The types of income collected by special municipalities are as follows:
1. Income from taxes.
2. Income from construction project profits.
3. Income from fines and compensations.
4. Income from charges and fees.
5. Income from trust management.
6. Income from properties.
7. Income from operational profits and enterprise earnings.
8. Income from subsidies.
9. Income from donations and contributions.
10. Income from local government taxes.
11. Other sources of income.

The types of income collected by counties/cities are as follows:
1. Income from taxes.
2. Income from construction project profits.
3. Income from fines and compensations.
4. Income from charges and fees.
5. Income from trust management.
6. Income from properties.
7. Income from operational profits and enterprise earnings.
8. Income from subsidies and assistance.
9. Income from donations and contributions.
10. Income from local government taxes.
11. Other sources of income.

The types of income collected by townships/cities are as follows:
1. Income from taxes.
2. Income from construction project profits.
3. Income from fines and compensations.
4. Income from charges and fees.
5. Income from trust management.
6. Income from properties.
7. Income from operational profits and enterprise earnings.
8. Income from subsidies.
9. Income from donations and contributions.
10. Income from local government taxes.
11. Other sources of income.

National taxes and special municipality and county/city taxes shall be allocated to special municipalities, counties/cities, and townships/cities in accordance with the provisions of the Act Governing the Allocation of Government Revenues and Expenditures.

The incomes and expenditures of special municipalities, counties/cities, and townships/cities shall be carried out in accordance with the provisions of this Act and the Act Governing the Allocation of Government Revenues and Expenditures.
The scope and collection of local taxes shall be in accordance with the provisions of the Act Governing Local Tax Regulations.
Regulations governing the scope and collection of charges and fees by local governments shall be in accordance with the provisions of the Charges and Fees Act; the local legislative bodies may pass resolutions to collect charges and fees not otherwise provided for by law.

Special municipalities and counties/cities may issue government bonds, take out loans, or use the budget surplus from the previous years to offset deficits in budget revenues and expenditures. Townships/cities may take out loans or use the budget surplus from the previous years to offset deficits in budget revenues and expenditures.
The outstanding proportion of the aforementioned loans taken out by special municipalities, counties/cities, and townships/cities shall be in accordance with the provisions of the Public Debt Act.

To ensure balanced development of the local governments, higher levels of government shall provide subsidies to local governments with lesser financial capabilities and may receive assistance funds from local governments with greater financial capabilities.
If a local government at any level fails to collect income that it is entitled by law to collect, the higher levels of government may reduce the amount of subsidy at their discretion. For local governments that have achieved results in generating other sources of income, higher levels of government may increase the amount of subsidy at their discretion.
The subsidies stipulated in Paragraph 1 shall include the subsidy item, recipient, subsidy percentage, and handling guidelines. The guidelines on the allocation of subsidies shall be formulated separately by the Executive Yuan and county governments.

To distinguish between central and local government expenses, it shall be clearly established which expenses are to be fully shouldered by the central government, which expenses are to be shared by the central government and the local self-governing bodies, and which expenses are to be fully shouldered by the local self-governing bodies. The central government shall not transfer the burden of its own expenses to the local self-governing bodies.
When carrying out self-government matters, special municipalities, counties/cities, and townships/cities shall formulate budget using their own financial resources as priority.
The criteria for distinguishing the expenses stipulated in Paragraph 1 shall be formulated in accordance with relevant laws.

Unless otherwise provided for by law, the criteria for the planning, formulation, and common expenses of the general budgets, additional budgets, and special budget of special municipalities, counties/cities, and townships/cities shall be in accordance with guidelines formulated by the Executive Yuan that govern the formulation of budgets by central and local governments.
If a local government fails to act in accordance with the aforementioned budget formulation guidelines, the Executive Yuan or county government shall reduce the amount of subsidy after taking into account the prevailing situation.

If self-government laws and regulations formulated or amended by special municipalities, counties/cities, or townships/cities result in a decrease in income, alternate sources of income shall be planned simultaneously. When an increase in financial expenses is required, sources of funds shall be planned beforehand or corresponding sources of income shall be stipulated in the self-government laws and regulations.

Counties/cities and townships/cities shall expend their efforts on public productive enterprises; the guidelines for the subsidy and administration thereof shall be formulated by the Ministry of the Interior.

Special municipalities, counties/cities, and townships/cities shall set up treasuries with an administrative body determined by the government of the special municipality, county/city government, or township/city office; the treasuries shall be created upon approval from the council of the special municipality, county/city council, or township/city council.