1. The Accumulated Retained Earnings can be used to offset the losses of the next fiscal year to save the additional tax burden of the surcharge tax. 
(Please note the Surcharge Tax Return of Accumulated Retained Earnings has to be certified and duly filed by CPA and the financial statements of the next fiscal year has to be audited by CPA.)
 
Example:
When declaring Accumulated Retained Earnings for the fiscal year 2020, if the Accumulated Retained Earnings for 2020 are positive and there is a loss in the financial statements for the year 2021, the 2021 losses can be deducted from the Accumulated Retained Earnings for 2020. Thereby reducing the 5% surcharge tax payable of 2020 Accumulated Retained Earnings to a maximum of 0 NTD.
 
2. After investigation of Tax Authorities, the amount of tax evaded under NTD 20,000 is exempted from the penalty.