amendment of the Act for Development of Small and Medium Enterprises

According to the amendment of the Act for Development of Small and Medium Enterprises in February 2015, the salary expense from additional staff employed by small and medium enterprises can be used to calculate an additional 30% of amount deductible. If a small and medium enterprise hires an additional employee who is under 24 years of age, or gives a raise to an entry-level employee, an additional 50% and 30% of amounts deductible can be included. In addition, under the Act for Industrial Innovation, the deductibles for the Intellectual Property income related to R&D expenses shall also be included in 2016 in accordance with the related regulation effective dates. The above-mentioned additional employee salary expense deductions shall be included in the basic income amount when businesses file profit-seeking enterprises income tax return this year.