People of the Taiwan Area with income from Hong Kong or Macau sources shall be exempt from paying income tax on that income.
Juridical persons, organizations or other institutions of the Taiwan Area shall pay taxes on income earned in Hong Kong or Macau together with income from Taiwan. However, the amount of any taxes already paid in Hong Kong or Macau may be reported along with other taxes on foreign income already paid in accordance with the national tax laws of the source of income, and this amount may be deducted from the total amount of ROC taxes due.
The value of the deduction stipulated in the preceding paragraph shall not exceed the additional amount of tax due as a result of applying the appropriate tax rate to total combined taxable income from Hong Kong, Macau, and foreign sources, as well as domestic income.

A Hong Kong or Macau Resident who has income from sources in the Taiwan Area shall pay income tax on said income in accordance with provisions of the Income Tax Law.
The income of Hong Kong or Macau juridical persons, organizations or other institutions from sources in the Taiwan Area shall be taxed in accordance with the provisions of the Income Tax Law governing profit-seeking enterprises headquartered outside the territory of the Republic of China.

The business tax and income tax payable by the marine transport and air transport enterprises of the Taiwan Area upon the revenue or income derived from transport business done in Hong Kong or Macau and those taxes payable by the marine transport and air transport enterprises of Hong Kong or Macau upon the revenue or income derived from transport business done in the Taiwan Area may be mutually reduced or exempt based on the principle of reciprocity.
The regulations pertaining to the scope, method and procedure of the reduction or exemption of the taxes referred to in the previous paragraph, and any other items relevant thereto, shall be drafted by the Ministry of Finance in accordance with the agreements between the Taiwan Area and Hong Kong or Macau, and submitted to the Executive Yuan for review and approval.

Individuals, juridical persons, organizations or other institutions of the Taiwan Area engaged in investment or technological cooperation in Hong Kong or Macau shall deal with the Ministry of Economic Affairs or other relevant agencies when applying for necessary permits or submitting required materials. The rules for this shall be formulated by the Ministry of Economic Affairs together with other concerned agencies and submitted to the Executive Yuan for approval and subsequent promulgation.

The relevant regulations concerning foreign investment and remittance shall apply mutatis mutandis to investment in the Taiwan Area by Hong Kong or Macau Residents, juridical persons, organizations or other institutions. The regulations governing overseas Chinese investment and remittance shall apply mutatis mutandis to investment in the Taiwan Area by the Hong Kong or Macau Residents referred to in Article 4, Paragraph 3, of this Act.

Financial and insurance institutions in the Taiwan Area may, with permission, establish branches or subsidiaries in Hong Kong or Macau. The relevant rules shall be formulated by the Ministry of Finance and submitted to the Executive Yuan for approval and subsequent promulgation.

Relevant rules of the Act for Foreign Exchange Control shall apply mutatis mutandis to the regulation in the Taiwan Area of currency and negotiable instruments issued in Hong Kong or Macau, as long as they are fully backed by reserves and freely convertible.
In the event that the preceding conditions are not met, or if other major circumstances arise and are deemed harmful to the financial stability of the Taiwan Area, or as likely to seriously affect the financial policies of the Taiwan Area, then the inflow and outflow, exchange and other trading activities involving said currency and negotiable instruments in the Taiwan Area may be restricted or prohibited by the Central Bank of China in conjunction with the Ministry of Finance. However, said currency and negotiable instruments, if declared voluntarily to customs upon entry, may be taken out of the Taiwan Area.

The Central Bank of China may regulate, restrict or prohibit the inflow and outflow of Hong Kong or Macau capital to and from the Taiwan Area when necessary to maintain the stability of financial or foreign exchange markets. The regulations for this shall be formulated by the Central Bank of China together with relevant agencies and submitted to the Executive Yuan for approval and subsequent promulgation.

Trade between the Taiwan Area and Hong Kong or Macau may be conducted directly. However, if changes in the circumstances affect the major interests of the Taiwan Area, the Ministry of Economic Affairs, together with the relevant agencies, may impose necessary restrictions.
Hong Kong or Macau goods imported or carried into the Taiwan Area shall be deemed as imported items. The inspection, quarantine, administration, and taxation of such items shall thus be carried out in accordance with relevant import laws and regulations.
Goods exported to Hong Kong or Macau shall be deemed as export items and shall be treated in accordance with the relevant export laws and regulations.

The intellectual property of Hong Kong or Macau residents or juridical persons may be copyrighted in the Taiwan Area in accordance with the Copyright Law, provided one of the following two conditions is met:
(1) The works are published or issued for the first time in the Taiwan Area or published or issued in the Taiwan Area within 30 days of their first overseas distribution; provided, however, that Hong Kong or Macau also accords the works of the individuals or juridical persons of the Taiwan Area protection under the same circumstances and that this is verified as true; or
(2) Individuals or juridical persons of the Taiwan Area may enjoy copyright protection in Hong Kong or Macau on the basis of agreements, accords, negotiations, and laws and regulations or customary practice in Hong Kong or Macau.

The registration of or other procedures related to patents, trademarks, and other industrial property rights in the Taiwan Area for Hong Kong or Macau Residents, juridical persons, organizations or other agencies shall be permitted under any of the following circumstances:
(1) Hong Kong or Macau and the Taiwan Area are all participants in international accords or agreements for protection of patents, trademarks or other industrial property rights;
(2) Hong Kong or Macau signs a bilateral agreement with the Taiwan Area regarding the mutual protection of patents, trademarks or other industrial property rights, or a reciprocal accord conferring protection of patents, trademarks or other industried property rights is signed through organizations or institutions with the approval of the Competent Authority.
(3) When Hong Kong or Macau accepts the registration of or other application related to patents, trademarks, and other industrial property rights for individuals, juridical persons, organizations or other institutions of the Taiwan Area.
When Hong Kong or Macau recognizes priority rights with regard to registration of patents, trademarks, and other industrial property rights for individuals, juridical persons, organizations or institutions of the Taiwan Area, Hong Kong or Macau Residents, juridical persons, organizations or other institutions may claim priority rights if they apply to the Ministry of Economic Affairs within 12 months of their first application in Hong Kong or Macau.
The stipulated period in the preceding paragraph shall be six months for design patents or trademark registration cases.