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Financial Administration

Kaohsiung City Enforcement Rules for Encouraging Private Investment

Prescribed on July 14, 2003 per memorandum no. Kao-shih-fu-cai-san-zih-di-0920037746
Amended on October 7, 2004 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0930050737
Amended on May 29, 2006 per memorandum no. Kao-shih-fu-cai-yi-zih-di-09590026880
Amended on July 27, 2006 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0950037346 
Amended on February 14, 2008 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0970006497
Amended on April 6, 2009 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0980019853
  • Article 1
    These regulations are prescribed in accordance with Article 7 of the “Kaohsiung City Self-Government Ordinances for Governing Receipts, Expenditures, Custody and Utilization of the Private Investment Encouragement Fund” (hereinafter referred to as “the Ordinance”).

  • Article 2
    The strategic industries approved by the City Government, as mentioned in Subparagraph 1 of Paragraph One of Article 5 in the Ordinance, include the following industries: 
    1. The leisure and tourism Industries
    2. The liner shipping, warehousing and storage, as well as logistics industries
    3. Industries related to digital content and audio-visual business
    4. The cultural communications, as well as film-making industries
    5. The cultural and creative industry 
    6. The biotechnology industry
    7. Any sectors participating and investing in the public construction of the City 
    8. Any sectors participating and investing in the city land development 
    9. Industries promoted and guided by the government
    10. Investment and development projects promoted and guided by the government 
    11. Any of the new important strategic industries mentioned in Article 8 of the Statute for Upgrading Industries

  • Article 3 
    The Kaohsiung City Review Committee for Encouragement of Private Investment (hereinafter referred to as “the Committee”) has been established to review the amount and term of the interest, rent, tax subsidy and as well as to review and validate the industry qualifications in accordance with the regulations. The Committee is composed of nine committee members, one of whom is the director of the Finance Bureau of Kaohsiung City Government, who also acts as both the ex-officio member and the convener. The other members are as follows:
    1. The director of Economic Development Bureau, Kaohsiung City Government
    2. The director of Urban Development Bureau, Kaohsiung City Government 
    3. The director of Labor Bureau, Kaohsiung City Government 
    4. Three scholars or experts, with at least one specializing in law
    5. Two representatives from the Bankers Association, ROC 
    The above members are hired/ assigned by the city mayor and shall serve a term of two years. When the post is vacant, a new member shall be hired/ assigned and s/he will complete the original term of service. 

  • Article 4 
    There is an Executive Secretary and two to five mission-oriented secretaries who are assigned by the competent authority, and these posts are occupied concurrently.

  • Article 5 
    For applications for the subsidy of financing interest according to Article 5 of the Ordinance, the annual subsidy is 1.5% of the financing value, after having passed the Committee’s review, during the subsidy term. When the actual financing rate is below 1.5%, the amount of the actual financing interest will be the subsidy.
    In respect of the subsidy of the property rent of the City, the subsidy will be 50% of the rent specified in the lease contract during the subsidy term.
    In both of the preceding paragraphs, the subsidy term for each applicant shall not be longer than five years. The annual subsidy amount shall not exceed NT$1.2 million of interest and NT$400 thousand of rent.

  • Article 6 
    For applications for the subsidy of financing interest according to Article 6 of the Ordinance, the annual subsidy is 2.5% of the financing value, after having passed the Committee review, during the subsidy term. When the actual financing rate is below 2.5%, the amount of the actual financing interest will be the subsidy. The subsidy term for each applicant shall not be longer than five years, and the annual subsidy amount shall not exceed NT$ 6 million.
    For the rent subsidy of land leasing in the Three Parks, 30% of the rent amount before the preferential rental rates apply are annually subsidized during the applicable period, for applicants eligible for the preferential rental rates by following the relevant development projects of government agencies, as approved by the Executive Yuan, upon the agreement of the cooperation of the land leasers within the Three Parks. When the actual rent payable is less than 30% of the rent amount before the preferential rental rates apply, the actual rent payable is fully subsidized. 
    Applicants who buy or build houses used directly for the purpose of investment within the Three Parks, can apply for the subsidy of annual house tax. The subsidy term is six years. Subsidize the total amount for the first two years, and 50% for the last four years. The total amount of cumulative subsidies per applicant shall not exceed NT$ 50 million.

  • Article 7 
    The committee shall invite relevant scholars and experts, industry representatives or Government staff to act as a nonvoting delegate when examining and verifying individual cases.


  • Article 8 
    The committee members shall avoid taking part in the meetings of the committee when conforming to Article 32 of the Administrative Procedure Act.
  • Article 9 
    The convener shall be the chairperson of the meeting held. Should the convener be unable to attend the meeting, he or she shall assign another member as a substitute.

  • Article 10 
    None of the members and assigned staff shall be remunerated. The scholars and experts, as well as industry representatives invited in accordance with Article 7, shall follow the preceding paragraph.

  • Article 11 
    The applicants are required to present the following documents to the competent authority:
    1. The approved Certificate of Profit-Seeking Enterprise or relevant documents
    2. Loan approval documents from a financial institution 
    3. Proof of lease. A notarized rental contract shall be submitted if the leased property is private, and relevant documents shall be submitted for proving the eligibility for the preferential rental rates by following the relevant development projects of government agencies, as approved by the Executive Yuan.
    4. Documents of the dutiable house tax amount 
    5. An Investment Plan
    6. An Operational Plan.
    7. A Financial Plan
    8. A Return on Investment
    In respect of any disagreement of the documents or any doubtful points of the submitted documents from the competent authority, the applicants shall be notified to complete the needed documents or account for the documents submitted, within fifteen days; if the applicants do not complete the necessary documents or account for the documents submitted, the application shall be rejected.


  • Article 12 
    Those who apply for the encouragement, and whose cases were reviewed by the Committee, and who were subsequently required to modify their documents or provide additional information, shall be notified by the competent authority of the items that shall be adjusted or provided within a limited time period. Those applicants who fail to adjust or provide the documents by the deadline shall be rejected.

  • Article 13 
    To apply for the annual subsidy from the competent authority, applicants shall prepare the following documents before November 30 every year. For applicants who do not have actual expenditures every month in a year, the subsidy amount will be calculated based on the number of months with actual expenditures, up to the month when the applications are submitted: 
    1. An application form for appropriations 
    2. Documents for the payment of the financing interest, rent, and house tax
    3. The income statement and the balance sheet of last year’s business income tax filing and declaration
    4. Receipts 
    In case that the application documents, as previously noted, fail to meet the required qualifications, the competent authority shall notify the applicants to provide additional documents or correct the documents submitted within a limited time period. Those who fail to complete all the documents shall lose their right to the subsidy application of the year.
  • Article 14 
    The application in the preceding article shall be examined and verified within 20 days. The appropriation shall be made and the application cancelled after verification in accordance with the procedures heretofore defined.
  • Article 15 
    After the subsidy is approved, the competent authority shall conduct inspections at irregular intervals. If any inaccuracies are found, or if an applicant refuses inspection or violates regulations, the subsidy shall be cancelled or abolished. If the subsidy is cancelled, the applicants are required to reimburse the subsidy along with the interest that will have accrued daily, based on the fixed annual interest rate for a one-year time deposit with the Postal Remittances and Savings Bank of the year. Those that have been notified to make payments within a limited time period and fail to do so by the set deadline shall be referred to the executive enforcement authority.
  • Article 16 
    These regulations shall come into force on the date of promulgation.
    In case of discrepancies between the Chinese version and the English version, the Chinese version shall prevail.