Based on the recognition principles set forth in Article 8 of the Income Tax Act and the relevance of the services provided to the economy of our country, the income obtained by a foreign profit-seeking enterprise from sales of cross-border electronic services will be recognized as income from sources in the Republic of China in the following  circumstances:

1.If any products manufactured by a foreign profit-seeking enterprise outside our country are supplied to buyers inside our country via the Internet or in other electronic forms for transmission, downloading, and storage in a computer or mobile device, and the participation and assistance of an individual or profit-seeking enterprise inside our country is required to make such electronic services available, the consideration obtained from such services will be deemed as income from sources in the Republic of China.

2.If a foreign profit-seeking enterprise offers real-time, interactive, convenient, and continuous electronic services (such as online games, dramas, music, videos, and advertising) to buyers inside our country via the Internet or in other electronic forms, the consideration obtained from such services will be deemed as income from sources in the Republic of China.

3.If a foreign profit-seeking enterprise sells its services to service providers with a physical environment (such as lodging services and car rental services) via the Internet or in other electronic forms, and the services are provided inside our country or the service providers operate inside our country regardless of whether a foreign platform service is used, the consideration obtained from such services will be deemed as income from sources in the Republic of China.

4.If a foreign platform service provider builds an online transaction platform for sellers and buyers inside and outside our country to conduct transactions, and both or either of the parties to a transaction are individuals, profit-seeking enterprises, institutions, or organizations inside our country, the consideration obtained from both parties will be deemed as income from sources in the Republic of China.