The Company Act of Taiwan was amended on July 1, 2015 to add a special section on close companies, allowing a close company to contribute equity capital by service or goodwill within certain percentage.

Close companies although breaking the equity capital contribution model of cash or assets in the past, so that entrepreneurs can contribute equity capital to set up companies by service or goodwill to reduce financial pressure in the initial phase of starting a company, to obtain a stock by service or goodwill, special attention should be paid to avoid being heavily taxed.

Although contribution of capital by service or goodwill enjoys convenience, the stock obtained is included in the individual income tax.