Interpretation on relevant requirements for the exemption of business taxes on revenues generated by schools from industry-academic cooperation (Taiwan)

Tiffany Hsiao

The Ministry of Finance issued the Tai-Cai-Shui-10700704180 Circular of January 8, 2019 (hereinafter, the “Circular”) to interpret the requirements for exempting business taxes on revenues generated by schools for industry-academic cooperation conducted in accordance with the subparagraphs of Article 3 of the Rules for Implementing Industry-Academic Cooperation by Schools above Junior College.

It was first pointed out in this Circular that for revenues from special topic research, inspection and testing or technical services, business taxes shall be levied pursuant to law except when business taxes are exempt pursuant to the Tai-Cai-Shui-09900331970 Directive of November 23, 2010 from the Ministry of Finance.

In addition, revenues from exchange of materials, consultation and advisory services, patent application, innovation and incubation shall be subject to business taxes pursuant to law.

Furthermore, revenues from technology transfers and utilization of intellectual property rights shall be subject to business taxes pursuant to law after January 1, 2019.

Finally, fees charged from people receiving education with respect to all kinds of talent cultivation shall be exempt from business taxes pursuant to Article 8, Paragraph 1, Subparagraph 5 of the Value-added and Non-value-added Business Tax Law.

In addition, the Tai-Cai-Shui-7554812 Circular of July 29, 1986 from the Ministry of Finance was abolished.