Authorized Taiwan airlines operating direct cross-Strait flights would be exempt from tax on business and income generated from the Chinese mainland to promote direct flights between Taiwan and the mainland, the Ministry of Finance (MOF) has announced.

The exemption would be retroactive for air transport companies to June 25 of last year, according to a statement the MOF posted on its website on Tuesday. The statement, jointly issued with the State Administration of Taxation, was dated September 6.

Those authorized airlines in Taiwan that have paid business tax on cross-Strait direct flights from June 25, 2009 would receive a reduction in their total business revenue taxes.

Companies which have paid income tax since the exemption became effective would also receive a refund in 2010.