The National Science Council (hereinafter referred to as the "NSC") of the Executive Yuan may, in accordance with this Act, select a suitable site and apply to the Executive Yuan for their approval to establish a science park (hereinafter referred to as "the park") for the purposes of attracting high-tech industries and professionals, encouraging the research and innovation of domestic industries and, enhancing the technology of local high-tech industries.
The establishment and administration of the parks shall be governed by the provisions of this Act. In case of any matter not confined in this Act, the provisions of other related domestic laws shall be applied. If the provisions of other related domestic laws are more favorable to the development of science-based industries than those contained herein, the most favorable ones shall be considered.
The term "science-based industry" in this Act means an enterprise that has been officially approved for establishment in the park for involving in manufacturing, research and development of high-tech industrial products.
The "science-based industry" characterized in the preceding paragraph includes companies or their corresponding local affiliates limited by shares and organized in accordance with domestic Company Law or affiliates of foreign companies with equivalent forms acknowledged by the government of the Republic of China. The investment plans of the enterprises of the "science-based industry" shall conform with domestic industrial development requirements and employ or cultivate preferable amount of local high-tech professionals, in which the investment of research and development shall remain a significant portion of the total combined sales of the company and related R&D equipment and facilities shall be complete. The enrolled park enterprises shall not create any public hazards and shall meet any one of the following requirements:
1. The enrolled park enterprises shall embody full designing capability of manufactured products and undergo integrated product development plans.
2. The products shall pass through initial research and development phase and proceed to continued development and progress.
3. The products shall have potentiality for prospective development and innovation.
4. The enrolled park enterprises shall embody research and development facilities and faculties engaging in high-level of technology innovation, research, and development.
5. The enrolled park enterprises shall bring in and cultivate high-level of science and technology professionals. Higher ratios of R&D investment shall be involved in the process of manufacturing or R&D.
6. The operation of enrolled enterprises shall contribute significantly to domestic economic development or national defense.
The term "park enterprises" in this Act means science-based industries and the business enterprises that have been approved for establishment in the park to provide operational, managerial, and technical services for science-based industries.
In addition to the park enterprises set forth in the preceding paragraph, research institutes or incubation centers may also apply for establishment and operation in the park.
The enterprises enrolled by the incubation centers shall be limited to conducting research and development activities and may not conduct mass production. These enterprises have to be approved in advance by the science park administration and the residential duration thereof may not exceed three years.
Regulations governing establishment and operation of incubation centers shall be prescribed by the NSC.
The NSC shall establish science park administrations (hereinafter referred to as "park administrations") in the science parks to administrate the management of the parks and provide the park enterprises various services.
The organization of each park administration shall be further prescribed by laws.
The park administrations are in charge of the following affairs:
1. Realization of policies, strategies, and plans related to park development.
2. Supervision and administration of park sub-administrations.
3. Establishment examination of park enterprises.
4. Promotion of science and technology research, development, and innovation.
5. Investment bringing in and related advertisements. .
6. Financial planning, steering, and auditing.
7. Market survey of products.
8. Providing operation-related guides and services for park enterprises.
9. Certificate issuance of product inspection results and original manufacturers’ proof.
10. Import and export examination of telecommunications equipment and related permit issuance affairs.
11. Forwarding residential extension applications of foreign employees working at the park enterprises to competent authorities for approvals.
12. Employment permit issuance and related management affairs of foreign or overseas Chinese high-tech professionals or technicians.
13. Certificate issuance of tax deduction or exemption proofs.
14. Matters concerning foreign exchange and foreign trade.
15. Matters concerning smuggling prevention.
16. License issuance of factory and business registration and power utilization approval for industrial purposes.
17. Safety and protection measures.
18. Matters concerning organization and operation of industrial and commercial associations.
19. Matters concerning labor administration, factory safety and sanitation, pollution control, and factory inspection.
20. Matters concerning administration of government properties and revenues.
21. Matters concerning review and alteration of urban development plans, review and reclassification of non-urban land, examination of urban development design plans, land use control, and related construction administration.
