The central competent authority shall formulate national agricultural production and distribution policies and plans, and supervise the implementation of the said polices and plans.
The formulation of the policies and plans as stated in the preceding paragraph shall take into consideration agricultural production, life and the ecosystem and assist in developing a sustainable system of agriculture.

The central competent authority may, in concert with other authorities concerned, designate specific agricultural products or processed products to assist the proprietors with the establishment of respective industrial development fund where it is deemed necessary.
The management and utilization of the fund as stated in the preceding paragraph shall be guided and supervised by the central competent authority in concert with other authorities concerned.

The competent authorities shall, in concert with various authorities concerned, plan agricultural production zones on the basis of the distribution of agricultural resources, the production environment and the needs of development; and depending on the market demand, provide guidance in the establishment of specialized agricultural zones of an adequate scale to planning and implementing the planned production, manufacture, storage and distribution. Government- designated public construction projects that are executed in the said special agricultural zones are eligible for subsidization or the governmental assistance in loan applications.

In order to develop agricultural technology, the competent authority may provide guidance in establishing agricultural technology zones; the establishment, management and guidance of the zones shall be regulated by a specific law.

Farmers, who voluntarily and jointly undertake agricultural practices in compliance with the specific requirements as stipulated by the competent authorities, may form cooperation groups for management. On the basis of the operation status, the competent authority may provide guidance, rewards and subsidization.
The provisions regulating requirements for establishing a cooperation group, application procedures, appraisal methods, guidance, rewards, subsidization and other items with are to be enacted by the central competent authority.

The central competent authority shall promulgate respectively standard specifications of agricultural materials of the seed and seedling of plants, breeding animals, fertilizers, feeds, pesticides and veterinary drugs, as well as criteria for the factories/plants establishment, in order to facilitate the inspection of the said materials accordingly.
In order to elevate the quality level of agricultural products and processed products and maintain the rights and interests of consumers, the central competent authority shall carry out the certification or verification for the logo authentication system of the related products.

The central competent authority shall formulate plans for agricultural mechanization development, guide farmers or farmers’ organizations in purchasing and utilizing the agricultural machinery and further assist in loan applications or subsidization for the aforementioned purposes.

The price of electricity, gasoline and water for powering agricultural operation shall not be higher than that of those for general industrial purposes.
Electricity fee for powering agricultural operation are not calculated in terms of progressive increment, and during the suspension period of power use, basic electricity fee is to be exempted.
The scope and standard of the use of electricity, gasoline and water for powering agricultural operation shall be formulated by the Executive Yuan.

The competent authority shall encourage with rewards the expansion of operation scale of family farms, and shall appropriate funds for subsidization or assist in loan applications.
(c) The expansion of operation scale as stated in the preceding paragraph, operation scale may be expanded through cooperation groups, leasing from arable lands, appointment or other modes of farming.

The penalty for illegal use of arable land shall be under the regulations of Regional Planning Law. The registration of transferring ownership of arable land shall be under the regulations of Land Law or Civil Law.

City or county/municipality governments shall strengthen the investigation and prohibition against violations of agricultural land-use regulations, and shall cooperate with the investigation unit, which is established for this purpose in accordance with related land regulations.
In order to strengthen the investigation of violations of arable land use, the central competent authority may provide rewards of encouragement for impeachment of such regulations.

Private juristic persons are prohibited from taking arable lands, with the exception of farmers’ organizations, agricultural corporations or agricultural experimentation and research institutes taking lands pursuant to Article 34 of this Act with permission.

Farmers’ organizations, agricultural corporations, or agricultural experimentation and research institutes in compliance with technology-intensive or capital-intensive standards and categorization, after receiving permission through application, may take arable lands. Technology-intensive or capital-intensive standards and categorization shall be formulated and promulgated by the central competent authority.
Farmers’ organizations, agricultural corporations, or agricultural experimentation and research institutes applying for taking arable lands shall submit operation and exploitation plans as well as other required documentation to the competent authorities at city or county/ municipality of the land location; the said government will then submit the application to the central competent authority for permission and the issuance of the certification of the approval. The applicant then takes the certification to register the transfer of the land ownership.
The central competent authority shall base its approval on factors such as the state of agricultural development at the land location, the categorization of the application, as well as the operation and exploitation plans, and it shall limit the site location, the size, and the usage of the arable land, and the highest amount of mortgage on the land.
Regulations governing the said transfer permission application of the arable land taken by farmers’ organizations, agricultural corporations, or agricultural experimentation and research institutes shall be formulated by the central competent authority.

Farmers’ organizations, agricultural corporations, or agricultural experimentation and research institutes taking arable lands pursuant to the preceding article are prohibited from changing operation and exploitation plans at will or laying the land idle, unless the aforesaid acts are approved by the central competent authority.

Farmers’ organizations, agricultural corporations, or agricultural research institutes taking arable lands by permission pursuant to Article 34 are prohibited from (changing the use of the land) using the land for other purposes. An exception can be adopted for operating projects, which apply for changing land usage based on corresponding regulations.

