Amendments raising tax deductions for sports sponsorships passed

Taipei, July 8 (CNA) Taiwan's Legislative Yuan passed amendments Tuesday that give businesses a bigger tax break for donations to sports events or amateur sports.

Under the amended Sports Industry Development Act, which was approved by the Executive Yuan in May, companies will be able to claim up to 175 percent of donations to the professional or amateur sports sectors or "major sports competitions" as a deduction on taxable income.

Under existing law, the maximum deduction was 150 percent of donations made.

Also, tax deductions for donations to amateur sports and major sports competitions will be applicable for 10 years, extended from the previous five years.

The Ministry of Education, which oversees sports in Taiwan, defines major sports competitions as international events, whether multisport events such as the Asian Games or single-sport events that are Olympic sports or events specifically designated by the ministry.

The amendments also include the category of "general sports events" as eligible sponsorship recipients, including sports competitions held by clubs, government agencies, businesses or communities, in order to promote exercise in society.

Another new provision passed Tuesday stipulates that the National Development Fund designate a fixed portion of its funds to invest in sports-related events to demonstrate the nation's determination to support the sports sector.

Meanwhile, sponsors that employ various digital or information technology to enhance the service quality or improve the competitiveness of the sports sector will also be eligible to receive relevant incentives from the competent authority.