Q1. How should I pay business tax on technology transfer from an academic research organization to a spin-off company?

A: (I) Business tax provisions: According to the Order of the Ministry of Finance No. 10804666690 dated February 26, 2020, from July 1, 2020, business tax will be levied on the revenues from licensing and transfer of technology obtained by the university through industry-academia cooperation or the implementation of scientific and technological research and development projects. According to the Value-added and Non-value-added Business Tax Act, the prices of taxable goods and services should include business tax, which should be paid to the government when filing business tax returns.

(II) Payment of sales tax: When an academic research institution transfers technology to a spin-off company, the price of the technology stock is the pre-tax price, and the sales tax is 5 percent of the price, the sum of which is the set price, and the sales tax should be paid by the taxpayer (the academic research institution).

Q2: In the process of technology transfer and licensing from an academic research institution to a spin-off company, how does the creator pay the second-generation NHI premiums generated by the technology stocks or the capital received from the academic research institution as the creator's salary? 

A: (I) Provisions of the Second Generation NHI Supplementary Premium: According to the National Health Insurance Administration of the Ministry of Health and Welfare, in addition to the existing insurance premiums, the insured and the insured unit should pay the second-generation NHI supplemental premiums for any additional salary income.

(II) Payment of Second Generation NHI Supplemental Premiums: In this case, the insured unit is the academic research institution, and the creator receives the technical stock or capital allocated by the academic research institution, which is recognized as the creator's salary income. The academic research institution should deduct the supplemental premiums from the creator according to the supplemental premium rate (paid by the insured), and then remit them to the National Health Insurance Administration, together with the academic research institution's own contribution (paid by the insured unit).

(III) Supplemental Note: The amount payable for the second-generation NHI supplemental premiums does not vary based on when the academic research organization allocates the technology stock to the creator.