Where an individual invests at least NT$1 million in cash in one year in a Biotech and Pharmaceutical Company that is not listed on the Taiwan Stock Exchange or the Taipei Exchange, and acquires the new shares issued thereby and holds such shares for three (3) years, up to fifty percent (50%) of the investment may be excluded from the individual's consolidated income within two years commencing from the third anniversary of such shareholding; provided that the aggregate amount deductible from an individual's consolidated income each year shall not exceed NT$5 million.
Where the Biotech and Pharmaceutical Company described in the preceding paragraph engages in the business activities described in Item (i), Subparagraph 2, Paragraph 1, Article 4 hereof, it is eligible for the tax benefits hereunder only if it is a company incorporated and registered less than ten (10) years ago; where it engages in the business activities described in Item (ii), Subparagraph 2, Paragraph 1, Article 4 hereof, it is eligible for the tax benefits hereunder only if it is a company incorporated and registered less than five (5) years ago.
The qualifications of the individuals, the application deadline, the application procedure, the calculation of the shareholding period, the authority in charge of granting the approval, and other relevant matters under Paragraph 1 hereof shall be prescribed or designated by Competent Authority in conjunction with the Ministry of Finance.