Where a Biotech and Pharmaceutical Company has invested in brand-new machinery, equipment or system, for such investment amount of between NT$10 million and NT$1 billion spending in the same taxable year, it may select one of the following methods for crediting the funds so invested by it against the profit-seeking enterprise income tax payable in the taxable year. Once the Biotech and Pharmaceutical Company selects a method, it cannot change its selection, and the creditable amount shall not exceed thirty percent (30%) of the profit-seeking enterprise income tax payable by it in the then-current year:
1. Up to five percent (5%) of the annual investment amount may be credited against the profit-seeking enterprise income tax payable by it in the then current year from the first year the Biotech and Pharmaceutical Company has payable profit-seeking income tax; and
2. Up to three percent (3%) of the annual investment amount may be credited against the profit-seeking enterprise's income tax payable in each of the three years from the first year the Biotech and Pharmaceutical Company has payable profit-seeking income tax.
Where the Biotech and Pharmaceutical Company referred to in the preceding paragraph is eligible for the investment credit under the preceding paragraph as well as other types of investment credit in the same year, the total amount creditable in that year shall not exceed fifty percent (50%) of its profit-seeking enterprise income tax payable in the then-current year, unless the then-current year is the final year for using such credit.
The Biotech and Pharmaceutical Company referred to in the preceding paragraph applying for the investment credit under Paragraph 1 shall submit an investment proposal capable of generating certain effects to the Competent Authority for approval on a case-by-case basis. Each Biotech and Pharmaceutical Company may apply for such investment credit only once in each taxable year.
The regulations governing the scope of eligibility for the tax credit for investment identified in the preceding three paragraphs, the investment proposal capable of generating certain effects, the application deadline, the application procedure, calculation of the total creditable amount in the then-current year, and other relevant matters shall be prescribed by the Competent Authority in conjunction with the Ministry of Finance.