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Title: Law for the Development of the Cultural and Creative Industries Ch
Date: 2010.02.03
Legislative: Date: 2010/2/3
Ref . No.: Hua-Zong-Yi -Yi -Zi 09900022451
Content:

Chapter  1  General Principle

Article 1  This  Act is enacted to foster the development of  Cultural  and Creative Industries, to

establish a social  environment with abundant culture and creativity , to utilize the

technology and create researches and developments, to strengthen talent cultivation

of  the Cultural  and Creative Industries, and to actively exploit the domestic and

overseas market.

The development of  Cultural  and Creative Industries shall  proceed pursuant to the

provisions in this  Act.    If  there exists more favorable provisions than the content of

this  Act, the said provisions shall  apply .

Article 2  To promote the Cultural  and Creative Industries, the Government shall  strengthen

artistic creation and cultural  preservation, reinforce the combination of  culture and

technology , emphasize on a balance development between cities, counties and

regions, value local  characteristics, elevate the citizens’  capacity for cultural

appreciation, and enhance the popularity of  cultural  art so to comply with the

international  trends.

Article 3  The “Cultural  and Creative Industries” referred to in this  Act means the following

industries that originate from creativity or accumulation of  culture which through the

formation and application of  intellectual  properties, possess potential  capacities to

create wealth and job opportunities, enhance the citizens’ capacity for arts, and

elevate the citizens’ living environment:

1.  Visual  art industry

2.  Music and performance art industry

3.  Cultural  assets application and exhibition and performance facility industry

4.  Handicrafts industry

5.  Film industry

6.  Radio and television broadcast industry

7.  Publication industry

8.  Advertisement industry

9.  Product design industry

10.  Visual  communication design industry

11.  Designer fashion industry

12.  Architecture design industry

13.  Digital  content industry

14.  Creativity living industry

15.  Popular music and cultural  content industry

16.  Other industries as designated by the central  Competent  Authority .

The content and scope of  the industries in the preceding paragraph are to be

stipulated by the central  Competent  Authority in consultation with the central

relevant competent authorities.  

Article 4  The “Cultural  and Creative Enterprise” referred to in this  Act means a legal entity ,

partnership, sole proprietorship or individual  engaging in Cultural  and Creative

Industries.

Article 5  The “Competent  Authority” referred to in this  Act refers to the Council  for Cultural

Affairs of  the Executive  Yuan in the central  government, the municipality

government in municipalities, and county government in counties.

Article 6  The central  Competent  Authority shall  formulate a development policy for Cultural

and Creative Industries and review and revise the policy every four years for the

Executive  Yuan’ approval  so as to be the policy basis to promote the development

of  Cultural  and Creative Industries.

The central  Competent  Authority shall , in conjunction with the central  authority in

charge of  the end enterprise concerned, establish a statistical  scheme on the Cultural

and Creative Industries and publish annual  report on Cultural  and Creative Industries

every year .

Article 7  To promote the development of  the cultural  and creative industry , the Government

shall  contribute to establish the Cultural  and Creative Industry Development and

Research Institute.    The establishment rule thereof  is to be stipulated otherwise.

Article 8  The Government shall  endeavor to develop Cultural  and Creative Industries, and

secure the relevant and necessary funds.

Article 9  Certain portion of  the National  Development Fund shall  be withdrawn to invest in

Cultural  and Creative Industries.

The regulations governing the review and approval  of  the investment in the

preceding paragraph, withdrawal  scheme, achievement index and the relevant

matters are to be stipulated by the central  Competent  Authority in conjunction with

the authority in charge of  the end enterprise concerned.

Article 10  The Government shall  promote the concept that cultural  creativity is valuable fully

exploit and utilize cultural  and creative assets, and further implement the related

policies.

When the economic utility of  the expenditures spent by the Government on tangible

or intangible cultural  and creative assets exceeds two years, the amount of  that

expenditure shall  be earmarked as an expense budget of  capital items.

Each central  authority in charge of  the end enterprise concerned shall  stipule ate

varieties of  incentive or measures of  assistance to support public and private

companies along with Cultural  and Creative Enterprises, and to convert creative

works and cultural  and creative assets to actual  production or application.

Article 11  To nurture cultural  and creative enterprise talents, the Government shall  fully exploit

and exercise the human resource of  cultural  creativities, integrate varieties of

teaching and research resource, and encourage Cultural  and Creative Industries to

proceed with cooperation on research and talent cultivation between industries,

government and academia.

The Government may assist local  governments, colleges and Cultural  and Creative

Enterprises to enrich cultural  and creative talents, encourage the establishment of

relevant developmental  facility in respect of  Cultural  and Creative Industries,

establish related courses, or proceed with creative experiments, creations,

exhibitions and performances.

