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Laws & Regulations Database of The Republic of China (Taiwan)

Print Time:2024/11/22 07:33
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Chapter Law Content

Chapter IV Finance
Article 20
The sources of the EPPI’s revenue are as follows:
1. Endowed property;
2. Protection fund contributions or annual fees collected from the MLM enterprises and participants;
3. Interest accrued from the property and management earnings;
4. Other donations.
Article 21
he amounts of the protection funds and annual fees, as well as the timing,
payable by the MLM enterprises, are as follows:
1. Protection Funds:
(1)The determinations for the following eleven tiers of payments are based on the total MLM revenue from the previous fiscal year.
A. For those with a total revenue of NT$(the same unit below)2 billion or more: NT$4 million;
B. For those with a total revenue over $1.5 billion and less than $2 billion: $3 million;
C. For those with a total revenue over $1 billion and less than $1.5 billion: $2.5 million;
D. For those with a total revenue over $600 million and less than $1 billion: $2 million;
E. For those with a total revenue over $300 million and less than $600 million: $1.5 million;
F. For those with a total revenue over $200 million and less than $300 million: $1 million;
G. For those with a total revenue over $100 million and less than $200 million: $600,000;
H. For those with a total revenue over $30 million and less than $100 million: $300,000;
I. For those with a total revenue over $10 million and less than $300 million: $100,000;
J. For those with a total revenue less than $10 million: $80,000;
K. Newly registered businesses: $50,000.
(2)For those MLM enterprises who previously paid their protection funds, and whose scale of business has now advanced, shall make up the difference in funds between the tiers. For those whose scale of business is stable, no additional payments are required. For those whose scale of business is downgraded, or the tier amounts have been adjusted downward, no refunds will be made.
(3)Newly registered MLM enterprises should pay the EPPI in the same quarter as when their registration is completed. For MLM enterprises that are required to make up the difference, due to their tier advancement, should pay the EPPI before the end of March each year.
2. Annual fees:
(1)The determinations for the following ten tiers of payments are based on the total MLM revenue from the previous fiscal year:
A. For those with a total revenue over $700 million: $100,000;
B. For those with a total revenue over $600 million and less than $700 million: $90,000;
C. For those with a total revenue over $500 million and less than $600 million: $80,000;
D. For those with a total revenue over $400 million and less than $500 million: $70,000;
E. For those with a total revenue over $300 million and less than $400 million: $60,000;
F. For those with a total revenue over $200 million and less than $300 million: $50,000;
G. For those with a total revenue over $100 million and less than $200 million: $40,000;
H. For those with a total revenue over $50 million and less than $100 million: $30,000;
I. For those with a total revenue over $5 million and less than $50 million: $20,000;
J. For newly registered businesses and those with a total revenue less than $5 million: $10,000.
(2)Newly registered MLM enterprises shall pay the EPPI in the same quarter as when their registration is completed. Existing MLM enterprises shall pay the EPPI before the end of March each year.
(3)If the annual fees paid by the MLM business reach a certain value within a certain number of years, the FTC may announce the cessation of payments, depending on the overall size of the fund.
Article 22
The amounts of protection funds and annual fees, as well as the timing, payable by the MLM enterprises, shall be announced by the FTC.
Participants joining the operations of two or more MLM enterprises may pay their protection fund contributions and annual fees through one of the MLM enterprises.
MLM enterprises shall collect the protection fund contributions and annual fees from their participants and pay the EPPI, unless the ways for payment are otherwise provided in the operating regulations of the EPPI.
Participants who have not paid their protection funds and/or annual fees, in accordance with the regulations, cannot request the EPPI to perform its missions, as described in Subparagraphs 2 and 3 of Article 3
Article 23
The protection funds and annual fees, as paid by the MLM businesses and other participants, are non-refundable.
The EPPI shall produce and update the registers for payers of protection fund contributions and annual fees, and present them to the FTC for reference on a quarterly basis.
Article 24
For the management of accounting matters of the EPPI, the accrual principle shall be adopted as the accounting basis, and the fiscal year shall be based on a calendar year. The accounting system shall be formulated according to the nature of accounting items, actual business operations as well as the needs in development management, and filed to the FTC for reference.
The accounting system mentioned in the preceding paragraph shall include the following item:
1. A general description of the accounting system;
2. Accounting journals and ledgers;
3. The description and usage of the accounting items, accounting documents, accounting books and accounting reports;
4. Standards and procedures of general accounting;
5. Regulations regarding collections, payments, and property management.
Article 25
The EPPI shall open a special account for deposit with the financial institution designated by the FTC to facilitate the control and management of income and expenditure.
Article 26
The endowed assets for the establishment of the EPPI shall be no less than 10 million in cash; the principal under the amount of 10 million shall not be used.
The income of the EPPI shall not be spent, except for the purposes of implementing its missions and operations, as stated in Article 3
Article 27
The EPPI shall annually compile a work plan and budget for the following year, and then submit it, upon the approval of board of directors, to the FTC for recording before the end of October.
Within five months after the end of each year, the EPPI shall submit its operations reports and financial statements of the previous year to the board of directors for review, and to all supervisors for their respective audits. The said reports, together with the CPA audit reports and supervisors' reports of the previous year, shall be submitted to the FTC for recording.
The information stated in the preceding 2 paragraphs shall be made public in a proper way.
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