Page 18 - GenerationCar

Item Incentives

Investment in smart ● Smart machinery: Automatically scheduled, flexible, or
machinery / 5G mixed-model production lines that utilize big data, AI, and
IoT.
● 5G: Related investment projects include 5G communication
systems, and new hardware, software, technology, or
technical services.
● For investments of no less than NT$1 million and no more
than NT$1 billion, either "5% of investment spending
deducted from profit-seeking enterprise income tax (current
FY)" or "3% of investment spending deducted from profit-
seeking enterprise income tax, if total spending spread
over three years" may be selected, but the total amount
deducted may not exceed 30% of corporate income tax that
year.
● The applicable periods are January 1, 2019 through
December 31, 2021 (smart machinery) and January 1,
2019 through December 31, 2022 (5G).

Technology ● The worth of shares acquired through technology
investment / Stock- investment/stock-based employee compensation can be
excluded from the taxable income for that year (up to NT$5
based employee million). In addition, those that meet related criteria are
compensation eligible for reduced taxes based on "acquisition price" or
"transfer price," whichever is lower.

Foreign Special ● Foreign special professionals who meet criteria are eligible
Professionals for a 50% deduction of total income tax for amounts
exceeding NT$3 million.
Setting up ● Companies that set up operations in export processing
operations in zones, science industrial parks, or free trade ports are
industry parks eligible for exemptions on import duties, commodity tax, and
business tax for the import of machinery and equipment,
ingredients, fuel, materials, and semi-finished products for
their own use.

Others ● Companies that use undistributed earnings to engage in
substantive investments may exclude the amount when
calculating their profit-seeking enterprise income tax.

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