22. Matters concerning construction and administration of public facilities.
23. Matters concerning regimentation, development, and administration of community areas.
24. Matters concerning construction, lease, and sales of factory buildings, housing units, and dormitories.
25. Matters concerning technical trainings and collaboration programs between park enterprises and educational institutes.
26. Matters concerning training of science and technology professionals and management of human resources.
27. Matters concerning technical service facilities for general uses.
28. Matters concerning establishment, operation, and administration of warehouses, transportation facilities, and bonds.
29. Matters concerning public welfare.
30. Inspection of business activities and financial conditions of park enterprises.
31. Matters concerning information management, network utilization, and information development at the park.
32. Planning, elevation, execution, and management of environmental protection work at the park.
33. Forwarding relevant certificates, licenses, and permits to competent authorities for approvals regarding the establishment or expansion of park enterprises.
34. Other park related administration and management matters.
Matters set forth from Subparagraphs 8 to 34 in the preceding paragraph are administrated by sub-administrations.
Whereas any matters set forth in Paragraph One under this Article involve any other government organizations, related operation rules or regulations shall be prescribed by the NSC in conjunction with relevant government organizations. The park administration shall be authorized to conduct relevant matters.
The park administration, by collecting the service charges and rents payable for the affairs listed in the preceding Article, shall set up an operation fund for the following uses:
1. The development, expansion, improvement, maintenance, administration, and like affairs of the parks.
2. Matters concerning the operation services of the parks.
3. Other related matters.
Regulations governing receipt and expenditure, keeping, and utilization of the operation fund referred to in the preceding paragraph shall be prescribed by the Executive Yuan.
The NSC shall set up a Park Supervisory Committee, which composes of fifteen (15) to nineteen (19) members including the deputy supervisors, scholars, or experts of the Ministry of the Interior, the Ministry of National Defense, the Ministry of Finance, the Ministry of Education, the Ministry of Economic Affairs, the Ministry of Transportation and Communication, the Environmental Protection Administration, the Department of Health, the National Science Council, and the Council for Economic Planning and Development under the Executive Yuan with the Chairman of the NSC as the Apparent Member and the Convener of the said Committee.
The Park Supervisory Committee shall examine the following matters brought forth by the park administration:
1. Crucial park administration policies and issues.
2. Category and the priority of science-based industries to be introduced.
3. Park investment applications.
The NSC shall forward the examination results of the first two items mentioned in the preceding Paragraph to the Executive Yuan for approvals.
The following matters in the parks will be handled by the branch units of the authorities in charge of the enterprises concerned, under guidance and supervision of the park administrations or sub-administrations:
1. Tax collection matters.
2. Customs business matters.
3. Post and telegram business matters.
4. Power supply, water supply, and the like matters relating to public utilities.
5. Financial business matters.
6. Police and fire brigade matters.
7. Land administration matters.
8. The other matters relating to the services provided by public institutes.
With respect to Subparagraph 4 of the preceding paragraph, the park administration, in order to ensure effective power and water supply in the park, may consult and request the related units to cooperatively make regulations guiding and governing arrangement of water and power supply and demand, early-warning as to supply shortages, and water and power saving so as to effectively plan and governing the supply and demand, early-warning, and saving of water and power.
The NSC may consult and request the education administration authorities to set up experimental high/elementary schools (including kindergartens) and bilingual department(s) or bilingual schools. The qualification requirement of teachers and admission qualification of students of such bilingual departments or bilingual schools shall be prescribed jointly by the Ministry of Education and the NSC.
After an investment applicant receives a grant as to his or her application, the applicant shall pay monetary security or government bonds of the same value in accordance with the regulations prescribed by the park administration for guaranteeing the implementation of the investment. The grant will be revoked if the applicant does not pay monetary security in accordance with the regulations.
The monetary security or government bonds referred to in the preceding paragraph will be refunded with interest upon the complete implementation of the investment plan. In the case of an investment plan that is permitted to carry out in stages, the refunding portion will be commensurate with the implemented investment amount ratio. In the case of an investment that is not carried out in accordance with the investment plan and has been revoked by the park administration, the park administration may confiscate the monetary security or government bonds and may order the applicant to remove from the park.