Chapter  2  Assistance, Reward and Subsidy scheme

Article 12  The Competent  Authority and the central  authority in charge of  the end enterprise

concerned may provide Cultural  and Creative Enterprises with suitable assistances,

rewards or subsidies in respect of :

1.  Formation of  legal entity and relevant tax statement registration

2.  Creation or research and development of  products or services

3.  Entrepreneurship and incubation

4.  Improvements on agency system in the Cultural  and Creative Industry

5.  Circulation and application of  intangible assets

6.  Upgrade of  operation and management capacity

7.  Application of  information technology

8.  Cultivation of  professional  talents and recruitment of  international  talents

9.  Enhancement of  investment and commercial  participants

10.  Collaborative cooperation of  enterprises

11.  Expansion of  markets

12.  International  cooperation and communication

13.  Participation in domestic and overseas competition

14.  Industry cluster

15.  Utilization of  public real estates

16.  Collection of  industry and market information

17.  Promotion and dissemination of  fine cultural  and creative products or services

18.  Protection and application of  intellectual  property rights

19.  Assistance of  reviving cultural  and creative products and services

20.  Other promotional  matters on enhancing the development of  Cultural  and

Creative Industries.

The regulations regarding the subject, qualification, application scope, application

procedure, review standard, revocation, abolishment of  subsidy and other relevant

matters of  the assistances, rewards or subsidies indicated in the preceding paragraph

are to be stipulated by the central  authorities in charge of  end enterprises concerned.

Article 13  To elevate the citizens’ capacity for art and cultivate the popularities of  cultural  and

creative activities, the Government shall  provide schools which are below the senior

high school  level  with artistic and cultural  creativity appreciation courses and

arrange for relevant educational  activities.

Article 14  To promote the consumption habits relating to arts and invigorate the Cultural  and

Creative Industries, the central  Competent  Authority may earmark budgets to

subsidize students viewing and appreciation of  artistic and cultural  exhibition and

performance, and issue and distribute tickets to artistic and cultural  experience

events.

The target of  the aforementioned subsidy and ticket distribution and the

implementation regulations thereof  are to be stipulated by the central  Competent

Authority .

Article 15  The Government shall  encourage the Cultural  and Creative Enterprises to provide

original  products or services at favorable prices so to develop domestic Cultural  and

Creative Industries, and the price difference between the original  price and the

favored one are to be subsidized by the central  Competent  Authority .

The identification and subsidy regulations regarding the original  products or services

scope in the preceding paragraph are to be stipulated by the central  Competent

Authority .

Article 16  The central  authorities in charge of  the end enterprises concerned may reward or

subsidy the public to provide suitable space, set up each kind of  creation, incubation

and exhibition and performance facility for usage by the Cultural  and Creative

Enterprises.

The reward or subsidy regulations i n the preceding paragraph are to be stipulated by

the central  authorities in charge of  the end enterprises concerned.

Article 17  When the Government procures cultural  and creative products or services via the

method of  public selection, the creativity and arts of  the cultural  and creative

products or services may be included as part of  the evaluation factors.

Article 18  The competent authorities in charge of  the stations or the relevant facilities of  public

transportation systems shall  preserve certain percentage of  advertisement space at

the said stations or on the relevant facilities as priority space for cultural  and creative

products or services.    The advertisement space shall  be of fered at a favorabl eprice.

The percentage and usage fee thereof  are to be stipulated by the Competent

Authority .

Article 19  The central  Competent  Authority shall  coordinate with the related governmental

departments, financial  institutions, and credit guarantee institutions to establish an

investment, loan, and credit guarantee scheme for the Cultural  and Creative

Enterprises, and shall  provide favorable measures to induce the infusion of  private

funds to support those Cultural  and Creative Enterprises in various operational

stages to acquire their needed funds.

The Government shall  encourage business enterprises to invest in Cultural  and

Creative Industries so to facilitate the cross-field communication in the areas of

operation strategy and management experience.

Article 20  To encourage Cultural  and Creative Enterprises to establish their own brands and

actively cultivate the international  markets, the central relevant competent

authorities in charge of  end enterprises concerned may coordinate with each of  their

overseas of fires to assist the Cultural  and Creative Enterprises in establishing

international  brand image, attending reputable international  exhibitions and

performances, competitions, expositions, cultural  arts festivals, etc., expanding the

related international  markets, and promoting sales.

Article 21  To foster the development of  Cultural  and Creative Industries, the Government may

provide public cultural  and creative assets that are under the custody and

management of  the Government, and such assets may include books, historical

documentations, preserved cultural  and historical  relics or video and radio

information, by leasing, authorizing or through other measures so long as it does not

violate the relevant regulations on intellectual  property right.

The management authority that provides the public cultural  and creative assets in

accordance with the preceding paragraph shall  create an inventory list on assets that

are being provided to the public, and shall  publicize the said inventory information

in a suitable manner .

The management authority may preserve a portion of  the benefits gained through its

compliance with the first paragraph and spend it on management maintenance,

technology research and development, and talent cultivation.    Such expenditures

are exempted from the restriction set forth in  Article 7 of  National  Property  Act and

local  government regulations on public property management.

