CHAPTER I
GENERAL PROVISIONS
Article 1
This Statute is enacted for the furtherance of industrial upgrading
and the betterment of economic development.
The
term "industries" as used in this Statute shall refer to
agricultural, industrial and service businesses.
Article 2
This
Statute shall apply to all matters concerning the furtherance of industrial
upgrading. Any such matters not
provided for in this Statute shall be governed by the provisions of other
relevant laws provided, however, that where the provisions of such other laws
are more favorable than those contained herein, the most favorable provisions
shall apply.
Article 3
The
term "company" as used in this Statute shall refer to a company
incorporated under the Company Law.
Article 4
The
term "authority in charge of industries" as used in this Statute
shall refer to the Industrial Development Bureau of the Ministry of Economic Affairs at the central government
level, the Bureau of Business Management at the municipal government level, and
the government of Hsien (or city) at the Hsien (or city) level.
Where
any of the matters specified in this Statute involves
the functional duties of an authority in charge of the specific end
enterprise concerned, the authority in charge of the specific end enterprise
shall handle such matter in conjunction with the relevant authorities-in-charge.
CHAPTER II
TAX BENEFITS
Article 5
Service
life of instruments and equipment purchased by a company for exclusive use for
R&D purposes, experiments, and/ or quality control, or machinery and
equipment purchased by a company and used
for energy saving purposes or
employing new and clean energy may be accelerated to two years; provided, however, that if there is any
post-
depreciation
residual value during the accelerated service life,
assets depreciation may continue in one year or several years within the
service life of such assets as specified in the Income Tax Law until
depreciation is fully made.
The
authority approving the accelerated depreciation mentioned in the preceding
Paragraph, the deadline for filing applications, the application procedures and
other relevant matters shall be prescribed by the Executive Yuan.
Article 6
To
meet the requirement for industrial upgrading, a company may credit five to
twenty percent of the amount of funds
disbursed for any of the following purposes against the amount of
profit-seeking enterprise income tax payable in each year within a period of
five (5) years from the then current year:
1. The
funds invested in equipment for automation of production or production
technology;
2. The
funds invested in equipment or technology used for reclamation of resources
and/or pollution control;
3. The
funds invested in equipment or technology used for employing new and clean
energy, energy conservation, or recycling of water for industrial use;
4. The
funds invested in equipment or technology used for the reduction of greenhouse
gas emissions or the enhancement of energy efficiency; and
5. The funds invested in the hardware, software
and/or technology that can promote an enterprise's digital information
efficiency, such as the Internet and television functions, enterprise resource
planning, communication and telecommunication products, electronics and/or
audio visual equipment and digital contents production.
A company may credit thirty-five percent of the amount
of funds invested in R&D and personnel training against the amount of
profit-seeking enterprise income tax payable in each year within a period of
five (5) years from the then current year; provided that if the R&D
expenditure of the then current year is greater than the average R&D
expenditure of the previous two years, or if the personnel training expenditure
of the then current year is greater than the average personnel training
expenditure of the previous two years, fifty percent of the excess amount may
be credited against the amount of profit-seeking enterprise income tax payable.
The
total amount of investment credited against tax in each ensuing year as
referred to in the preceding two Paragraphs shall be limited to a level not
exceeding fifty percent of the amount of profit-seeking enterprise income tax
payable in the then current year; provided, however, that this limitation shall
not apply to the amount to be deducted in the last year.
For
Paragraphs One and Two, the scope of their application, the approving
authority, the deadline for filing applications, the application procedures,
the enforcement period, the tax credit rate and other relevant matters shall be
prescribed by the Executive Yuan.
In
determining the scope of the application of tax credits, the actual capability
level of each industry shall be considered.
Article 7
In
order to promote balanced development of industries in various geographical
areas, if a company makes investment up to a specific amount of its capital or
employs a specific number of employees in specific industries of a county or
township area with scanty natural resources or with slow development, it may
credit up to twenty percent of the total amount of its investment against the
amount of profit-seeking enterprise income tax payable in each year within a period of five (5)
years from the then current year.
The
applicable geographical areas, the applicable sector of industries, the amount
of investment, the number of employees, the approving authority, the deadline
for filing applications, the application procedures, and other relevant matters
as referred to in the preceding Paragraph shall be prescribed by the Executive
Yuan.
Article 8
In
order to encourage the incorporation or expansion of the newly emerging,
important and strategic industries that can generate substantial benefits for
economic development, are of high risks and are in great need of support, an
investor, being a profit-seeking enterprise or an individual, who subscribes to
the registered stock issued by a company within the newly emerging, important
and strategic industries, and has held such stock for a period of three years
or longer, may credit against the profit-seeking enterprise income tax or the
consolidated income tax payable in each year within a period of five (5) years
from the then current year pursuant to the following provisions:
1. A
profit-seeking enterprise may credit up to twenty percent of the price paid for
acquisition of such stock against the profit-seeking enterprise income tax or
the consolidated income tax payable in the then current year.
2. An
individual may credit up to ten percent of the price paid for acquisition of
such stock against the consolidated income tax payable in the then current
year; provided, however, the deductible amount shall be limited to not more
than fifty percent (50%) of the consolidated income tax payable in the then
current year for the individual, with the exception that this limitation shall
not apply to the deductible amount in the last year of said four-year period.
The
tax credit rate of Item 2 of the preceding Paragraph shall be lowered by one
percent every two years since January 1, 2000.
The
scope of application for newly emerging, important and strategic industries,
the approving authority, the deadline for filing applications, the application
procedures, and other relevant matters shall be prescribed by the Executive
Yuan, by consulting representatives of the relevant industries, government
agencies, academia and R&D institutions, and shall be subject to review
once every two years for any necessary adjustment and modifications.
Article 9
A
company within the scope of application for the newly emerging, important and
strategic industries as set forth in the preceding Article may, within two (2)
years from the beginning date for payment of the stock price by its
shareholders, select, with the approval of its shareholders meeting, the application of an exemption from
profit-seeking enterprise income tax and waive the shareholders
investment credit against payable income tax
as set forth in the preceding Article; provided, however, that once the
selection is made, no change shall be allowed.
Where
the investment incentive in terms of an exemption from profit-seeking
enterprise income tax is selected, the following provisions shall govern:
1. In
the case of a newly incorporated company, it shall be exempted from
profit-seeking enterprise income tax for a period of five consecutive years
from the date on which it begins to sell its products or to render services.
