According to Article 144 of the "Special Taxation Law," when a sole proprietor with non-deductible tax amounts transitions to a corporation and does not qualify for the corporate conversion under Article 32, Paragraph 1 of the same law, the newly formed corporation cannot inherit and deduct the non-deductible tax amounts from the previous sole proprietor.

However, when a resident transitions their business to a corporation and the newly established domestic corporation increases employment during the taxable year that includes the corporate conversion date, the calculation of the tax deduction amount for such enterprises is based on the number of regular employees in the previous taxable year of the business before the corporate conversion.