Intellectual Property Office Considered that Taxation of Technical Shares is Disadvantageous to the Development of Intangible Assets Trading Market.

Ministry of Finance stipulated that income tax will be levied on property trading income gained from becoming shareholders through the intangible assets, such as techniques, since January 1, 2004. Such stipulation will cause significant influence on high-tech industry and the government and relevant industries’ deep concern as well.

 

Vice Chairperson of Intellectual Property Office (IPO), Lu Wun-Siang (盧文祥), indicated that since technical trading in the local market is about to develop, and there are still difficulties in the calculation of patents research and development cost, this sudden taxation of technical shares will produce adverse influence on the industry construction of local market. Lu expressed that the environment of technical trading in the USA is directed by market mechanism, while technical trading in Korea, by the government, including the banks’ obtainment of 100% of guarantee finance granted by the government, etc.. The technical trading in China was centered on non-governmental forces. Taiwan Technology Marketplace (TWTM) is still in its initial stage, and there should an appropriate inducement to stimulate the development of the whole industry.

 

Lu considered that “since techniques are saleable and purchasable, they are supposed to be the targets of taxation, while the time and method of taxation deserve careful consideration.” In addition to license and transference of ordinary patent that has purchase and sale certificate as taxation basis, there are many difficulties in the determination of time, manpower, resource equipment invested on other self-developed intangible assets. In this regard, detailed and careful research on costs should be conducted to reach fair taxation. (2004.03)

CYJ/CCS