2. In
the case of an expansion of an existing company by capital increase, the
company shall be exempted from profit-seeking enterprise income tax leviable on
the increased income derived as a result of such expansion for a period of five
consecutive years from the date the newly added equipment starts to operate or the rendering of services begins;
provided, however, that this incentive shall be applicable only to an
expansion in the form of establishment of additional independent production or
service units, or of an expansion of major production or service equipment.
Where
an eligible company has selected an exemption from profit-seeking enterprise
income tax under Paragraph Two of this
Article, it may, within two (2) years from the date on which it starts
to sell its products or to render services, defer,
at its own discretion, the commencement date of the tax exemption
period. The maximum period of such
deferment shall not exceed four (4) years
from the date on which it starts to sell its products or to render
services. The commencement date of
such deferred tax exemption period shall be the beginning date of a fiscal
year.
Where
a company has re‑invested its undistributed earnings and its capital-increase
plan is within the scope of application set forth in Article 8, Paragraphs Two
and Three shall apply mutatis mutandis.
Article 9-1
For
a science-based industrial company, if the machinery and equipment imported by
it for its own use since January 1, 2002 are not currently manufactured by
local manufacturers as specifically verified by the Ministry of Economic
Affairs, they shall be exempt from import duties and business tax.
In
the event the machinery and equipment imported by a company under the preceding
Paragraph become ineligible for duty-free and tax-reduction benefit, or are not
used for the purpose(s) originally declared as a result of an assignment
thereof or an alteration of the use(s) thereof effected within five (5) years
after their importation, the import duties and business tax previously exempted
or reduced shall be assessed and supplemented accordingly, except that they are
assigned to a company located within a science-based industrial park or an
export-processing zone, or to another science-based industrial company.
The
machinery and equipment which are not currently manufactured by local
manufacturers as set forth in Paragraph One of this Article shall be identified
and verified by the central government authority in charge of industries.
In
case the company referred to in Paragraph One of this Article is a bonded
factory, the raw materials to be imported from abroad by it shall be exempt
from import duties and business tax; provided, however, that if they are
transported out of the bonding area, they shall be subject to supplementary
assessment of the import duties and business tax previously exempted.
Article 9-2
In
order to create sound economic development and to encourage investment in the
manufacturing industries and their associated technology service industries,
the investments to be made, during the period from January 1, 2002 through
December 31, 2003, in the incorporation or in the expansion of a company
engaged in any of such industries may be exempt from the profit-seeking
enterprise income tax in accordance with the following provisions:
1. In
the case of a newly incorporated company, it shall be exempted from profit-seeking
enterprise income tax for a period of five consecutive years from the date on
which it begins to sell its products or to render services.
2. In
the case of an expansion of an existing company by capital increase, the
company shall be exempted from profit-seeking enterprise income tax leviable on
the increased income derived as a result of such expansion for a period of five
consecutive years from the date the newly added equipment starts to operate or
the rendering of services begins; provided, however, that this incentive shall
be applicable only to an expansion in the form of establishment of additional
independent production or service units, or of an expansion of major production
or service equipment.
The company eligible for exemption from
profit-seeking income tax under the preceding Paragraph may, within two
(2) years from the date on which it begins to sell its products or to render
its services, decide to defer, at its own discretion, the commencement date of
the tax exemption period; provided that the maximum period of such deferment
shall not exceed four (4) years from the date on which it begins to sell its
products or to render its services, and that the commencement date of such
deferred tax exemption period shall be the beginning date of a fiscal year.
The
scope of application of the tax exemption benefit for the company referred to
in Paragraph One of this Article, the approving authority, the deadline for
filing an application, the application procedures, and other related matters
shall be defined by the Executive Yuan.
Where
a company referred to in Paragraph One of this Article is already eligible for
application of the investment incentives provided in Articles 8 or 9 of this
Statute, it shall not be entitled redundantly to the application of the
investment incentive provided for in this Article.
Article 10
Where
a company selects an exemption from profit-seeking enterprise income tax
pursuant to the provisions set out in this Statute, the equipment shall be
depreciated, in respective years of the tax exemption period, according to the
service life of fixed assets as provided in the Income Tax Law.
Where
an enterprise that enjoys an exemption from profit-seeking enterprise income
tax transfers, prior to the end of the tax exemption period, to another
enterprise the entire set of manufacturing/service equipment or application
software which can function independently, and the transferee continues to
produce the products or provide the services subject to the investment incentive,
the transferee company may enjoy the remaining part of the original tax
exemption period; provided, that it falls within the scope of application for
the newly emerging, important and strategic industries as set forth in Article
8 after the transfer.
For
the transferee company in the preceding Paragraph, the remaining tax exemption
period shall terminate upon the company's disqualification as a newly emerging,
important and strategic industry after the transfer.
Article 11
Where
a patent right legally obtained by a national of the Republic of China for his
own creation or invention is provided or sold to a company in the Republic of
China for its use, with the approval of the authority in charge of the end
enterprise concerned, fifty percent (50%) of the royalty paid by the company
for use thereof or of the proceeds derived from selling such right to the
company for its use shall be excluded from the amount of his consolidated
income for taxation purposes.
Article 12
In
order to enhance the international competitiveness of domestic industries and
avoid their unbalanced development, the Government shall provide appropriate
assistance and guidance to the nationals or companies of the Republic of China
in making outward (foreign) investments and/or taking part in technical
cooperation projects.
Under
either of the following circumstances, a company may set aside an amount up to
twenty percent (20%) of the total outward investment as reserve to cover any investment
loss upon its occurrence:
1. Where
the outward investment has been approved by the Ministry of Economic Affairs;
or
2. Where
an application for recordation of the investment has been filed with the
Ministry of Economic Affairs after the implementation of such investment in
accordance with the regulations to be prescribed under the provisions of
Paragraph Six of this Article.
Companies
eligible for setting aside the reserve for loss in outward investment as set
forth in the preceding Paragraph shall be limited to those whose total outward
investment represents more than twenty percent (20%) of the total share equity
of the relevant invested enterprise abroad.
If
no loss actually arises within five years after the reserve for loss in outward
investment is set aside in accordance with Paragraph Two of this Article, the
reserve shall be treated as a part of the income in the fifth year.
If
a company as referred to in Paragraph Two of this Article is liquidated for its
income in accordance with the Income Tax Law upon its dissolution,
deactivation, invalidation, merger or assignment, its cumulative balance of the
reserve for loss in outward investment shall be treated as its income of the
then current year.
Regulations
governing the measures for providing assistance and guidance to investors of outward
investment or technical cooperation projects under Paragraph One of this
Article, and the conditions, procedures, and other requirements a company has
to observe in filing an application for approval and recordation of its outward
investment under Paragraph Two of this Article shall be prescribed by the
Ministry of Economic Affairs.