Agricultural lands in use for agricultural purposes may apply for exemption of the land value incremental tax when they are transferred to natural persons.
The arable lands of agricultural use that are transferred to farmers’ organizations, agricultural corporation and agricultural experimentation and research institutes in accordance with Articles 33 and 34, and are accorded with the needs of agricultural development, specific scales and other conditions, may apply for exemption of the land value incremental tax upon the approval of the competent authorities at City or county/municipality level.
The said land taker exempted from the land value incremental tax as stated in the last two paragraphs, shall pay the land value incremental tax at next transfer, if within the period of his/her land ownership the land is found not used for agricultural purposes by the authorities concerned and not restored for agricultural uses within the period of limitation set by the authorities concerned, or if the land is restored for agricultural use within the official period of limitation but is found used for other purposes again later.
The said land taker not using the land for agricultural purposes shall combine the land given to or taken from his/her spouse for the imposition of land value incremental tax.

The agricultural land in use for agricultural purposes thereon when taken by inheritors or legatees, the values of the said land and crops shall be exempted from estate duty and exempted from farmland tax for ten years from the year of taking of the estate. The inheritors or legatees shall re-pay the tax which was exempted before if within five years from the date of inheritance or acceptance they do not continue engaging the land for agricultural purposes, and do not restore agricultural uses of the land within the period of limitation as stipulated by the authorities concerned, or have restored the land for agricultural use within the period of limitation as stipulated by the authorities concerned but are found later used for other purposes again. It is however inapplicable upon the death of the inheritors or legatees, or the expropriation or changing of the land in accordance with the laws.
In the event that the agricultural land in use for agricultural purposes thereon are given to the inheritors as gifts pursuant to Article 1138 of the Civil Law, the values of the said land and crops shall be exempted from bestow tax and exempted from farmland tax for ten years from the year of acceptance of the estate. The donees shall re-pay the tax which was exempted before if within five years from the date of acceptance they do not continue engaging the land for agricultural purposes and do not restore agricultural uses of the land within the period of limitation as stipulated by the authorities concerned, or have restored the land for agricultural use within the period of limitation as stipulated by the authorities concerned but are found later used for other purposes again. Such a rule is inapplicable upon the death of the donees, or the expropriation or changing of the land in accordance with the laws.
In the event pursuant to the first paragraph where there are more than one inheritor who all agree to have one inheritor to inherit the land and compensate other inheritors in cash, the competent authorities shall assist with the application of a 20-year land loan.

The building site in the urban area, no matter when it has been converted from agricultural land by law, can be applied for exemption of the land value incremental tax or estate duty or bestow tax according to the Article 37, paragraph 1 and Article 38, paragraph 1 or 2. The applicants applying for the tax exemption as mentioned above have to submit 2 documents which are issued by urban planning and agricultural departments separately to tax revenue. The document, which is issued by the urban planning department, has to recognize fitting for one of the condition mentioned below, and the other one, which is issued by agricultural department, has to certificate of being in agricultural use.
1.Due to the detail plan has not been completed the building site can not be used as it has been planed.
2.Although the detail plan has been completed, concerning stipulations limit its development by ways of land consolidation or zoned expropriation, the building site still can not be used as it has been planed before the plans of land consolidation or zoned expropriation are put into practice.
Agricultural land which has been converted into not agricultural use before August 3rd 1983 can be applied for exemption of land value incremental tax according to the preceding paragraph under the situation of local government’s agreement.

The applicants applying for land value incremental tax exemption, or the exemptions of estate duty, bestow tax and farmland tax pursuant to the preceding two articles, shall submit the certificate of agricultural use of agricultural land to the tax revenues.
The regulations with respect to the acknowledgement standard of taking- agricultural land for agricultural use, the certificate of agriculture use of agricultural land as stated in the preceding paragraph, issuance procedures and other requirements shall be formulated by the central competent authority in concert with other authorities concerned.

Agricultural lands engaged in agricultural purposes with the approval of the land value incremental tax application or with the exemptions of estate duty, bestow tax, or farmland tax shall be subject to regular or random inspections and shall be monitored and supervised by the competent authorities at the city or county/municipality in concert with other authorities concerned. In the event of non-compliance of agricultural use pursuant to Articles 37 and 38, the violator shall be subject to the governance of the first paragraph of Article 69 in addition to re-pay the tax, which was exempted before.

In the event of family farms purchasing or exchanging arable lands at the same or an adjacent site to expand the operation area or to facilitate agricultural operations, provided that the total area of the land of the acquired plus the surface area of the original arable land is less than five hectares, the additional part of land shall be exempted from farmland tax for five years. With respect to the funds required for the purchase of the land or for necessary compensation in cash, the competent authority shall assist in applying for a 20-year loan.

Agricultural school or college graduates, who are in need of capitals for purchasing arable lands and directly engaging in agricultural production, shall be assisted by the competent authorities for applying for a 20-year loan.

The central competent authority shall, in concert with other authorities concerned, formulates provisions regulating the eligibility of applicants, the period, interests, the amount and other related matters of the said loan as stated in the first paragraph of Article 30, the third paragraph of Article 38, Article 41 and the preceding provision.