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Chapter Law Content

Title: Local Government Act CH
Category: Ministry of the Interior(內政部)
Chapter 3. Local Self-government
Section 5. Local Finance
Article 63
The sources of income of 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 self-government taxes.
11. Other income.
Article 64
The sources of income of 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 self-government taxes.
11. Other income.
Article 65
The sources of income of 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 self-government taxes.
11. Other income.
Article 66
National taxes and special municipality and county/city taxes shall be allocated to special municipalities, counties/cities, townships/cities in accordance with the provisions of the Act Governing the Allocation of Government Revenues and Expenditures.
Article 67
The incomes and expenditures of special municipalities, counties/cities, 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 Local Taxation Law.
The regulations on the scope and collection of charges and fees by local governments shall be in accordance with the provisions of the Charges and Fees Act; those not provided for by law shall be collected upon resolution of the local legislative body.
Article 68
Special municipalities and counties/cities may issue government bonds, carry out loans, or use the budget surplus from the previous years to offset the deficit in budget revenues and expenditures. Townships/cities may carry out loans or use the budget surplus from the previous years to offset the deficit in budget revenues and expenditures.
The percentage of the unpaid amount of the aforementioned government bonds and loans of the special municipalities and counties/cities and the percentage of the unpaid amount of the aforementioned loans of townships/cities shall be in accordance with the stipulations of the Public Debts Law.
Article 69
To ensure balanced development of the local governments, the higher government agency levels shall provide subsidies to local government with lesser financial capabilities, and may receive assistance funds from local governments with superior financial capabilities.
If the local governments at the different levels fail to collect income from other sources despite being in accordance with law, their superior government agency may reduce the amount of subsidy at its discretion. For local governments that have achieved results in generating other sources income, their superior government agency may increase the amount of subsidy at its 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 or county governments.
Article 70
To distinguish between central and local government expenses, expenses to be fully shouldered by the central government, to be shared by the central government and the local self-government bodies, and to be fully shouldered by the local self-government bodies shall be clearly stipulated. The central government shall not transfer the expenses that it has to shoulder to the local self-government bodies.
When carrying out self-government matters, the 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.
Article 71
Unless otherwise provided by law, the criteria for the planning, formulation, and common expenses of the total fiscal budgets, additional budgets, and special budget of the special municipalities, counties/cities, and townships/cities shall be in accordance with the Guidelines to the Formulation of Budgets by the Central and Local Governments formulated by the Executive Yuan.
Where 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.
Article 72
In the event that self-government ordinances and regulations are formulated or amended by the special municipalities, counties/cities, and townships/cities should result in a decrease in income, alternate sources of income shall be planned simultaneously. Where an increase in financial expenses is required, sources of funds shall be planned beforehand or the self-government ordinances and regulations shall stipulate the corresponding sources of income.
Article 73
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.
Article 74
Special municipalities, counties/cities, and townships/cities shall set up treasuries, the administrative body of which shall be determined by the governments of the special municipality, county/city governments, and township/city offices; the treasuries shall be created upon approval from the councils of the special municipality, county/city councils, or township/city councils.