Chapter 4. Financing of Political Parties
The sources of funding and income for political parties shall be as follows:
1. Political party membership dues
2. Political donations accepted in compliance with relevant laws and regulations
3. Political party subsidies
4. Sales from publications and promotional materials created by political parties to publicize their philosophies or engage in promotional activities as well as income generated from the granting or conceding of rights
5. Other income collected in compliance with this Act
6. Interest generated from funds or income described in the preceding five paragraphs
The calendar year shall be adopted as the fiscal year of a political party. Accrual basis accounting shall be employed, and account ledgers shall be established to record the party accounts in detail.
All accounting documents, excepting those which must be permanently kept or open account items, should be kept for seven years after the completion of annual closing procedures; all account ledgers, except for those involving open account items, shall be kept for ten years after the completion of annual closing procedures.
Political parties should submit their annual property and financial statements to the competent authority before May 31 each year.
The annual property and financial statements shall contain the following documents:
1. Final accounts
2. A Profit and Loss account
3. A balance sheet
4. An inventory of property
The property and financial statements described in Paragraph 1 shall be signed or stamped by the party leader, audited and certified by a certified public accountant commissioned by the political party, and passed by the party’s representative assembly or party congress. If no representative assembly or party congress is held in the current year, this fact shall be noted in the statements and the statements shall be assessed during the party’s representative assembly or party congress held in the following year.
The competent authority shall compile the property and financial statements described in Paragraph 1 within forty-five (45) days after the submission deadline and subsequently publicize the information in government gazettes and newsletters, and online.
The competent authority shall notify political parties that fail to submit property and financial statements pursuant to Paragraphs 1–3 to do so within a prescribed period of time; the competent authority shall notify political parties to revise submitted statements that do not meet requirements. The competent authority may make public declarations in government gazettes, government newsletters, or online regarding political parties that fail to submit statements, make required revisions to statements, or comply with regulations even after revisions are made, if deemed necessary.
The competent authority shall allocate a part of its annual budget to subsidize political parties that have attained at least three percent (3%) of the votes in the latest national legislative elections for legislators-at-large and legislators residing overseas.
The subsidy described in the preceding paragraph shall be based on the number of votes attained by the political parties at the most recent national legislative elections for legislators-at-large and legislators residing overseas, where an annual subsidy of NT$50 is offered for every vote attained. The amount of the subsidy granted in any fiscal year shall be calculated by the competent authority, and the subsidy shall be collected by the political party within two months (political parties shall be required to produce a receipt upon collecting the subsidy); the subsidy shall be granted till the tenure of the current session of the members of the Legislative Yuan expires.
The competent authority shall notify political parties that fail to collect the subsidy before the deadline to collect it within three months; political parties that still fail to collect the subsidy before the new deadline shall forfeit the subsidy.
Political parties shall use the subsidy described in Paragraph 2 to defray campaign costs, personnel costs, office expenses, business expenses, policy research costs, and personnel training costs.
Political parties may not operate or invest in profit-making businesses or engage in profit-making activities outside of those described in Article 19, Subparagraph 4.
Political parties may not purchase real estate except for that to be used for their offices.