If  public cultural  and creative assets are utilized for non-prof it purpose, the

management authority may provide the user with favorable prices.

The regulations or municipal  rules regarding the lease, authorization, benefit

preservation and other relevant matters of  public cultural  and creative assets are to

be stipulated by the central  authorities in charge of  the end enterprises concerned,

municipality or county(city) competent authorities.

Article 22  To assist in securing locations for cultivating and supporting artistic creators and

their exhibition and performance, and when the required real estate is publicly

owned but not for public use, such real  estate may be directly leased by the

management authority in charge after the approval  of  the relevant competent

authorities in charge of  the end enterprises concerned.    Such lease is to be

exempted from the restriction stipulated in  Article 42 of  National  Property  Act and

local  government regulations on leasing methods of  public property management.

Article 23  For a pledge on copyright originated from the Cultural  and Creative Industries, the

establishment, transfer , alteration, extinguishment or disposition restriction on that

pledge may be registered with the copyright competent authority . If  the pledge is not

registered, such pledge will  not be a valid defense against any bonfires third party .

The foregoing provision will  not apply if  the pledge is extinguished by reason of  a

merger , or is extinguished by the extinguishment of  the copyright or the guaranteed

credit right.

Any person may apply to review the preceding content registered.

The registration regulation in the preceding first paragraph and the review regulation

in the preceding second paragraph are to be stipulated by the Competent  Authority

under the Copyright  Act.

The copyright competent authority may appoint private institutions or groups to deal

with the matters stipulated in the preceding first and second paragraphs.

Article 24  If  a copyright user uses its best effort but fails to obtain a valid authorization from

the copyright owner due to either the identity or the location of  the copyright owner

being unknown, the user shall  clarify the reason for its failure to obtain such valid

authorization to the copyright competent authority .    After the completion of  an

investigation conducted by the copyright competent authority and if  as a result of  the

investigation the user has obtained the permission and authorization from the

copyright competent authority , the user may utilize the work within the permitted

scope if  it has withdrawn the amount needed for usage remuneration.

The copyright competent authority shall  pronounce the authorization permission in

the preceding paragraph with suitable method and publish it on the government

report.

The usage remuneration amount in the first paragraph shall  be commensurate with

the freely negotiated amount of  reasonable and payable usage remuneration for a

general  work.

A replica of  cultural  and creative products which is made by obtaining the

authorization and permission in accordance with the first paragraph shall  indicate the

permission date, number and the qualification and scope of  the permissible usage

issued by the copyright competent authority .

The regulations regarding the application of  permission and calculation method of

usage remuneration in the first paragraph and other matters which shall  be complied

with are to be stipulated by the Competent  Authority under the Copyright  Act.

After obtaining the permitted authorization based on the first paragraph, if  any

inaccuracy on the application is found, the copyright competent authority shall

revoke the permission.

After obtaining the permitted authorization based on the first paragraph, if  the user

fails to utilize the work incompliance with the methods permitted by the copyright

competent authority , the copyright competent authority shall  rescind the permission.

Article 25  The Government shall  support in the establishment of  cultural  and creative villages,

and shall  as a priority assist core creative and independent workers to situate in the

said villages.    The Government shall , through the clustering effect by involving

different groups, further promote the development of  Cultural  and Creative

Enterprises.

Chapter  3    Tax Incentives

Article 26  If  a profit-seeking enterprise contributes and donates for the reasons stipulated in the

following and in an amount that is below NTD 10,000,000 or ten percent of  the

amount of  its income, such contribution and donation may be considered as

expenses or losses of  the year of  payment that are exempted from the restriction in

Sub-paragraph 2 of   Article 36 of  Income Tax  Act:

1.  Purchasing products or services originated by domestic Cultural  and Creative

Enterprises, and donating to the students or minority groups through schools,

departments or other groups.

2.  Cultural  and creative activities held in distant regions.

3.  Donating Cultural  and Creative Enterprises to establish an incubation center .

4.  Other matters identified by the central  Competent  Authority

The implementation regulations in the preceding paragraph will  be stipulated by the

central  Competent  Authority and the central  authorities in charge of  the end

enterprises concerned.

Article 27  To enhance the creativity of  Cultural  and Creative Industries, companies may deduct

or exempt f rom the payable tax by reason of  their investment expense in research

and development of  cultural  creativity and talent cultivation in accordance with

relevant tax acts or other regulations.

Article 28  If  the machinery and equipment imported f rom abroad by a cultural  and creative

enterprise for its own use are not currently manufactured by local  manufacturers as

specifically verified by the Ministry of  Economic  Affairs, they shall  be exempted

from import duties.

Chapter  4  Appended Provisions

Article 29  The enforcement rules of  this  Act are to be stipulated by the central  Competent

Authority .

Article 30  The effective date of  this  Act is to be stipulated by the Executive  Yuan otherwise.

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