The statutory tax benefit in terms of "investment credit" referred to in Subparagraphs 7 and 8, Paragraph 1, Article 3; Paragraph 2, Article 4; and Articles 6 and 11 of the Act shall mean those investment credit privileges as provided for in the following laws:
1. Articles 6, 7, 8, and 15 of the abolished Statute for Upgrading Industries;
2. Articles 29 and 33 of the Statute for Encouragement of Private Participation in Transportation Infrastructure Projects;
3. Articles 37 and 40 of the Act for Promotion of Private Participation in Infrastructure Projects;
4. Article 42 of the Business Mergers And Acquisitions Act;
5. Articles 14 and 24 of the New Town Development Act;
6. Article 70 of the Urban Renewal Act;
7. Article 23 of the Resource Recycling Act;
8. Article 50 of the Act for the Development of Tourism;
9. Article 7 of the Motion Picture Act;
10. Article 21 of the Act for Establishment and Administration of Science Parks;
11. Articles 10 and 10-1 of the Statute for Industrial Innovation;
12. Articles 5 and 6 of the Act for the Development of Biotech and New Pharmaceuticals Industry prior to the 30 December 2021 amendment and promulgation, and Articles 5 to 7 of the Act for the Development of Biotech and Pharmaceutical Industry;
13. Article 35 of the Act for Development of Small and Medium Enterprises;
14. Other laws containing the provisions governing grant of investment credit incentives.

The method for calculating the amount of the income basic tax by a profit- seeking enterprise as prescribed in Article 8 of the Act is formulated as follows:
The Amount of Income Basic Tax = (the Amount of Basic Income – NT$ 500,000) × tax rate
The amount of tax levied on foreign-sourced incomes under Paragraphs 9 and 10 of Article 5 of these Rules, the amount of the provisional income tax payment not yet offset, and the withholding income tax amount not yet offset, may be deducted from the amount of income tax difference calculated in accordance with Paragraph 1, Article 4 of the Act when calculating the amount of payable income tax, and shall be paid up by a profit-seeking enterprise before filing its annual income tax return.

The formulas to be used by an individual taxpayer for calculating his/her basic taxable income and for calculating his/her income basic tax in accordance with the provisions set out respectively in Articles 12 and 13 of the Act are specified as follows:
The Amount of Basic Income = Net Amount of Consolidated Income + the total amount of the dividends and earnings which is chosen to calculate the tax payable separately in accordance with Paragraph 5, Article 15 of the Income Tax Act + (The Amounts specifiedin Subparagraphs 1, 2, and 4 of Paragraph 1, Article 12 of the Act) + (The Amount specified in Subparagraph 3, Paragraph 1, Article 12 of the Act – the Loss specified in Paragraph 2, Article 12 of the Act) + (The Amount prescribed in Subparagraph 5, Paragraph1, Article 12 of the Act – the Loss specified in Paragraph 4, Article 12 of this Act).
The Amount of Income Basic Tax = (the Amount of Basic Income – NT$6,000,000) × 20%.
When calculating the basic taxable income using the formula specified in the preceding paragraph, if the amount of balance resulted from subtracting the amount of loss specified in Paragraph 2, Article 12 of the Act from the amount specified in Subparagraph3, Paragraph 1, Article 12 of the Act and/or the amount of balance resulting from the subtraction of the amount of loss specified in Paragraph 4, Article 12 of the Act from the amount specified in Subparagraph 5, Paragraph 1, Article 12 of the Act are/is ofa negative figure, such negative figure(s) shall not be included in the calculation.
For an individual taxpayer, if the amount of the income basic tax is higher than the amount of the ordinary income tax amount, then the amount of difference thereof as calculated under the provisions set out in Paragraph 1, Article 4 of the Act shall be offsetagainst the not-yet-offset withholding tax and tax credit when calculating the income tax payable by him/her, and he/she shall make voluntary payment thereof before filing his/her annual income tax return. However, the withholding tax, with regard to the amountof income which is not allowed to be added to the gross consolidated income, shall not be deducted from the income tax payable.
The amount of regular income tax of an individual as referred to Article 11 of the Act shall include the tax payable of the total amount of the dividends and earnings which is calculated separately in accordance with Paragraph 5, Article 15 of the Income TaxAct.

