[Finance] Companies Using Calendar Year Will Benefit from Tax Rate Fall First

Promoting in Industry Upgrade Act will be abolished by the end of this year and corporate tax rate will fall to 20%. Companies using calendar year (CY) can benefit from new tax rate from beginning of January in 2010. While the companies using fiscal year (FY) start to adopt new tax rate at the beginning of FY2010. FY of most US companies in Taiwan begins on first day of July. Income in FY2010 refers to those occurred during the period from July 1, 2010 to June 30, 2011. Such companies cannot adopt a lower rate of 20% for corporate tax until July 1, 2010. Income occurred before June 30, 2010 shall be recognized as revenue in FY2009 and must be levied corporate tax at the rate of 25%.