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Taiwan, located at an important geographical location in the center of Asia Pacific, has comprehensive infrastructure, a solid industrial foundation, and abundant human resources. The government is committed to providing comprehensive incentives for investments with the aim of creating a favorable investment environment and generating concrete benefits for companies to increase their competitiveness.
Taiwan provides "tax credit" and "non-tax-credit" investment incentives.
Tax incentives consist mainly of those set out in the "Statute for Industrial Innovation," which was promulgated in 2010 and amended in 2019.
The amended Statute provides for the following three types of tax incentives:
The Statute also includes a provision that allows exempts companies from the 5% business income tax on undistributed earnings from if they use undistributed earnings for substantive investment.
This provision also applies to multinational companies that have invested in Taiwan. In addition, companies that invest in smart machinery and 5G-related equipment are also eligible for investment tax credits.
Non-tax incentives consist mainly of subsidies for expenses related to technology research and development, and the provision of support to foreign companies and Taiwan companies that jointly invest in cutting-edge technologies.
Update: 2020.07.06
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