Where a profit-seeking enterprise or an individual which is required to declare the amount of his/her/its basic taxable income is found to have omitted or under-reported any basic taxable income amount, thereby resulting in any omission or under-reporting of the income basic tax payable, the amount of tax so evaded shall be computed in accordance with the following formula:
1. Where the ordinary income tax amount assessed by the collection authority under the provisions set forth in the Act is higher than or equal to the amount of the income basic tax, the provisions set out in Article 110 of the Income Tax Act shall apply instead of applying the provisions set out in Article 15 of the Act.
2. Where the ordinary income tax amount assessed by the collection authority under the provisions set forth in the Act is lower than the amount of the income basic tax, the amount of tax so evaded shall be computed in accordance with the following formula:
(1) If the taxpayer is a profit-seeking enterprise:
A. Where the amount of the ordinary income tax assessed in respect of the declared amount of the ordinary income is lower than the amount of the basic income tax assessed in respect of the declared amount of the basic income:
The Amount of Tax Evaded ＝ Total Amount of Assessed Income Basic Tax － the Amount of the Income Basic Tax Amount Assessed in respect of the Declared Amount of the Basic Income － the Amount of Withholding Tax on the Amount of Omitted or Under-reported Amount of the Income Basic Tax.
B. Where the amount of the ordinary income tax assessed in respect of the declared amount of the ordinary income is higher than the amount of the income basic tax assessed in respect of the declared amount of the basic income:
The Amount of Tax Evaded ＝ Total Amount of the Assessed Income Basic Tax － the Amount of the Ordinary Income Tax Amount Assessed in respect of the Amount of Declared Ordinary Income － the Amount of Withholding Tax on the Amount of Omitted or Under-reported Income Basic Tax.
C. The amount of the income basic tax assessed in respect of the declared amount of the basic income and the total amount of the assessed income basic tax shall be calculated in accordance with the following formulas:
The Amount of the Income Basic Tax Assessed in respect of the Declared Amount of the Basic Income ＝ (the Amount of the Basic Income Assessed in respect of the Declared Amount of Such Income － NT$500,000) × tax rate. The Total Amount of Assessed Income Basic Tax ＝ [(the Amount of the Basic Income Assessed in respect of the Declared Amount of Such Income ＋ the Amount of Omitted or Under-reported Taxable Basic Income) － NT$500,000] × tax rate.
(2) In the case of an individual taxpayer:
A. (A) Where the amount of tax credit is not falsely increased:
The Amount of Tax Evaded ＝ The Amount of Assessed Income Basic Tax － the Amount of the Income Basic Tax Assessed in respect of the Declared Amount of the Basic Income － the Amount of Tax Refund Assessed in respect of the Declared Amount of the Basic Income (no matter whether the tax has been refunded or not) － the Amount of Withholding Tax and tax credit on the Amount of Omitted or Under-Reported Income Basic Tax － the Portion of the Amount of Tax Payable and Exemptible from Fines included in the Amount of Income Basic Tax Omitted or Evaded.
(B) Where the amount of tax credit is falsely increased:
The Amount of Tax Evaded ＝ The Amount of Tax Evaded calculated under (A) ＋ the amount of the tax evaded or over-refunded due to falsely increaseing the amount of tax credit － the amount of tax over-paid or refundable due to omitted or under-reported Income.
B. The amount of assessed income basic tax, the amount of the income basic tax assessed in respect of the declared amount of the basic income and the portion of the amount of tax payable and exemptible from fine included in the amount of income basic tax omitted or evaded shall be calculated in accordance with the following formulas:
The Amount of Assessed Income Basic Tax ＝ [(the Amount of the Basic Income Assessed in respect of the Declared Amount of Such Income ＋ the Amount of Omitted or Under-Reported Taxable Basic Income) － NT$6,000,000] × 20%.
The Amount of the Income Basic Tax Assessed in respect of the Declared Amount of the Basic Income ＝ (the Amount of the Basic Income Assessed in respect of the Declared Amount of Such Income － NT$6,000,000) × 20%.
The Portion of the Amount of Tax Payable and Exemptible from Fine included in the Amount of Income Basic Tax Omitted or Evaded ＝ (the Amount of Assessed Income Basic Tax － the Amount of Income the Basic Tax Assessed in respect of the Declared Amount of the Basic Income) × [the Portion of the Amount of Income Taxable and Exemptible from Fine included in the Amount of Income Basic Tax Omitted or Evaded ÷ (the Amount of Assessed Basic Income － the Amount of the Basic Income Assessed in respect of the Declared Amount of Such Income)]

These Enforcement Rules shall take effect on 1 January 2006, except for the provisions set forth in Article 18 hereof, which shall take effect on 1 January 2007; and the portion of the provisions requiring the addition of the amount specified in Subparagraph1, Paragraph 1, Article 12 of the Act and the provisions as set out in Article 15 of the Act and Paragraph 1, 2 of Article 14 of the Act shall take effect from the enforcement date as specified in Subparagraph 1, Paragraph 1, Article 12 of the Act.
The amended articles of the Enforcement Rules shall take effect on the date of promulgation. The amended provisions of Articles 5, 12 and 18 of the Enforcement Rules with the date of promulgation on 2 November 2012 shall be implemented in fiscal year 2013.The amended provisions of Articles 12, 14 and 18 of the Enforcement Rules with the date of promulgation on 13 June 2018 shall take effect on 1 January 2018. The amended provisions of Subparagraph 12, Article 3 of the Enforcement Rules with the date of promulgationon 22 February 2022 shall take effect on 1 January 2022, Article 5 of the Enforcement Rules shall take effect on 1 July 2021, and the Article 14 of the Enforcement Rules shall take effect on 1 January 2021.

Note: In case of any discrepancy between the English version and the Chinese text of this Act, the Chinese text shall govern.