In the event that any park enterprise does not operate in accordance with its operation plan and has not applied for and secured a permit to delay or modify its operation plan after carrying out its investment plan, the park administration may revoke its investment application and order the applicant to remove from the park.
Regulations governing implementation, completion, delay or modification, cancellation, and like affairs shall be prescribed by the park administration.
The park enterprises shall submit their final account statements, which are duly audited and certified by accountants, to the park administration or the sub-administrations for examination and approval at the end of each business year. Examination of the operating and financial conditions of park enterprises shall undergo in accordance with relevant provisions set out in domestic Company Law.
The park land administered by other government agencies may be requested to transfer to the park administration for uses. Private land located in the park may be expropriated with compensation given at the market price thereof.
For land expropriation characterized in the preceding Paragraph, the park administration shall prepare detailed plans for land expropriation together with an outlined map of the land to be developed along with lists of land to be expropriated and submit to the National Science Council and further forward to the central land authority for approval. The approved items shall be passed to local land authorities of city or county government to proceed related expropriation affairs in accordance with the procedures listed below. Relevant documents resulted shall submit to the central land authority for recordation after the expropriation is complete.
1. Upon receiving the approval of land expropriation, the land authority of city or county government shall forthwith set a date to call upon landowners for negotiation to agree upon the land compensation price. If the agreement cannot be reached, the Land Value Assessment Committee and the Standard Land-value Assessment Committee shall be requested for assessment of the land value.
2. Upon receiving the approval of land expropriation, the land authority of city or county government shall forthwith send a representative to investigate the true condition of the land improvements and the land to be expropriated as the computation basis for the compensatory fees. The landowners or other interested parties may not reject or hinder such investigation.
3. The land authority of city or county government shall publicly announce the approved expropriation within fifteen days after reaching negotiations and agreements, or after the assessment made on the compensation for land prices and the compensatory fees for land improvements. The announcement shall last for thirty days and related notices shall go to all landowners and other title holders of the land. Any landowner or interested person who finds any error or omission in the expropriation or disagrees with the compensation for the land price or compensation fees shall apply for correction or raise objection during the public announcement period. The land authority of city or county government shall consequently forthwith handle the case through investigations or refer it to the Land Value Assessment Committee and the Standard Land-value Assessment Committee for re-assessment.
4. The land authority of city or county government shall notify landowners to submit their title deeds and relevant certificates concerning the expropriated land within twenty days and to accept the land compensation and other related compensatory fees after the public announcement. If any landowner refuses to submit title deeds and related certificates within the specified time limit, such title deeds and certificates shall be declared void and the corresponding land compensation and other compensatory fees shall be deposited in a court according to relevant domestic law.
5. Other titles originally created on the expropriated land shall be extinguished when the expropriation is complete. The value of such titles shall be compensated by the land authority of city or county government out of the compensatory fees when such fees are payable. The balance of the compensatory fees paid to such title owners shall go to the owners of the expropriated land.
6. If the lease agreements in connection with the expropriated farm land expire, the land authority of city or county government shall compensate the tenants thereof for their expenses spent on land improvements and the costs of un-harvested agricultural improvements (crops). Besides, an additional compensation in an amount equal to one-third of the balance of the expropriated land price, with the land value increment tax deducted, shall be paid to the tenants.
7. The land authority of city or county government shall directly effect the registration of land ownership changes when payment of expropriated land compensation and other compensatory fees is complete.
The park enterprises may apply to the park administration for land lease based on individual requirements and shall pay the land rental and share the construction cost of public facilities associated with the leased land.
Government or private organizations or foundations may acquire land within the area specifically defined in the master plan of the Hsinchu Science park, as declared on May 20, 1981, and apply to the NSC for consent and the Executive Yuan for approval of merging the acquired land with the park land in accordance with the provisions of Article 1 of this Act.
At least 30% of the acquired park land invested and developed by government or private organizations or foundations shall be dedicated for public facilities and at least 10% of the acquired park land shall be reserved as greenbelt. The investment and development organizations shall be responsible for corresponding administration and maintenance of the public facilities and greenbelt areas.
