In compliance with relevant news interpreted and announced by the Ministry of Finance on February 26th, 2020:

1. Loyalties and grants acquired by universities due to technology transfer and utilization of intellectual property rights (IPR) are regarded as income generated from re-utilization of research result output, and therefore, taxes shall be imposed.

2. The "Sunrise Clause" is enacted for academic and research institutions to have buffering time to respond to the termination of tax exemption that is put into effective on July 1st, 2020 (including). Until now to the end of June, contracted cases are exempted from business tax.

3. Although business tax imposed on income generated from technology transfer and utilization of IPR increases acquisition costs of businesses, yet the adoption of "Deduction of Input Tax" of business tax allows businesses to deduct relevant input tax when declaring purchase items that include tax. No burden of businesses will be increased.

Since 2020/7/1, contracts of technology transfer, licensing, and assigning should pay 5% business tax. Projects during negotiation shall inform the Center to assist with timely contract signing!

Please refer to: Industrial-Academic Services/R&D Result Licensing Procedure for relevant information and services of contract signing.

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