- In the case that investments held for less than 5 years from the first date of investment (counting from the first investment date to the anniversary date), conditions are breached. Investors are required to:
- Return the entire amount of the relevant tax exemptions to the Revenue Department
- If there are capital gains incurred from redemption, investors are required to:
- Pay withholding taxes according to the Revenue Code Section 50(2) calculated according to their tax rates
- Incorporate the capital gains incurred from redemption as a taxable income
For investments held for 5 or more years from the first date of investment (counting from the first investment date to the anniversary date) and with no grace period for more than one year regarding the minimum investment, redemption made before the age of 55 (does not apply to investments made before March 1, 2008). Investors are required to:
- Return the entire amount of the relevant tax exemption received for the past 5 calendar years to the Revenue Department (starting from the year prior to the one when conditions were breached)
- File a tax deduction repayment to the Revenue Department by the end of March, in the year following the breach of conditions. If there is a delay in repayment, investors will need to pay a surcharge at the monthly rate of 1.5% on the exempted tax amount.
Breaches of investment conditions 1 to 2 are not applicable in the event of death or disability of the investor, in accordance with the conditions of the Revenue Department.