State-owned enterprise shall prepare budgets based on the business/expansion plans approved by the competent authorities and shall determine the amount of capital required. The budgets, once approved, shall be appropriated either in one lump sum or in installments by the National Treasury.

State-owned enterprise shall begin preparing the budget proposals before the start of each fiscal year. The budget proposals shall be submitted to the competent authorities for approval.

State-owned enterprise shall turn over its profits to the National Treasury after the year-end audit. Enterprises, which, in accordance with Article 4, are established for demonstration purposes or other reasons as specified by the government may request subsidies from the competent authorities in the event losses are incurred.

State-owned enterprise shall control their expenditures, and the Executive Yuan shall set standards for determining the pay scale and non-salary benefits of state-run enterprise employees. Any expenditures surpassing these limits shall not be allowed.

State-owned enterprise with the approval of the government way issue specific usage corporate bonds without being subjected to the restrictions of Article 247, Paragraph 2 of Article 249, and Paragraph 2 of Article 250 of the Company Act. The specific usage and annual total issued amount of the bonds shall be submitted to Legislative Yuan for approval through the budget process.
If the proceeds realized from the issue of corporate bonds are applied for usage other than that stipulated, the responsible person of the state-owned enterprise shall be sentenced to an imprisonment under two years.

The Directorate-General of Budget, Accounting and Statistics shall, in a manner befitting a business enterprise, establish accounting systems for state-owned enterprise in coordination with the competent authorities.

The revenue and the expenditure of state-owned enterprise shall be post-audited by the auditing agencies. In the case of large-scale enterprises, the auditing agencies may assign auditors to conduct on-site audits.