Department of FinanceFAQ

What are the models for the private sector to participate in public infrastructure?

Wed, 19 Jun 2013 16:00:00 GMT

According to Article 8 of〝Act for Promotion of Private Participation in Infrastructure Projects〞, the private sector may participate in an infrastructure project by any of the following models:
1. The private sector invests in the building and operation of the project, and upon expiration of the operation period, transfers the ownership to the public sector (BOT).
2. The private sector invests in the building of the project and upon completion of the building, relinquishes the ownership to the public sector without compensation. The public sector then commissions the operation of the project to the same private sector. Upon expiration of the operation period, the right of operation reverts back to the public sector (BTO without compensation).
3. The private sector invests in the building of the project and upon completion of the building, the public sector acquires ownership through payment of the construction expenses. The public sector then commissions the operation of the project to the same private company. Upon expiration of the operation period, the right of operation reverts back to the public sector (BTO with compensation).
4. The public sector commissions the private sector, or the private sector leases from the public sector, existing facilities for operation after renovation or expansion. Upon expiration of the operation period, the right of operation reverts back to the public sector (ROT).
5. The public sector invests in the building of the project and then commissions the operation to the private sector. Upon expiration of the operation period, the right of operation reverts back to the public sector (OT).
6. To support the national policy, the private sector invests in the building of the project and has ownership of the building, and then either operates the facility by itself or commissions a third party for operation (BOO).
7. Any other model as may be approved by the competent authority.

What is land development management plan in Taipei City?

Wed, 19 Jun 2013 16:00:00 GMT

In order to consolidate city asset administration, strengthen short term usage and interest increment and long term development so as to sustain city assets, the Taipei City land development management plan is as follows:
A. Management Principle
1. Depletion of existing illegal possessions, prevention of new illegal possessions
2. Before development of a land, short term usage administration or preliminary greening must be made
B. Development Principle
1. In cooperation with land purpose decided by urban plan, and preference for public facility
2. For public construction that can be done with own funding: for those that are not built yet, BOT manner can be adopted that civilians can invest and develop. As for those that have already been built, civilian organizations can be authorized to operate according to the business.
3. For those that lack funding by themselves, their supervising institutes can apply for budget to build themselves in compliance with urban planning
4. According to the size of the land area, location and development value, following manners can be taken to develop and use: open bidding for setting up land usage right, joint development, participation of urban redevelopment, and to co-build or entrust to build with adjacent land for common development or with fragmentary land for sale.

How can civilian organizations join in public construction?

Wed, 19 Jun 2013 16:00:00 GMT

As per Article 8 of “Enhancement Act for Civilians to Attend Public Construction”, the methods to join public construction are as follows:
A. These constructions are built and operated by civilians; after the operating periods expire, they will be transferred back to government (short named as BOT).
B. Government will obtain ownership of the constructions without funding that are invested and newly completed by the civilians and entrust civilian organizations to operate them. After the operating period expires, the operating right of construction will be transferred back to government (short named as BTO without Funding).
C. Government will pay the full amount or at several milestones of the construction to obtain the ownership after the construction is invested and newly completed by the civilian and entrust a civilian organization to operate it. After the operating period expires, the operating right of construction will be transferred back to government (short named as BTO with Funding).
D. Existing facilities that are entrusted by government to the civilian to rent or are rented by the civilian will be expanded, remodeled and operated. After the operating period expires, the operating right of the facility will be transferred back to government (short named as ROT).
E. Facilities that are invested and newly built by government can be entrusted to be operated by a civilian. After the operating period expires, the operating right of the facility will be transferred back to the government (short named as OT).
F. In order to cooperate with national policy, civilian organizations will invest to build a new facility, possess the ownership and operate it themselves or entrust a third person to operate it (short named as BOO).
G. Other methods authorized by supervising institutes

How many underground pedestrian multifunctional plazas (metro mall) are there that are administered by Department of Finance?

Wed, 19 Jun 2013 16:00:00 GMT

There are three underground pedestrian multifunctional plazas (metro mall) administered by Department of Finance: Zhongshan Metro Mall (between Taipei Main Station and Shuanglian Station), East Metro Mall (between Zhongxiao Fuxing Station and Zhongxiao Dunhua Station), and Ximen Metro Mall (located at Ximen Station).

Is there tax reduction or exemption for citizens who participate in major public constructions sponsored by Taipei City Government?

Wed, 19 Jun 2013 16:00:00 GMT

Whereas the civilian participate in major public constructions sponsored by Taipei City Government, they can reduce land value tax for 5 years, 50% of house tax and 30% of deed tax according to "Self-governing Institute for Reducing or Exempting Land Value Tax, House Tax and Deed Tax by Enhancing the Civilian Organizations to Participate in Major Public Constructions in Taipei City".

How many local taxes are collected by Taipei City Government?

Wed, 19 Jun 2013 16:00:00 GMT

There are 7 local taxes are collected by Taipei City Government: "Stamp Tax", "Vehicle License Tax", "Land Value Tax", "Land Value Increment Tax", "House Tax", "Amusement Tax", and "Deed Tax".

What are the supervising agencies in central government and local government respectively?

Wed, 19 Jun 2013 16:00:00 GMT

In central government, it is National Treasury Agency, Ministry of Finance; in municipal governments, it is municipality government, which is directly under the jurisdiction of the Central Government; and in county or city government, it is county/city government.

What is the levying institute for tobacco and alcohol tax?

Wed, 19 Jun 2013 16:00:00 GMT

Tobacco and alcohol tax is responsibly levied by five national tax administrations fo Ministry of Finance. In municipality, there are Taipei and Kaohsiung National Tax Administrations. In Taiwan Province there are North, Central and South National Tax Administrations .

What are those financial institutes that are under Department of Finance's supervision?

Wed, 19 Jun 2013 16:00:00 GMT

Those financial institutes under Department of Finance's supervision are two Credit Cooperatives of Taipei City, the Fifth and Ninth. In compliance with “Credit Cooperative Law”, “Banking Law” and “Cooperation Law”, Department of Finance executes administration management for these Credit Cooperatives regarding the general affairs, businesses and financial affairs.

Is there any incentive provided by Taipei City Government for the private sector to participate in public project?

Mon, 30 Aug 2010 16:00:00 GMT

According to "TCG Municipal Guideline for Encouraging Civil Participation in Public Infrastructure Projects through Land Value Tax, Building Tax and Deed Tax Abatement", the private sector can enjoy local tax incentives, such as exemption of land value tax for 5years, reduction 50% of building tax, and 30% of deed tax.

Is there any plan made by Taipei City Government to encourage civilian investment?

Sat, 11 Jul 2009 16:00:00 GMT

According to the regulation of "Self-governing Institute for Taipei City to Encourage the Civilian to Invest" the incentives provided by Taipei City are "Financing Interest Subsidy", "Lease and Tax Subsidy", "Labor Training subsidy" etc.