Act for the Development of Biotech and New Pharmaceuticals Industry Extends for Another 10 years: Reduction in Corporate Income Tax Payable for up to 35%

2020-07-08 10:14:39

The Act for the Development of Biotech and New Pharmaceuticals Industry which is set to expire on December 31, 2021 is scheduled to be extended for another ten years by the government. The scope of application of the Act originally included New Drugs, High-risk Medical Devices, and Emerging Biotech and Pharmaceutical Products used by human beings, animals and plants. The new amendment plans of the Act will also cover eHealth and National Strategic Development of Biotech Products. Tax Benefits: Article 5 A Biotech and New Pharmaceuticals Company may, for a period of five years from the time it is subject to corporate income tax, enjoy a reduction in its corporate income tax payable for up to 35% of the total funds invested in R&D and personnel training each year. Article 6 A profit-seeking enterprise that subscribes for the stock issued by a Biotech and New Pharmaceuticals Company and has been a registered shareholder for a period of three years or more, may, for a period of five years from the time it is subject to corporate income tax, enjoy a reduction in its corporate income tax payable for up to 20% of the total amount of price paid for the subscription of shares in such Biotech and New Pharmaceuticals Company.

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