The regulations governing the establishment of privately acquired park land in accordance with the provisions of Paragraph One of this Article shall be drawn up and submitted by the NSC to the Executive Yuan for its approval before enforcement.
Government or private organizations or foundations may acquire land adjacent to science parks or specific areas for science parks nearby local cities, towns, or villages after the approval of the NSC. The acquired land can be merged into the scope of science parks after the approval of the Executive Yuan in accordance with the provisions of Article 1 of this Act. Related regulations governing establishment and administration of the acquired park land shall be prescribed and submitted by the NSC to the Executive Yuan for approval before enforcement.
A portion of the park land may be designated for community areas to be developed and managed by the park administration in the progress of park development.
The community areas mentioned in the preceding Paragraph, except the land designated for public facilities and other necessary supporting facilities, may be sold to the original owners of expropriated land or buildings in the park or the original tenants of the expropriated farm land for residential house uses. Related regulations for distribution and sale of such land in the community areas shall be stipulated and submitted by the park administration to the Executive Yuan through reporting channels for approval.
The factory buildings in the park and the dormitories for employees in the community areas may be constructed by park enterprises on their own after obtaining permissions from the park administration or constructed by the park administration or sub-administrations for lease or sale.
The factory buildings and the dormitories for employees mentioned in the preceding paragraph shall be leased or sold to the enterprises established in the park or employees working in the park merely. The prices for sale and rental of the factory buildings, housing units, and dormitories shall be suggested by the construction investors concerned and reported to the park administration for approval. The criteria for setting the rental for factory buildings, housing units, and dormitories may not be governed by the provisions of Article 97 of domestic Land Law.
In principle, transferred private factory buildings in the park shall only be utilized by park enterprises or research organizations that have been officially approved for establishment.
The park administration or sub-administrations may expropriate private factory buildings and related structures at market price under any of the following conditions:
1. The buildings and related structures are not used by an organization that has not been approved for establishment.
2. The buildings and related structures are not properly used.
3. The buildings and related structures are offered for sale at exorbitant prices.
4. The buildings and related structures are used by park enterprises that have been ordered to move out of the park under the provisions of Article 10 of this Act.
When private park buildings are expropriated in accordance with the provisions prescribed in the preceding paragraph, the park administration or sub-administrations may require the owners thereof to evacuate all materials stored in the buildings by notices or remove such materials to other places for storage on behalf of the owners. The owners shall bear the cost thereof and be responsible for whatever damages caused by removals.
The regulations governing expropriation at cost of afore-mentioned private park buildings shall be prescribed by the NSC through consultation with relevant authorities.
Effective from January 1, 2000, the merged park enterprises in accordance with domestic Company Law or surviving or new park enterprises after mergers shall succeed the tax benefits originally enjoyed by the dissolving science-based industry before mergers, which are not yet terminated nor fully offset. As for succeeding the exemption of profit-seeking income tax as investment incentives from the dissolving park enterprises, the surviving park enterprises in the scope of science-based industries under the merger/consolidation projects shall continue to produce the identical products produced or the identical services provided by the dissolving park enterprises and such tax benefits shall apply only to the portion of income derived from products or services independently produced or provided by the original dissolving park enterprises. If the tax is exempted in the manner of investment offset or deduction, such tax exemption shall apply only to the payable tax portion of the surviving or new park enterprises after mergers of the dissolving science-based industries.
The provisions set out in this Article are not applicable to the affiliates defined in Paragraph Two of Article 3 of this Act.
The NSC may request approvals from the Executive Yuan for defining bonded area to provide the convenience of bonding operation.
To ensure the convenience of bonding operation, regulations governing the processing, management of bonded goods within the bonded area referred to in the preceding paragraph, self-inspection of inbound and outbound areas, monthly declaration privileges, clearance, recoverable duty procedures for domestic sales of bonded goods and any other required matters shall be prescribed by the NSC in discussion with the Ministry of Finance.
Regulations governing the import and export trading affairs relating to the park goods shall be prescribed by the NSC in consultation with the authorities concerned.
