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Financial Administration

Kaohsiung City Self-Government Ordinances for Governing Receipts, Expenditures, Custody and Utilization of the Private Investment Encouragement Fund

Prescribed on July 14, 2003 per memorandum no. Kao-shih-fu-cai-san-zih-di-0920037747
Amended on July 15, 2004 per memorandum no. Kao-shih-fu-cai-san-zih-di-0930036995
Amended on June 23, 2005 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0940029580
Amended on July 6, 2006 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0950034148
Amended on July 23, 2007 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0960036286
Amended on February 14, 2008 per memorandum no. Kao-shih-fu-cai-yi-zih-di-0970006499
  • Article 1
    These Self-Government Ordinances are prescribed in order to establish the Private Investment Encouragement Fund (hereinafter referred to as “the Fund”) for assisting industrial transformation, promoting local investment, and encouraging private investment in major public constructions.

  • Article 2
    Receipts, expenditures, custody and utilization of the Fund shall comply with the Self-Government Ordinances, unless otherwise stipulated by other memoranda.

  • Article 3 
    The Fund is a special fund, which prepares the budgets of its subsidiary units, with the Finance Bureau of Kaohsiung City Government (hereinafter referred to as “the Government”) as its competent authority.

  • Article 4 
    The sources of the Fund are as follows: 
    1. Appropriations in compliance with budget procedures of the Government. 
    2. The interest income of the Fund.
    3. Other incomes.

  • Article 5 
    Those who meet one of the following conditions and had new investment amount of more than NT$30 million or increased job opportunities for 30 or more domestic laborers within the past one year, are entitled to applying for the Encouragements of the Self-Government Ordinances: 1. Strategic industries approved by the Government. 2. Those investing in the public construction of the City pursuant to the Law for Promotion of Private Participation in Infrastructure Projects. 3. Urban renewal businesses that implement reconstruction, renovation and maintenance within the renewal areas of the City pursuant to the Urban Renewal Act. 4. Other upgraded industries. The enterprises, approved by the Ministry of Economic Affairs and having established the R&D center or global operation headquarters in the City, shall not be subject to the limitations in the preceding paragraph. The encouragements provided in the preceding two paragraphs are the subsidies of financing interest and rent of property in the City.

  • Article 6 
    ndustries that invest, develop, or enter and function in the Multi-functional Commerce & Trade Park, the Air Cargo Park, or the Biotech Park (hereinafter referred to as “the Three Parks”) and that apply for the Encouragements of the Self-Government Ordinances shall not be subject to Paragraph 1 of the preceding Article.
    The applicants stated in the preceding paragraph are restricted to those approved by the Kaohsiung City Review Committee for Encouragement of Private Investment (hereinafter referred to as “the Committee”) as the industries listed in Article 6-1 and those eligible for preferential rental rates by following the relevant development projects of government agencies, as approved by the Executive Yuan, upon the accordance of the land leasers within the Three Parks. 
    The Encouragement item of Paragraph 1 is the subsidy of financing interest, rent of property in the Three Parks and house tax of the buildings built or bought by the applicants in the Three Parks.

  • Article 6-1 
    The subsidized industries as the previous Article noted are: 
    1) Multi-functional Commerce and Trade Park:
    1. Logistics industry 
    2. Digital content industry 
    3. Sports and recreational services industry
    4. Tourism and medical service industry 
    5. Research and development services industry
    6. Enterprises’ operation headquarters, R&D centers, and design centers
    7. Information software industry 
    8. Electronic telecommunications research and development industry 
    9. Leisure boat industry
    10. Green energy industry
    11. MICE industry
    2) Air Cargo Park: air cargo industry
    3) Biotech Park: biotechnology industry. 
    Each industry, as previously noted, should not interfere with the zoning restrictions of the urban planning. The classification of the industries in the first paragraph will be announced separately by the authority.

  • Article 7 
    The applicants stated in the preceding two articles who have already applied for relevant subsidies from the Government in accordance with other laws shall not apply for the Encouragements of the Self-Government Ordinances. A committee shall be established to review the amount and term of the interest, rent, and tax subsidy, and to review and validate the industry qualifications. The competent authority shall separately determine its organization and the enforcement regulations of deliberation.