Article 13
Where
a non‑resident individual or a non‑resident profit‑seeking enterprise, having
been approved to make investment in the Republic of China under the Statute for
Investment by Overseas Chinese or the Statute for Investment by Foreign
Nationals, receives dividend distributed by a company located in the Republic
of China or profit distributed by a partnership in the Republic of China, the
income tax payable thereon by such individual or enterprise shall be withheld
at the time of payment thereof by the tax withholder as specified in the
Income Tax Law at the rate of twenty percent (20%) of such distribution, and
the provisions provided in the Income Tax Law for filing income tax return
shall not apply.
Where
a non‑resident individual, having been approved to make investment in the Republic
of China under the Statute for Investment by Overseas Chinese or the Statute
for Investment by Foreign Nationals, holds the position of director,
supervisor, managerial officer of the enterprise in which he invests, the
provisions of the preceding Paragraph shall apply to the dividend distributed
to him by said invested enterprise, if he has resided in the Republic of China
for operating or managing the enterprise in which he invests for more than 183
days in a taxable year as prescribed in Item 2, Paragraph Two, Article 7 of the
Income Tax Law.
Article 14
Where
a foreign profit‑seeking enterprise, having been approved to make investment in
the Republic of China under the Statute for Investment by Overseas Chinese or
the Statute for Investment by Foreign Nationals, has dispatched its directors,
managerial officers or technical personnel to the Republic of China for performing
temporary work such as investment implementation, plant construction or market
survey, and has made them reside in the Republic of China for a period of not
more than 183 days in aggregate in a taxable year, their salaries paid outsides
the Republic of China by said foreign profit‑seeking enterprise shall not be
considered the income sourced in the Republic of China.
Article 14-1
For
any foreign profit-seeking enterprise or its branch office within the territory
of the Republic of China, which sets up, by its own or through a local
profit-seeking enterprise on its behalf, a logistic and distribution center
within the territory of the Republic of China to be engaged in the storage of,
elementary processing, and delivery of products supplied by the foreign company
to its customers located in the Republic of China, the income derived from such
activities shall be exempted from profit-seeking enterprise income tax.
Regulations
governing the scale of a logistic and distribution center, the scope of the
application, the qualification requirements, and the application procedures to
be observed as referred to in the preceding Paragraph, the examining and
approving authority; and other relevant rules and requirements related thereto
shall be prescribed by the Executive Yuan.
Article 15
Where
a company is specifically approved by the Ministry of Economic Affairs to merge
with another company for purposes of promoting reasonable operation, the
following provisions shall govern:
1. All
stamp tax, deed tax, securities transaction tax and business tax payable as a
result of such merger shall be exempted.
2. Where
the land owned by an enterprise is transferred along with a merger,
registration shall be made for the transfer of the ownership of the land
immediately after the then current value of the land has been duly assessed in
accordance with the law; the land‑value increment tax payable may be charged to
the account of and payable by the enterprise surviving after the merger at the
time the land is further transferred.
Upon bankruptcy or dissolution of the surviving enterprise, the land‑value
increment tax previously charged to its account shall be paid in priority over
all other debts.
3. Where
machinery and equipment owned by an enterprise are sold in accordance with an
approved merger plan, the proceeds realized from such sale which are
subsequently used in whole for purchase of new machinery and equipment under
the merger and consolidation plan, shall be exempted from stamp tax.
4. Where
the land and plant buildings owned by an enterprise as factory site and/or
mining district is sold in accordance with an approved merger plan, the
proceeds realized from such sale which are subsequently used in whole for
purchase or acquisition of new land and plant buildings under the merger and
consolidation plan, shall be exempted from deed tax and stamp tax payable by
the enterprise.
5. If
as a result of a merger, the land owned by an enterprise as factory site is
sold and other land is purchased for construction of plant buildings within an
industrial district, or within the industrial district subject to urban
planning, or within an industrial zone established pursuant to the Statute for
Encouragement of Investment prior to the effective date of this Statute, and
the price paid for such land is in excess of the selling price of the original
land less the land‑value increment tax paid, then for such deficit amount for
the purchase of the new land, the enterprise may request the competent tax
collection authority to refund, to the extent of such deficit, the amount of
land‑value increment tax already paid.
6. The
provisions in the preceding Item 5 shall apply, mutatis mutandis, to the case where the purchase of land for
construction of factory has to be effected prior to the sale of the land of
original factory in order to satisfy the needs of production operation.
7. The
goodwill generated from a merger may be amortized within fifteen (15) years.
8. The
expenses incurred from a merger may be amortized within ten (10) years.
The
sale and acquisition of machinery and equipment, land and plant buildings as referred
to in Items 3 to 6 of the preceding Paragraph shall be completed within two
years starting from the date of merger and consolidation.
Where
companies merge in accordance with Paragraph One, the surviving company or the
new company may assume the tax incentive enjoyed under the law by the
dissolving company to the extent of any exemption period not yet expired or
credit not yet fully deducted prior to the merger. However, for an exemption of profit-seeking enterprise
income tax, the surviving company shall continue to produce the products or
provide the services eligible for the investment incentive and such exemption
shall only apply to the income derived from the dissolving company's products
or services that are independently manufactured or provided and eligible for the
investment incentive. For the
investment tax credit, the credit shall be limited to the amount of tax payable
by the surviving company or a newly created company due to the merger that can
be imputed to the dissolving company.
If
a profit-seeking enterprise organized in the form of a company, with respect to
years in which losses were sustained and deduction therefor were claimed, has
maintained a complete set of relevant accounting records, books and supporting
vouchers, used the blue tax return declaration form as specified in Article 77
of the Income Tax Law or its records and books have been audited and certified
by a certified public accountant, and made timely filing of income tax returns
and payment of profit-seeking enterprise income tax due, then the surviving
company or the newly incorporated company after the merger may, when filing its
profit-seeking enterprise income tax return, have the losses sustained within
five (5) years prior to the year of the implementation of the merger by all
participating companies in the merger and duly approved by the competent
taxation authority, but which have not been offset against their operating
earnings, deducted in proportion to the amount of the equity shares of the
surviving company or the newly incorporated company held respectively by the
shareholders thereof from the net operating earnings declared in each taxing
year within five (5) years from the year of occurrence of such losses.
The
procedure and the deadline for application, and the criteria for examining the
application and the rules governing other matters related to a merger as
referred to in Paragraph One shall be prescribed by the Ministry of Economic
Affairs.
