In accordance with the document from National Taxation Bureau, Ministry of Finance, Private Industry-academia Collaboration Projects will need to pay / exempt business tax in accordance with TFT 10700704180. Because many higher education institutions have many questions about this issue, the Ministry of Education will hold workshops with the Ministry of Finance and the Ministry of Science and Technology in both northern and southern Taiwan on March 6 and 11 for clarifying items.
| Income of Industry-academia Collaboration Projects | Budget Resource | Pay / Exempt from Business Tax |
| Specific Project Research | Commissioned Project from Government Units | Exempt from Business Tax |
| Commissioned Project from Private Entities | Pay Business Tax(Note 1) | |
| Commissioned Project from Government Units to private entity and transfer to another private entity | In discussion(Note 2) | |
| Testing and Examination, Technology service | Commissioned Project from Government Units | Exempt from Business Tax |
| Commissioned Project from Government Units to private entity and transfer to another private entity | Pay Business Tax | |
| Commissioned Project from Private Entities | Pay Business Tax | |
| Commissioned Project from Government Units to private entity and transfer to another private entity | In discussion(Note 2) | |
| Income from Material Exchange, Consulting, Innovation Incubation and Patent Application | Commissioned Project from Government Units | Will be decided based on content / In discussion(Note 2) |
| Commissioned Project from Private Entities | Pay Business Tax | |
| Commissioned Project from Government Units to private entity and transfer to another private entity | In discussion(Note 2) | |
| Technology Transfer and Applications of Intellectual Property Rights. | Commissioned Project from Government Units to the Government and researchers | Exempt from Business Tax |
| Commissioned Project from Government Units to educational institution | Pay Business Tax | |
| Commissioned Project from Private Entities and results belong to the education institution | Exempt from Business Tax | |
| Commissioned Project from Private Entities and the results belong to a company | Pay Business Tax | |
| Talent Cultivation for Each Field | No matter whether Commissioned Project is from Government Units or not | Exempt from Business Tax |
Note 1: The most disputed point in the previous workshop were the specific commissioned projects from private entities. The Ministry of Education committed to actively lobby for business tax exemption with the Ministry of Finance; the Ministry of Finance committed to amend the relevant regulations within three months to designate whether the educational institution meets the criteria of the range of Academic and Technology Research Units Approved by the Competent Authority or not in accordance with Clause 31, Article 8. Once the relevant regulations are amended, the Specific Project Research Commission Plans will be included in the range of business tax exemption. The Ministry of Finance also committed not to trace back the business tax during the period of amending the regulations. Please be reminded that all faculty members must use the institutional receipt for the reimbursement of specific project research commission plans from a private entity. Please also indicate clearly who will have rights to the results for all commissioned projects; the equity distribution ratio for technology transfer or patent inventor must be indicated clearly in the contract to avoid any dispute over business tax in the future.
Note 2: Commissioned Projects from Government Units to a private entity and transferred to another private entity will likely be included in the category of Commissioned Projects from Government Units in the future. However, the Ministry of Education and the Ministry of Finance are still discussing this and will announce the result upon confirmation.
