To promote the development, production, and distribution of intellectual property related to Taiwan’s locally produced cultural content, companies or limited partnerships making a cash investment for a period of at least two years in a cultural and creative company or limited partnership within a defined scope and having been designated by the Executive Yuan as being in a nationally strategic cultural and creative industry, in so doing becoming the registered shareholder or partner of said cultural and creative company or limited partnership, may, every year for a period of five years, deduct 20 percent of the invested amount or cost of the shares in the cultural and creative company or limited partnership from their business tax. The total amount deducted every year may not exceed 50 percent of the total business income tax of the company or limited partnership.
For cases wherein a company or limited partnership makes a cash investment in the aforementioned cultural and creative industry enterprise of a defined scope and this is approved by the central Competent Authority, where an investor has not deducted the total amount of its original investment within two years of the date of investment, it may, each year for a period of five years, deduct 20 percent of the investment amount from the total business income tax. The total amount deducted each year may not exceed 50 percent of the total business income tax of the company or limited partnership.
For cash investments mentioned in the preceding two Paragraphs that involve venture capital companies or limited partnerships, shareholders or partners may, in line with the stipulations of the preceding two Paragraphs, consider the deductible amount based on their shareholding or investment amount percentage to calculate their deduction for investment. Where a venture capital business becomes the registered shareholder or partner of a cultural and creative business or limited partnership, or invests in a nationally strategic cultural and creative industry, for five years starting from the third year, it may deduct the calculated amount from the annual business income tax. The total amount deducted each year may not exceed 50 percent of the total business income tax.
Where companies or limited partnerships combine the investment deductions defined in the preceding three Paragraphs or other investment deductions stipulated in other laws in the same year, the total amount deducted for investment may not exceed 50 percent of the total business income tax for that year. This limitation shall not apply where other laws stipulate that a given year is the last year where a deduction may be taken and therefore that there are no limits on deductible amounts.
For Paragraphs 1 and 2, companies or limited partnerships, and for Paragraph 3, venture capital companies , guidelines addressing the scope of use as well as eligibility criteria, deduction rate (percentage), application period, application procedure, methods of calculation, and other related matters concerning the investment deduction criteria, defined scope, cultural and creative company or limited partnership, nationally strategic cultural and creative industry shall be drafted by the central Competent Authority in conjunction with the Ministry of Finance.
The stipulations of Paragraph 1 through Paragraph 3 shall be in force for 10 years.