  • Article 8 
    The Fund may be used for the following purposes:
    1. The encouragement facts in Article 5 and Article 6. 
    2. The expenses needed for managing the Fund. 
    3. Other relevant expenses.

  • Article 9 
    The Fund shall be subsumed under the Municipal Treasury of the City Government and centrally disbursed. A specific account shall be established and the Fund shall be used rotationally.

  • Article 10 
    Preparation, execution and final financial statements of the annual budget and accounting handling shall be conducted in compliance with the relevant directives and regulations.

  • Article 11 
    Surplus in the annual final accounts of the Fund, if any, shall be kept in the Fund.

  • Article 12 
    The Fund shall be settled when its operation ends; any balances and interest shall be transferred to the Municipal Treasury of the Government.

  • Article 13 
    The Self-Government Ordinances shall come into force on the date of promulgation.

    The content of industrial classification in accordance with Article 6-1 of the Kaohsiung City Self-Government Ordinances for Governing Receipts, Expenditures, Custody and Utilization of the Private Investment Encouragement Fund:


    The Name of Industry

    Detail Explanations and Definitions for Classification


    Logistics industry

    The transportation and warehousing industry other than passenger transportation (the logistics and business process of delivering and transferring goods and services from the point of origin to final users. Activities that are related to the flow of information and financial processing are classified as circulation-related industry)


    Digital Content Industry

    Digital content products and services: digital games (game development, domestically developed gaming service platforms), digital animation (animation creation and design, animation production), e-Learning (content production, e-Learning service platforms), mobile content (mobile content development, mobile service platforms), network content and applications (software applications services, applied system integration services, customized services), digital multimedia content and applications (digital multimedia content development, digital multimedia service platforms), e-Publishing collections (content development and applications, network service platforms), and content software (software products, system integration, embedded software)


    Sports and Recreational Services Industry

    Athletics and recreation facilities, golf course facilities, sports media broadcasting and others


    Tourism and Medical Service Industry

    Tourist hotel industry, amusement park industry and medical service industry

    According to the Tourism Development Act, tourist hotel industry refers to international tourist hotels or general tourist hotels which provide accommodation and related services for tourists, run by profit-seeking enterprises.

    Tourist amusement park industry refers to the tourist amusement parks that are approved by the competent authorities and run by profit-seeking enterprises


    Research and Development Services Industry

    Refers to the research and development services or the research and development technology services of the strategic industry that is approved by the Government


    Information Software Industry

    1) The planning, design, development, research, analysis, construction, assembly, testing and maintenance of information software

    2) Information service industries such as: e-Enterprise, computer supported cooperation work, e-commerce and other areas


    Electronic Telecommunications Research and Development Industry

    The research and development units of automation planning and design companies, IC design companies and manufacturers of computers, electronics, information and telecommunications


    Leisure Boat Industry

    The industry that is engaged in leisure boat research and development, design or operation services and others. Leisure boat operation services: companies that make profit by using leisure boats to run leisure activities according to the Leisure Boat Operation regulations.


    Green Energy Industry

    The feasibility study, planning and design of new clean energy and power-saving equipment (solar power) and related technology industries


    MICE Industry

    1) The international symposium, international industrial conference or international annual convention that is hosted by a government certified college, university, academic organization, domestic private organization, company or group

    2) Meeting and exhibition services industry refers to the industry that is in charge of organizing, advertising and managing meetings and exhibitions


    Air Cargo Industry

    1) Air Freight Forwarder means, with the exception of forwarding or the delivery of mail, a business authorized to forward, through a civil air transport enterprise, air cargo and international trade and commercial documents for others for compensation or hire according to the regulations of the Civil Aviation Act

    2) Air Cargo Entrepot means a business for importing, exporting, transferring, collecting and distributing air cargo; of handling in-and-out airport control areas for customs formalities, warehousing arrangement, facilities and services, and which provides compensatory hiring according to the regulations of the Civil Aviation Act


    Biotechnology Industry

    Refers to the industry that researches, develops, transfers biotechnology and consults in the biotechnology field