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2.2. Tax Consequence of Contributions

Taiwan imposes capital duty/taxes depending on the total amount of capital stipulated in the Articles of Incorporation and its makeup.

For cash contributions, Taiwan imposes a capital duty of 0.025%, with a minimum of TWD 1,000.

For capital contributions in kind, any capital gain of the difference between the share value less the cost of the asset is subject to income tax. If the cost of the asset cannot be ascertained, the tax authorities may deem 30% of the share value as the cost.