Article 16
Where
a company re-invests, for purposes of operation adjustment, with its independently-functioning manufacturing/
services equipment and the land upon which such equipment is located, the land‑value
increment tax payable may be charged to the account of the investing company by
the percentage of shares held by the investing company; provided, however, that
the invested enterprise continues to manufacture or provide the original
products or services as its main business, or manufactures or provides higher
value-added products or services than the original ones, that the investing
company holds forty percent (40%) or more of the shares of the invested
enterprise, that the payable land‑value increment tax attributable to the
re-investment is secured by a collateral provided by the investing company
pursuant to Article 11-1 of the Tax Collection Law, and that the government of
the municipality or of the Hsien (or city) where the land is located gives its
approval according to the local regulations.
The
investing company as referred to in the preceding Paragraph shall pay the
deferred land‑value increment tax in the event the investing company holds less
than forty percent (40%) of the shares of the invested enterprise, or that the
invested enterprise further transfer the land to a third party, or that the
invested enterprise discontinues to manufacture or provide the original product
or services as its main business or to manufacture or provide higher value-added
product or services than the original ones.
Article 17
In
case a company sells or transfers the land of its original factory site when
moving its factory to an industrial district, or an industrial district subject
to urban planning, or a designated industrial zone established pursuant to the
repealed Statute for Encouragement of Investment prior to the effective date
of this Statute on account of any of the following reasons, the land‑value
increment tax payable by the company shall be assessed at the lowest tax rate:
1. The
use of the original factory land becomes non-conforming to the zoning rules as
a result of implementation of an urban planning or regional planning;
2. In
order to meet the requirement for pollution control, public safety, or maintaining
natural landscape, the company has taken initiative to apply for relocating its
factory, and such application has been approved by the competent authority; and
3. The
factory is relocated under the guidance initiated by the government.
If
a company sells its factory land within three years after relocating its
factory in accordance with the provision of the preceding Paragraph, the
reduction in land‑value increment tax on the original factory land sold or
transferred prior to the factory relocation shall be made up by the company
through supplemental taxation.
Article 18
The
appreciated value of assets of a profit‑seeking enterprise resulting from
revaluation of assets made in accordance with the Income Tax Law shall not be
considered taxable income.
Article 19
Where
the premium on stock issued by a company in accordance with the Company Law is
set as the reserve of the company, the amount of such premium shall be excluded
from the profit‑seeking enterprise taxable income in the then current year.
Article 19-1
In
order to encourage employees' participation in the operation and management of
a company and to allow them to share the profit therefrom, if any employee has
contributed his/her bonus as a part of the equity capital increased by the company,
then the newly issued registered stock acquired by the employee shall be
subject to the income tax only to be assessed based on the par value of such
stock.
Article 20
A
government-sponsored R&D project contracted to a profit-seeking enterprise
is exempted from business tax.
A
profit-seeking enterprise may apply with the competent tax collection authority
for approving a waiver of the tax exemption provided in the preceding
Paragraph; provided, however, that the enterprise may not apply for a change
within three years after the approval.
Article 20-1
In
order to stimulate trading in the securities exchange market and facilitate the
fund raising by enterprises, trading in corporate bonds and financial bonds
shall be exempted from securities transaction tax.
CHAPTER III
ESTABLISHMENT AND UTILIZATION
OF DEVELOPMENT FUND
Article 21
The
Executive Yuan shall establish a development fund and make use of such development
fund for the following purposes:
1. To
participate in the investment in important enterprises, projects, merger,
acquisition and/or demerger relating to industrial upgrading or improvement of
industrial structure which are beyond the capability or financial ability of
private investors;
2. To
provide financial facilities to important enterprises, projects, merger,
acquisition and/or demerger relating to industrial upgrading or improvement of
industrial structure but with insufficient capital;
3. To
provide loans in line with the government industrial policy for assisting the
sound development of industries;
4. To
set aside an appropriate percentage of the development fund in support of
projects relating to providing necessary assistance to the development of
medium and/or small enterprises;
5. To
take cooperative actions in the furtherance of projects initiated by the
competent authorities concerned for acquiring advanced technologies from
abroad, promoting R&D, training personnel, pollution control, acceleration
of improvement of industrial structure and/or betterment of economic development;
6. To
provide loans, in line with the national policy of sustainable development, for
assisting industries' clean production, energy saving, reduction of greenhouse
gas effects and other relevant projects; and
7. Other
purposes as specifically approved by the Executive Yuan.
The
financial source of the development fund shall be the appropriations from
National Treasury. In addition,
the operating balance of the development fund, if any, may be put into the fund
after due budget approval procedures for continuous use.
CHAPTER IV
TECHNICAL ASSISTANCE
Article 22
In
order to introduce or transfer advanced technologies, technical assistance
organizations formed with the contribution of the government shall provide
appropriate technical assistance as required.
The
regulation governing provision of technical assistance as set forth in the
preceding Paragraph shall be prescribed by the Executive Yuan.
Article 22-1
In
order to advance technologies, enhance R&D activities and further upgrade
industries, the relevant central government authorities in charge of end
enterprises may promote the implementation of industrial and technological
projects by providing subsidies to such R & D projects.
The
scope of application of the subsidies, the examining and approving authorities,
the application procedures, the criteria for examining the application and
other matters pertaining to the provision of the subsidies under the preceding
Paragraph shall be prescribed by relevant central government authorities in charge
of end enterprises.
CHAPTER V
ESTABLISHMENT OF INDUSTRIAL DISTRICTS
Article 23
For
the furtherance of industrial upgrading, the central authority in charge of
industries may, according to the requirements of industrial development and
taking into account the social, economic and
actual conditions of various areas, consult with the authorities in
charge of consolidated development plan and regional plan to formulate a
program for the establishment of industrial districts and submit the same to
the Executive Yuan for approval.
The
authority in charge of industries, the public or private enterprise making
investment in the development of an industrial district, the land-owner and the
industrial entrepreneur concerned may,
pursuant to the industrial district establishment
program, select, based on their survey, the land in specific areas,
prepare a feasibility report and the documents required by the Environment
Impact Assessment Law, and submit the same, through appropriate channels, to the central authority in charge of industries for
its forwarding to the central
authorities in charge of regional/urban planning and environmental
protection for their consent of the proposed industrial district development
plan. After the proposal is approved by the Ministry of Economic
Affairs, the land so selected may thus be designated as an industrial
district. The municipal or the
Hsien (or city) government having jurisdiction over such industrial district
shall then be authorized to announce, per a
public notice, the designation of the industrial district within a
specific time limit. If such local
government fails to make the public announcement within the given time limit,
the central authority in charge of industries shall make such public announcement
directly.
For
examining the feasibility report under the preceding Paragraph, the central
authority in charge of regional/urban planning activities may charge the
applicant an examination fee at the rate to be fixed by such central authority.
