Laws for cash prizes?

Similar Question (to Non-Taiwanese resident charged extra 20% tax when receiving prizes? - #11 )

I am organizing a MMA type contest. I will be charging a fee for entry. But I want to distribute all profits in the form of cash prizes.

My question: Are there any applicable laws for cash prizes? I know many places in Taiwan offer cash prizes, but I want everything above board.

Do you want to tax deduct it for your business? Or are you okay with just gifting it for free, with no deduction claimed?

Gifting for free.

No tax write off needed.

Free

Article 88 of Income Tax Act

For a taxpayer having any income of the following categories, the tax withholder involved shall withhold tax payable at the time of payment as per the prescribed tax rates and withholding procedures, and pay the tax withheld in accordance with the provisions of Article 92 of this Act:

2. Salary, interest, rental, commission, royalty, cash award or prize given in a contest or game competition, prizes of a chance winning, retirement pay, severance pay, separation pay, resignation pay, life-time pension, old-age pension not covered by insurance benefits, reward for information or accusation, income from transactions in structured products, and fees for professional practices paid by any organization, institution, school, enterprise, bankruptcy estate, or practitioner of profession, and the income paid to a foreign profit-seeking enterprise having no fixed place of business or business agent within the territory of the Republic of China;

where and when? I would like to watch

Probably around September/October. I am still scouting a location. I’ll definitely post on Forumosa when finalized.

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Thanks Tando.