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Investment Incentive

Measures

1 Tax incentives

Taiwan's profit-seeking enterprise income tax rate is 20%. To encourage
foreign companies to invest in Taiwan, support industrial innovation, and promote
industry-academia collaboration, foreign companies are eligible for the following
preferential taxes (Table 1):

Table 1 Preferential taxes

Item Incentives

R&D and ● Up to 15% of the company's R&D expenditures may be
introduction deducted from its profit-seeking enterprise income tax for
of technology current year.
or mechanical
equipment ● Royalty payments to foreign companies for imported
new production technologies or products that use
patents, copyrights, or other special rights owned by
foreign companies is, with the approval of the Industrial
Development Bureau, MOEA, exempt from the corporate
income tax.
● Imported machinery which local manufacturers cannot
produce are eligible for duty-free treatment.

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

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