Where
the industrial district selected is located within the scope of urban planning
and requires an alteration of the original urban planning, a time limit shall
be fixed for completing said alteration in accordance with the procedures
provided for in the Urban Planning Law.
Where
continuous existence of a designated and developed industrial district is no
longer required due to environmental changes, the authority in charge of
industry may request the Ministry of Economic Affairs through appropriate
channel, to annul the designation of such industrial district; upon approving
such application, the Ministry of Economic Affairs shall cause the local
municipal or Hsien (or city) government concerned to announce, per a public
notice, the annulment of the designation of such industrial district within a
specific time limit. If the
competent local authority fails to make such public announcement as required,
the central authority in charge of industries may make the public announcement
directly. The provisions of this
Statute shall no longer be applicable to the industrial district from the date
of the public announcement of annulment.
Notwithstanding the foregoing, if the annulment mentioned above involves
an alteration to the land zoning plan, the announcement of annulment may be
made only after the authority in charge of urban development plan or land
zoning plan approves the annulment pursuant to the law.
Before
annulling the designation of an industrial district under the preceding
Paragraph, the public and private enterprises, the owners of the land and the
industrial entrepreneurs who have invested in the development of industrial
districts, and the land users within the industrial district shall be given an
opportunity to express their respective opinions.
The
criteria for identifying the environmental changes that may nullify the
continuous existence of a designated industrial district under Paragraph Five
of this Article shall be prescribed by the Ministry of Economic Affairs. For approving or annulling the designation
of an industrial district, the Ministry of Economic Affairs shall invite
authorities concerned to form an industrial district designation/annulment
review panel.
Article 24
When
the authority in charge of industries has decided to develop an industrial
district, the government of the municipality or of the Hsien (or city)
concerned shall make a public announcement for suspension of any title transfer
of the land and buildings and for suspension of accepting any application for
factory construction in said industrial district. For a factory the establishment of which has been approved,
but not yet commenced, its factory construction plan may be implemented only
after a concurrence has been obtained from the authority in charge of
industries.
The
period of suspension of transfer of ownership of land and buildings and
application for factory construction shall not be longer than two years.
Article 25
In
order to effect the development of an industrial district, the authority in
charge of industries may apply for expropriation of private land in accordance
with the law.
Article 26
When
implementing an industrial district development plan, the authority in charge
of industries may, based on the purpose and nature of the industrial district
to be developed, permit the original owner of the land expropriated to have the
priority in purchasing the land within the industrial district, exclusive of
the land designated for communities.
Where
the area of a piece of land to be purchased by an original land owner is smaller than the minimum unit
area of land area computation, the land owner shall file a land combination
application within a pre-established time limit. Failure to file the application within such time limit shall
be deemed a waiver by the land owner.
When
the original land owner exercises his/her right of priority in purchasing the
land within an industrial district under this Statute, the provisions of
Paragraph One, Article 55 of this Statute shall not apply.
Regulations
governing the percentage, the zoning, the purchase price of the land within an
industrial district which may be purchased preferentially by the original land
owner concerned, the purchasing procedure, the time limit as referred to in
Paragraph Two of this Article and other related matters shall be prescribed by
the Ministry of Economic Affairs.
Article 27
Where
public land is required by the authority in charge of industries for
development of an industrial district, the authority administering such public
land may provide such land as required without being subject to the
restrictions provided for in Article 25 of the Land Law.
A
compensation for the value of public land provided for development purpose
under the preceding Paragraph shall be calculated at the same compensation rate
for the private land which is located in the area of the same land value, used
for the same purpose and expropriated for development of the same industrial
district. However, if the entire
land in the industrial district under development is government-owned, the
value of such land shall be determined in accordance with the evaluation
standard applicable to the disposition of public property.
The
contract of tenancy of any leased farmland, either government-owned or private
land, shall be terminated when such land is used for development of an
industrial district. Upon
termination of the contract of tenancy, an amount equivalent to one-third of
the compensation for land value shall be paid to the original tenant of the
farmland as compensation, in addition to the cost of the improvement of the
farmland and compensation for the unharvested crops payable to the tenant.
With
regard to the government-owned farmland made available for use by private
settlers within an industrial district, the government of the municipality or
of the Hsien (or city) concerned shall, at the time of development of said
industrial district, notify the original settler to make full payment of the
land value within a given time limit for acquisition of the land. After the ownership of such land is
acquired by the settler, the land shall be subject to the provision of Article
25 hereof. Should the settler fail
to make full payment of the land value within said time limit, the government
of the municipality or of the Hsien (or city) concerned shall make the payment
on his behalf, and the payment so advanced shall be deducted from the
compensation for land value payable to the settler.
Article 28
Where
a public or private enterprise or an industrial entrepreneur making investment
in the development of an industrial district has a need to use the industrial
land previously designated under the repealed Statute for Encouragement of
Investment or the private land within an industrial district designed under
this Statute, the investor may negotiate directly with the owner of such land
for purchase of the land required; provided, however, that if the land purchase
arrangement cannot be consummated due to the lack of registration of property
succession upon death of the private land owner or upon death of the
administrator of the clan property of an ancestral shrine, or any other special
causes, an application for land expropriation may be filed with the local
authority in charge of industries; and under such circumstances, the provisions
of Paragraph One, Article 51 and Article 54 of this Statute shall apply mutatis mutandis.
A
public or private enterprise or an industrial entrepreneur eligible for filing
an application for land expropriation under the preceding Paragraph shall be
limited to a company duly incorporated under the Company Law.
Article 29
The
land within an industrial zone, which is developed by authorities in charge of
industries, a public or private enterprise, or the land owner, may be planned
for the following uses in accordance with its purpose and nature:
1. Land
for manufacturing enterprises.
2. Land
for the relevant industries.
3. Land
for communities.
4. Land
for public utilities.
5. Land
for other purposes approved by the central authority in charge of industries.
The
area of land for communities shall not be greater than ten percent (10%) of the
area of the overall industrial district.
The
area of land for public utilities shall not be less than thirty percent (30%)
of the area of the overall industrial district; the area of land for greenbelt
shall not be less than 10 percent (10%) of the area of the overall industrial
district.
The
areas of land for production enterprises shall not be less than fifty percent (50%)
of the area of the overall industrial district after setting aside the land for
public utilities and communities.
Article 30
The
planning of the industrial district land may be modified, based on policies,
industrial development or the necessity to update, by the authority in charge
of industries, which modification may not contravene the preceding Article.
The
provisions set out in the preceding Article shall not apply to the industrial
districts that have been designated prior to December 31, 1999.
