Issuance of Explanatory Decree No. 09704555660 by the MOF

1. From Jan. 1, 2009, the individual shall be required to apply for business registration and file VAT return in case he/she leases self-owned buildings or sublease rented buildings to third party, which conforming to any of following conditions:

a. Equipped with fixed operating premises (including tangible operating space or website);

b. Equipped with business signboard (whether or not business registration has been applied for);

c. With employee responsible for lease.

2. For lease not conforming to conditions above, the individual must file individual income tax return for income from lease according to Article 14 of Income Tax Act.

3. Taxable condition for Lease of self-owned building registered before issuance of this explanatory decree shall not be changed.