The import duties, commodity tax, and business tax shall be exempted for self-use machines and equipment imported from abroad by park enterprises. However, the import duties, commodity tax, and business tax shall be collected for those transported to duty-levying areas within five years from the importation.
The import duties, commodity tax, and business tax shall be exempted for raw materials, supplies, fuels, goods-in-process, samples, and finished goods for trading purposes imported from abroad by park enterprises. However, the import duties, commodity tax, and business tax shall be collected, in accordance with the regulations on imported goods, for those transported to duty-levying areas.
For export of products or services by a park enterprise, the business tax rate is zero and commodity tax shall be exempted therefore. However, in the case that it transports products, wasted goods or scraps to duty-levying areas, the import duties, commodity tax, and business tax shall be collected, in accordance with the regulations on imported goods, for those transported to duty-levying areas, except in the case that the products still cannot be produced in the domestic duty-levying area, the import duties, commodity tax, and business tax shall be collected according to the raw materials or parts used therefor. Business tax shall be collected for the services provided in a duty-levying area.
In the event of special causes requiring that bonded goods of a park enterprise be temporarily stored in a duty-levying area, the storage shall be carried out after it has been approved by the administration or sub-administration and the park enterprise has provided Customs with an appropriate bond. The bonded goods shall be transported back in the time limit prescribed by Customs.
A park enterprise shall complete customs clearance, with no need of doing the formalities for exemption, bond, accounting, and payment of a money guarantee, in accordance with the relevant provisions of Customs Law, for the imported goods that are exempted from duties as prescribed in Paragraphs 1 and 2.
The park administration may exempt collection of land rentals for no more than five years from the science-based industries which hold technologies contributing significantly to domestic industrial development.
A park enterprise shall complete customs clearance, in accordance with the relevant provisions of Customs Law, for exporting and importing goods.
Applications for import or export permits may be exempted for the goods referred to in the preceding paragraph, except for those that endorsements or approvals are required therefore.
The machines, equipment, raw materials, supplies, fuels, goods-in-process, and samples sold by sellers of duty-levying areas for self-use of park enterprises shall be treated as exported goods.
In the case that the goods prescribed in the preceding paragraph are re-transported to duty-levying areas, the import duties, commodity tax, and business tax shall be collected, in accordance with the regulations on imported goods.
For machinery, equipment, raw materials, materials, fuels, semi-finished products, samples purchased, no matter from domestic sources or from abroad, by a park enterprise; wastes, scraps, finished products, semi-finished products generated by the park enterprise; and finished goods for trading purposes, the park enterprise shall set up ledgers to truthfully record the quantities and amount for goods in and out. For any loss and/or damage of the recorded goods, the park enterprise may submit a report with justifiable reasons to the park administration or sub-administration so that after the park administration or sub-administration together with Customs or tax collection authorities jointly verify the report and exempt the goods from duties, the record of the goods will be allowed to be deleted from the ledgers.
The park administration or sub-administration in cooperation with Customs or tax collection authorities, may, if necessary, send their officers to examine of the ledgers and goods as prescribed in the preceding paragraph.
The NSC may request approvals from the Executive Yuan for appropriating an exclusive fund from the Science and Technology Development Fund or from other development funds for investment in qualified Science-based industries established in the park.
The proportion of such investment to the total fund shall be set forth by means of agreements between the NSC and the invested enterprises based on the categories of industry. The government investment shall not exceed forty-nine percent (49%) of the total amount of the capital invested on the science-based industries.
The park administration or its branches may select proper educational organizations or academic research institutes to help carry out projects of human resource education and training required by the park enterprises or projects of research and development for new technologies or interaction programs of technical professionals, instruments, and equipment on the basis of collaboration.
The NSC and the Ministry of Education shall consult other government agencies concerned to formulate plans and guidelines for the collaboration and interaction of technical professionals, instruments, and equipment referred to in the preceding paragraph.
The park administration or its branches may charge the park enterprises located within the park an administration fee for operating public facilities, maintaining public safety, and improving the quality of park environment. Besides, the park enterprises may be charged with procedural fees or service fees for performing the functional duties specified in Article 6 of this Act. These fees shall be paid up by all park enterprises concerned within a specified time limit decided by the park administration.