Regulations
governing the modification of land use as referred to in the preceding two
Paragraphs shall be prescribed by the Ministry of Economic Affairs and the
Ministry of the Interior.
For
examining an application for modification of land use proposal, the authority
in charge of industries may charge the applicant an examination fee at the rate
to be fixed by such central authority.
Article 31
A
public or private enterprise or the land owner making investment in the
development of an industrial district and applying for development of a
designated industrial district shall prepare a business plan, a development
plan, a statement of source of development fund, a cost estimate and a land
disposition plan, and file these documents along with a written application
with the Ministry of Economic Affairs for approval; provided, however, that in
case the development plan is not implemented within two (2) years from the day
following the date of approval of the proposed usage of the land required, the
approval shall become null and void, and the originally designated usage of the
land shall be reinstated.
Where
the greenbelt land made by a public or private enterprise or the land owner
making investment in the development of an industrial district in accordance
with Paragraph 3, Article 29 is located outside the scope of urban planning,
such greenbelt land shall be designated as a state-owned preservation land
through an alteration of the original urban planning by the government of the
municipality or of the Hsien (or city) where the land is located.
A
public or private enterprise or the land owner making investment in the
development of an industrial district shall make a monetary contribution
equivalent to five percent (5%) of the value of the total area of the
designated industrial district according to the published current value of the
land, to the industrial district development fund established by the local of
the government of the municipality or of the Hsien (or city) where the land is
located, prior to the public announcement of the designation by such
government.
Where
a donation of land has not been completed before December 31, 1999, the
developer may select to donate greenbelt land under Paragraph 2, Article 26-2
of this Statute before its December 31, 1999 amendment, or pay the monetary
contribution in accordance with the preceding Paragraph; provided, however,
that in the event there is any change in the feasibility planning after the
application of the preceding Paragraph is selected, a written application shall
be filed with the Ministry of Economic Affairs for prior approval.
Article 32
An
industrial entrepreneur who has applied for designation of an industrial
district under Article 23 shall obtain a construction permit within four years
from the public announcement of the designation, failing which the designation
shall be invalidated and the land shall be restored to its originally
designated use.
An
industrial entrepreneur shall install or construct appropriate environmental
protection facilities, the necessary services facilities, and greenbelt land
the area of which shall not be less than ten percent (10%) of the overall
industrial district.
Where
the greenbelt land reserved under the preceding Paragraph is located outside
the scope of urban planning, it shall be designated as a state-owned
preservation land through an alteration of the original urban planning by the
government of the municipality or of the Hsien (or city) where the land is
located.
Where
two or more industrial entrepreneurs jointly apply for designation of an
industrial district, the land for public utilities shall be included in the
planning to which Paragraph Three, Article 29 and Paragraph Two of the
preceding Article shall apply mutatis
mutandis.
In
case an industrial entrepreneur proceeds, for the first time, to lease or sell
a part of the land to another person or the entire land to several parties, the
land planning for the land designated for public facilities under the preceding
Paragraph shall apply mutatis mutandis.
An
industrial entrepreneur engaged in the development of an industrial district
shall make a monetary contribution equivalent to five percent (5%) of the land
value of the total area of the designated industrial district according to the
published current value of the land, to the industrial district development
fund established by the local of the government of the municipality or of the
Hsien (or city) where the land is located, prior to the public announcement of
the designation by such government.
Where
a donation of land has not been completed before December 31, 1999, the
developer may select to donate the land in accordance with Paragraph Three,
Article 26-2 of this Statute before its December 31, 1999 amendment, or pay the
monetary contribution in accordance with the preceding Paragraph; provided,
however, that in the event there is any change in the feasibility planning
where the application of the preceding Paragraph is selected, a written
application shall be filed with the Ministry of Economic Affairs for prior
approval.
Article 32-1
Where
the land designated as an industrial district is located on a reclaimed land,
the public or private enterprise, the land owner or the industrial entrepreneur
making investment in the development of the industrial district shall submit an
implementation and management plan for land reclamation to the Ministry of
Economic Affairs for its examination and approval. Upon approval of such plan, the applicant shall, before
implementing such plan, provide a development bond and enter into a development
agreement with the central authority in charge of industries.
For
examining the development plan set forth in the preceding Paragraph, the
Ministry of Economic Affairs shall charge the applicant an examination
fee.
The
development bond to be paid by the applicant under Paragraph One of this
Article may be refunded to the applicant after the applicant has fully
implemented the implementation and management plan for land reclamation and the
development agreement to the satisfaction of the central authority in charge of
industries.
Regulations
governing the contents of the implementation and management plan for land
reclamation, the documents to be submitted by the applicant, the application
examination procedure, the amount and the payment method of the development
bond as referred to under Paragraph One of this Article 32-1, the rates of the
application examination fee to be charged under Paragraph Two of this Article,
and other related matters shall be prescribed by the Ministry of Economic Affairs.
Article 33
The
sale of the public land within a designated industrial district, which is
applied for by a public or private enterprise, the land owner or an industrial
entrepreneur making investment in the development of the industrial district, shall
be conducted by the authority administering the public land. A public land the
area of which is less than ten percent (10%) of the overall industrial district
or is less than five hectares
is not subject to the limitation under Article 25 of the Land Law.
The
sale price of the public land under the preceding Paragraph shall be determined
by the authority administering the public land in accordance with the
evaluation standard applicable to the disposition of public property.
Article 34
The
land for community in an industrial district developed by the authority in
charge of industries may be disposed of in any of the following manners:
1. To
allocate and sell such land to the owners whose land in the industrial district
has been expropriated;
2. To
allocate and sell such land to the owners whose buildings in the district have
been expropriated provided that such owners have completed household
registration prior to the public announcement date of the suspension of
ownership transfer;
3. To
sell the land for construction of residential houses and provide the houses for
use, on a priority basis, by employees working in the industrial district; or
4. With
regard to the residual land, if any, left unused after disposal of the land for
community in the manners set forth in the preceding three Items, if the width
and depth thereof are smaller than the minimum required of a useful
constructional land, such residual land may be sold to the owner of the land
adjacent thereto.
The
selling prices of the community land to be allocated for sale and/or to be sold
under the preceding Paragraph shall be determined in accordance with the
following rules:
1. The
selling prices of the land to be allocated for sale under Item 1 and Item 2 of
the preceding Paragraph shall be calculated based on the costs incurred for
development of the industrial district;
2. The
selling price of the land to be sold under Item 3 of the preceding Paragraph
shall be determined by the authority in charge of industries that develops the
industrial district;
3. The
selling price of the land to be sold under Item 4 of the preceding Paragraph
shall be calculated based on the current land value as publicly announced and
applicable in the period in which the land is sold.
