[Taxation] Exempted Income

The following categories of income are exempt from profit-seeking-enterprise income tax: 1.Income derived from the sale of land or the sale of property for the purpose of stockpiling war materials in accordance with government regulations. 2.Income on gains derived from securities transactions (losses on securities transactions are not deductible). 3.Income from futures transactions under the Futures Transaction Tax Act (tax on such transactions is temporarily suspended and losses incurred on such transactions are not deductible in computing taxable income). 4.Business income derived from the operation in Taiwan of a foreign enterprise engaging in international transportation, provided reciprocal treatment is granted by the counterparty foreign country to a Taiwan international transport enterprise operating in its territory. 5.Remuneration paid to a foreign enterprise for technical services rendered for the construction of a production facility for an important manufacturing enterprise as determined and approved by the competent authority. 6.Interest derived from loans granted to the Taiwan government or legal entities in Taiwan by a foreign government or international financial institution for economic development. 7.Interest earned by foreign financial institutions from the financing of resources offered to their branch offices or other financial institutions in Taiwan. 8.Interest derived from loans granted to legal entities in Taiwan by foreign financial institutions for financing important economic construction projects with the approval of the MOF. 9.Interest derived from preferential-rate export loans offered to, or guaranteed for, legal entities in Taiwan by foreign government institutions and foreign financial institutions that specialize in offering export loans or guarantees. 10.Net dividends or net surplus earnings received by a profit-seeking enterprise organized as a company from its investment in another domestic profit-seeking enterprise.