Regulations governing the categories and rates of the administrative fee, procedural fee, and service fee to be charged under the preceding Paragraph shall be developed and submitted by the park administration to the NSC for their approvals.
The park enterprises’ imported or exported goods which are involved in smuggling, duty evasion, or other violations of law, shall be dealt with in accordance with the provisions of Customs Preventive Law and other relevant laws.
In the case that a park enterprise transferred ownership or made a change in the use of the bonded goods that had been approved for exportation to a tax levying area, the park enterprise shall, within 30 days following the date of transfer ownership or making the change, make supplementary payment of import duties, commodity tax, and business tax in accordance with the original type of such bonded goods. In the case of failure to supplementarily pay such duties in accordance with the related provisions, the relevant provisions in Customs Law shall apply.
A park enterprise, which made an application for importing non-bonded goods under the name of bonded goods and then voluntarily applied for supplementary payment of duties and dues beyond the time limit as specified in the related provisions, shall, in addition to being liable to payment of such duties and dues, be subject to imposition of a delinquency surcharge in an amount to be calculated at the daily rate equal to 0.05% of the amount of the outstanding duties and dues for the period from the date following the day on which the imported raw materials are released by Customs to the date of full payment of the duties and dues. However, if the false importation is discovered by the Customs authority, the park enterprise shall, in addition to being liable to supplementary payment of the duties and dues and delinquency surcharge, be dealt with in accordance with the provisions of Customs Preventive Law.
In the case of a park enterprise that is in violation with the provisions of Paragraph 2, Article 19 in making supplementary payment of duties and dues for the processing, management, Customs clearance and domestic sale of bonded goods, or in conducting any other required matters, Customs may issue a warning and order the park enterprise to correct the breach in a prescribed period of time or impose a fine from NT$6,000 up to NT$30,000. Repeated fines may be imposed. If the breach is still not corrected after being punished three times, Customs may suspend whole or part of its bonded-goods operations for a period no more than six months.
In the case that any of the organizations and enterprises established in the park does not pay any administration fees within the time limit in accordance with the provisions of Paragraph 1, Article 27, it shall be imposed with a fine from NT$6,000 up to NT$30,000 and shall be demanded to pay the administration fees within a prescribed period of time. In the case of failure to pay the administration fees prior to expiry of the prescribed period, the park administration or sub-administration may transfer the case to a procedure of compulsory execution in accordance with the laws. The park administration or sub-administration may suspend exportation or importation of goods by the park enterprise for a period not less than one month and no more than one year.
The park administration or sub-administration and Customs may, from time to time, send its officers to make spot checks or recheck park enterprises’ self-inspection of inbound and outbound goods, or monthly declarations handled by bonded operation personnel of a park enterprise. In case it has been found that the personnel did not carry out the operation truthfully or within a prescribed time limit, Customs may issue a warning and request the park enterprise to rectify its operation within a prescribed time limit. If the breach is still not corrected after being consecutively warned three times, Customs may send a report to the park administration or sub-administration for approval to suspend the park enterprises’ privileges of self-inspection of inbound and outbound goods, and of monthly declaration for a period no more than one year. For a serious violation, Customs may send a report to the park administration or sub-administration for approval to revoke the park enterprise’ privileges of self-inspection of inbound and outbound goods, and of monthly declaration.
If any violation subject to fines according to the provisions of this Act involves criminal liabilities, such violation shall also be punished in accordance with relevant domestic laws, as the case may be.
In the case that a fine, imposed under this Act and required to be paid within a prescribed time, has not been paid on the expiry date, the case shall be transferred to a procedure of compulsory execution in accordance with the laws.
The enforcement rules of this Act shall be prescribed by the NSC.
This Act shall become effective as of the date of its promulgation.
Amendments to Articles 14 on the 28th day of December 2010 shall take effect on the 25th day of December, 2010.
(In case of disputes over the interpretation of this Act, the original Chinese text shall prevail.)