Page 13 - Biomedicine

Table 1 Preferential taxes

Item Incentives

Encourage ● For the purpose of encouraging the incorporation or expansion
investment in of biotech and new pharmaceutical companies, investors who
biotechnology and have invested in a biotech or new pharmaceutical company
investigational and have held the shares for more than three years are
new drug entitled to a deduction from the profit-seeking enterprise
businesses income tax payable for a period of five years starting from the
year the tax liability is incurred. The amount is up to 20% of
the acquisition cost of the shares.
Deductibles for ● Biotech and new pharmaceutical companies undertaking
R&D and talent R&D on new drugs or technologies are entitled to a deduction
training from their profit-seeking enterprise income tax liability. The
deduction is limited to 35% within five years from the year the
tax liability is incurred. When expenditure on research and
development for the current year exceeds the mean R&D
budget for the preceding two years, a tax deduction of up to
50% of the excess may be taken.
● 35% of the costs of training events focusing on the R&D and
manufacturing of investigational new drugs, high-risk medical
devices, and emerging biopharmaceutical products organized
by biotechnology and IND companies for their employees or in
which employees are assigned to take part shall be deducted
from the profit-seeking enterprise income tax beginning from
the year when the tax starts to be filed. When the expenditure
on professional development for the current year exceeds the
mean of the preceding two years, a deduction equal to 50% of
the excess may be taken.

Introduction of ● Royalty payments to foreign companies for imported new
technologies production technologies or products that use patents,
or machinery/ copyrights, or other special rights owned by foreign companies
equipment are, 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.

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