Regulations
governing the sale of land for communities in an industrial district shall be
prescribed by the Ministry of Economic Affairs.
Article 35
For
development of an industrial district, the authority in charge of industries
may, upon its investigation and selection of the land of a specific district,
entrust the application for designation, development, sale and/or lease, and
management thereof to a public or private enterprise.
The
entrustment arrangement for the designation application or development as
referred to in the preceding Paragraph for which the government fund is
allocated in the budget shall be made according to the requirements of the
Government Procurement Law. The entrustment arrangement shall be made through
public selection procedures if the fund is to be furnished by the entrusted
public or private enterprise.
Regulations
governing the designation application, development, sale and/or lease and
management of industrial districts as referred to in Paragraph 1 shall be
prescribed by the Ministry of Economic Affairs.
Article 36
Where
a public or private enterprise entrusted by the authority in charge of
industries to develop an industrial district and the amount of loan borrowed
from a financial institution for such purpose exceeds the limitation set by the
Banking Law on extending credits to a single borrower and/or his/her related
individuals, a special case may be applied for by the financial institution
with the Ministry of Finance.
Article 37
Based
on policies or to meet industrial entrepreneurs’ operational requirements, the
central authority in charge of industries may recommend the Ministry of
Economic Affairs to consult with the Ministry of Transportation and
Communications in seeking an approval of the Executive Yuan for the
construction of an exclusive industrial harbor or exclusive wharfs within an
industrial district designated according to Article 23.
Article 38
For
the delineation of the zone for an exclusive industrial harbor or exclusive
wharfs, the central authority in charge of industries may recommend the
Ministry of Economic Affairs to consult with the Ministry of Transportation and
Communications, the Ministry of the Interior and other relevant agencies, who
may then jointly seek an approval of the Executive Yuan.
For
the designation of an exclusive industrial harbor or exclusive wharfs, the
central authority in charge of industries may recommend that the Ministry of
Economic Affairs and the Ministry of
Transportation and Communications jointly seek an approval of the
Executive Yuan, and make a public announcement upon the granting of an
approval.
Article 39
An
exclusive industrial harbor or an exclusive industrial wharf shall not be used
for any purposes other than those designated for the industrial district.
Article 40
Exclusive
industrial harbors may be constructed and operated by the central authority in
charge of industries, or may be invested, constructed and operated by a public
or private enterprise with the approval of the Ministry of Economic Affairs,
and in the latter case, the public or private enterprise shall own, manage and
maintain such harbors.
For
exclusive wharfs in an exclusive industrial harbor and their associated
facilities and buildings constructed by an industrial entrepreneur, the
entrepreneur may, after completion of construction of the same, acquire the
ownership thereof and manage and maintain the same.
Article 41
When
the Ministry of Economic Affairs approves the investment, construction and
operation by a public or private enterprise with respect to an exclusive
industrial harbor, it shall also prescribe a term for operation and may require
royalty payment from such public or private enterprise.
Matters
relating the requirement of royalty shall be stipulated in the investment and
construction agreement, and the royalty shall be transferred to the Industrial
District Development Fund under the Ministry of Economic Affairs.
Article 42
The
land within an exclusive industrial harbor or exclusive wharf shall be
registered as state-owned land.
However, in the case of an exclusive wharf within an exclusive
industrial harbor or an exclusive industrial wharf which is connected with the
factory site and required for operation of the factory constructed by an
industrial entrepreneur, the land required for such wharf may be rented by the
entrepreneur through an application with the central authority in charge of
industries.
Article 43
The
central authority in charge of industries may terminate the lease agreement and
repossess the land and the associated facilities and buildings within an
exclusive industrial harbor or an exclusive industrial wharf on account of
policy requirement or the lessee’s breach of the investment and construction
agreement.
Upon
the termination of a land lease agreement on account of policy requirement, the
lessee may request a compensation for the associated facilities and buildings
approved and constructed, according to the price assessed by the central
authority in charge of industries upon the completion of construction, less any
depreciation, in addition to the compensation for the business loss to be given
by such central authority.
In
the event the land lease agreement is terminated due to the lessee’s breach of
the investment and construction agreement, there shall be no compensation for
the associated facilities and buildings constructed by the lessee.
Article 44
Navigation
authority may, in case of emergency or special needs, use an exclusive
industrial harbor or facilities of an exclusive industrial wharf, and pay the
charge for such use. The owner of
such harbor or wharf facilities shall not reject such use.
The
use of the facilities as referred to in the preceding Paragraph shall be free
of charge in the event of emergent efforts to save lives or property.
Article 45
Where
an exclusive industrial harbor is constructed and operated by the central
authority in charge of industries, the authority shall collect from users
charges for use of the facilities, the maintenance fees or service fees.
Where
an exclusive industrial harbor is constructed by a public or private enterprise
and is open for uses, the public or private enterprise may collect from users
charges for use of the facilities; the central authority in charge of
industries shall collect from users the maintenance fees or service fees.
Where
an exclusive industrial harbor is constructed by an industrial entrepreneur for
its own use, the central authority in charge of industries shall collect from
users the maintenance fees or service fees.
The
rate and the calculation mechanism of the charges for use of the facilities,
the maintenance fees or service fees as referred to in the preceding three
Paragraphs shall be submitted by the central authority in charge of industries
for the approval by the Ministry of Economic Affairs in consultation with the
Ministry of Transportation and Communications.
Article 46
Where
an exclusive industrial harbor, an exclusive wharf within such harbor, or an
exclusive industrial wharf is invested and constructed by a public or private
enterprise or an industrial entrepreneur, the central authority in charge of
industries may make the following dispositions in the event the construction is
substantially behind schedule or there is substantial deficiency in the
construction quality control:
1. Correction
within a time limit; and
2. For
failure to correct within the time limit or ineffective corrections, order for
immediate stop of construction works in whole or in part, and recommend to the
Ministry of Economic Affairs that the approval for the investment, construction
and operation/management be cancelled
Article 47
Where
an exclusive industrial harbor, an exclusive wharf within such harbor, or an
exclusive industrial wharf is operated and managed by a public or private
enterprise or an industrial entrepreneur, the central authority in charge of
industries may make the following dispositions in the event the operation is
against the approved plan or the use is against the exclusive purposes, in
addition to a fine between 2 million and 10 million New Taiwan Dollars:
1. Correction
within a time limit; and
2. For
failure to correct within the time limit or ineffective corrections, order for
immediate stop of operation in whole or in part, and recommend to the Ministry
of Economic Affairs that the approval for the investment, construction and
operation/ management be cancelled
In
the event the central authority in charge of industries make a disposition as
referred to in the preceding Paragraph, it shall take appropriate measures to
maintain the transportation services, and, if necessary, take over the
operation mandatorily. Regulations
governing the take-over of operation shall be prescribed by the Ministry of
Economic Affairs.
