of the terms high-risk innovation company, limited partnership, case involving a nationally strategic cultural and creative industry; as well as conditions, deduction rate (percentage), application period, application procedure, methods of calculation, and other related matters shall be drafted by the central Competent Authority in conjunction with the Ministry of Finance.
The stipulations of Paragraph 1 and Paragraph 2 shall be in force for 10 years.

Those who have already elected to use other tax incentives provided for in other laws may not also apply the tax incentives of this Act.

If the machinery and equipment imported from abroad by a cultural and creative enterprise for its own use are not currently manufactured by local manufacturers as specifically verified by the Ministry of Economic Affairs, they shall be exempted from import duties.