A Study of Non-land Local Tax Incentives for Not-for-profit Organizations

• Main Authors: Yu Shu-Yu, 余淑瑜
• Other Authors: Chiang-Liang Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/92707363321478732207

碩士 === 中原大學 === 會計研究所 === 101 === NPOs discussed by the study include not-for-profit juridical associations , foundations and registered non-juristic person organizations. While non-land tax of local tax covers exemption of house tax, deed tax, stamp tax, vehicle license tax, amusement tax, in which general rules of various taxes are described and tax preferences are stated as per private schools, religious organizations, private hospitals, culture & art, public welfare associations, charity & relief business, farmer’s organizations, people’s organizations and labor union, respectively. The house tax preference for public house users will be applied to school buildings, hospital buildings and office buildings of a public school, hospital, social, educational or academic research institute or relief organization as well as dormitories provided to their employees, public houses provided for buildings at places preserved as scenic spots as well as for housing of ancient relics and shrines dedicated to sages and martyrs, are also exempt from house tax. House tax is exempted for private houses in school buildings and office buildings owned by a private school, houses owned and directly used for its activities by a private charitable institution, shrines owned by clansmen organization and used exclusively for ancestral worship, churches and temples owned and used by religious groups for religious service, offices owned and directly used by a not-for-profit organization whose establishment has been duly approved by the government or an academic research institute on record with the competent authority and duly registered as a not-for-profit organization as common requirements for tax exemption. Deed tax preference regulations are explained by letter issued by Ministry of Finance as per various category, foundations established upon rules by Employees' Welfare Committee of religious organizations, hospitals and non-juristic person organizations, as well as organizational change in private schools, farmer’s associations, fisherman’s association or national agricultural bank, engineers association and architects association caused by merger, will be exempt from deed tax. According to article 6 of stamp tax preference regulations that NPOs apply to, monetary receipts executed by public or private schools, receipts identifying payment of social benefits, payments to the family of a deceased person or pensions and receipts for donations issued by corporate entities organized for public/social welfare, or charitable purposes, receipts for the sale of self-grown agricultural products issued by farmer's associations or wholesalers at the first wholesale level on behalf of farmers, as well as account book and receipt for conducting affairs with regard to government and insurance as per rules, are exempted from the levy of stamp tax Objects that benefit from exemption of vehicle license tax preference primarily include advocacy for education and culture of culture & arts business, public welfare associations and charity relief business, ambulance cars and specific vehicles owned by social welfare organizations. According to rules for amusement tax exemption, amusement activities sponsored by educational, cultural, public interest, charity institutions, or organizations deemed a public interest social organization or foundation under the General Provisions of the Civil Code or duly registered with the competent authorities pursuant to other related laws or regulations where the total proceeds are used exclusively by said institution or organization, are exempt from amusement tax. Amusement activities where the total proceeds after deducting necessary expenses are used for disaster relief or military morale purposes. Those enterprises engaged in the display, performance, projection or broadcast, auction, or other cultural and artistic activities relating to Culture and Arts Reward Act may apply to the Executive Yuan Council for Cultural Affairs ("CCA") to receive approval for a business tax exemption or reduction of entertainment tax on the income generated from cultural services or sales Given the fact that local studies reported less consolidation and discussion on tax preference for land tax by various types of NPOs, the study has consolidated related tax preference regulations, official letter and example sentence and tried to explore unreasonable phenomenon, to expect to be regarded as a reference for related studies.