When
the central authority in charge of industries investigates and make a
disposition under Paragraph 1, the police authority, the navigation authority,
the custom and the related authorities shall provide the necessary assistance.
Article 48
The
planning, construction, administration, operation and security of an exclusive
industrial harbor or an exclusive industrial wharf shall, unless otherwise
provided in this Statute, be governed by the provisions set out in Articles 5,
10, 16, 17 to 21, 23 to 26, 29, Paragraph Three of Article 30 Articles 31 to 34
and Articles 37 to 48 of the Commercial Harbor Law mutatis mutandis.
The
central authority in charge of industries may authorize a commercial harbor
management agency to take charge of the administration of an exclusive
industrial harbor or an exclusive industrial wharf.
Article 49
The
Ministry of Economic Affairs and the Ministry of Transportation and
Communications shall draw up the regulations governing the operation and
administration of exclusive industrial harbors and exclusive industrial wharfs,
submit the same to the Executive Yuan for approval, and publicly announce and
implement the same after an approval is granted.
Article 50
When
an industrial district is being developed by the authority in charge of
industries, any existing factories the site of which has not been expropriated
by the government shall bear the costs of development and construction in
proportion to the size of such factory site.
Article 51
The
land or building within an industrial district developed by the authority in
charge of industries may be sold or provided for lease by such authority,
without being subject to the restrictions under Article 25 of the Land Law, the
State Property Law and the local regulations governing the administration of
public property.
Where
the land or building as referred to in the preceding Paragraph is invested by
government fund, it may be provided for use through a lease.
Regulations
governing the lease and/or sale of the land or building within an industrial
district shall be prescribed by the Ministry of Economic Affairs.
Article 52
For
a lease of land as referred to in the preceding Article, the authority in
charge of industries may collect administration fees, the fee schedule of which
shall be prescribed by the Ministry of Economic Affairs.
Article 53
Where
an industrial entrepreneur has a need to use an adjoining land not covered in
an urban planning to expand its existing industry, or to construct an
additional access road or to install pollution control facilities, he shall
first obtain from the authority in charge of industries an approval of an
expansion plan and an area of land required and a certificate of industrial
land before proceeding to purchase or rent the land required and to apply for
alternation of the land use and for alteration registration in accordance with
the law.
An
industry to be expanded in accordance with the preceding Paragraph shall be
limited to the low pollution enterprises as identified by the Ministry of
Economic Affairs.
An
industrial entrepreneur expanding the existing industry according to Paragraph One
under this Article shall re-allocate ten percent (10%) of the overall area of
the land as a greenbelt land. Such
greenbelt land shall be designated as a state-owned preservation land through
an alteration of the original urban planning by the government of the
municipality or of the Hsien (or city) where the land is located.
An
industrial entrepreneur expanding the existing industry in accordance with the
provisions of Paragraph One under this Article shall make a monetary
contribution equivalent to five percent (5%) of the land valued of the total
expanded area of the designated industrial district according to the published
current value of the land, to the industrial district development fund
established by the government of the municipality or of the Hsien (or city)
where the land is located, prior to the alteration of factory registration for
such expansion of factory site.
Regulations
governing examination of industry expansion plans and area of industrial land
required as set forth in the preceding Paragraph One shall be prescribed by the
Ministry of Economic Affairs.
The
use and administration of the land for which a certificate of industrial land
is issued shall be governed, mutatis
mutandis, by the provisions of Article 60of this Statute.
Article 54
The
selling price or rental of the land or building within an industrial district
developed by the authority in charge of industries, as well as the unit cost of
development and construction to be shared by the existing factories within the
district, with the exception of the allocation or sale of community land under
Paragraph 1, Article 34, shall be determined and adjusted by the authority in
charge of industries of the place where the district is located.
The
calculation of rental for the land or building within an industrial district
shall not be subject to the restrictions under Articles 97 and 105 of the Land
Law.
Article 55
Where
the donation of a greenbelt land has not been completed prior to December 31,
1999, the developer may select an industrial district that has been developed
by the authority in charge of industries in accordance with the provisions of
Article 32 of the Statute prevailing before December 31, 1999, and except for
the community land that is allocated and sold, when the land or building within
an industrial district is sold, the purchaser shall pay a monetary contribution
to the industrial district development fund in an amount equivalent to one
percent (1%) of the purchase price of the land or the building concerned.
The
industrial district development fund as referred to in the preceding Paragraph
shall be established by the Ministry of Economic Affairs where the industrial
district is developed by the central authority in charge of industries, and
established by the government of the municipality or of the Hsien (or city)
where the district is developed by the local authority in charge of industries.
Regulations
governing the income, expenditure, custody and utilization of the industrial
district development fund shall be prescribed by the Executive Yuan and the
government of the municipality or of the Hsien (or city), respectively.
Article 56
The
industrial district development fund shall come from the following sources:
1. The
price paid by a purchaser as referred to in Paragraph 1 of the preceding
Article when the land or building within an industrial district is sold;
2. Income
in excess of the cost when the land or building within an industrial district
is sold;
3. Royalty,
administration fees, charges for use of the facilities, maintenance fees and
other service charges paid by users within an industrial district;
4. Administration
fees paid under Article 52;
5. The
balance of account upon the completion of the development of an industrial
district;
6. The
investment return derived from the investment developed by an industrial
district or the participation in the investment in the district-related service
enterprises;
7. Rental
paid by users in an industrial district;
8. Interest
income from loans extended for development of an industrial district;
9. Interest
income of the fund;
10. Monetary
contributions paid under Articles 31, 32, 53, and 70-2;
11. Appropriations
from the fund budgeted by the Government; and
12. Other
related incomes.
Article 57
The
industrial district development fund shall be used for the following purposes:
1. To
participate in the investment in the development of an industrial district or
to extend loans to the development of an industrial district;
2. To
participate in the investment in industrial district related enterprises;
3. To
invest in a public or private enterprise engaged in the development of an
industrial district in line with policy requirements;
4. The
administration fees for the public land and public buildings or facilities
within an industrial district;
5. The
compensation required under Paragraph Two, Article 43 of this Statute;
6. The
operation fund for the industrial district administration agency;
7. The
relevant research, planning and promotion expenses for an industrial district;
8. &n
