Page 14 - Biomedicine

Item Incentives

Investment ● Smart machinery: Automatic scheduling, flexible, or mixed-
in smart model production lines that utilize big data, AI, and IoT.
machinery/5G
● 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 ● For the purpose of encouraging high-ranking professionals
investment / of biotech and new pharmaceutical companies or technology
Stock-based investors to hold shares, the investors will be exempted
employee from comprehensive tax or profit-seeking enterprise income
compensation tax liability for the current year. Tax is collected only after
cost is deducted from the income obtained according to the
contemporary price upon actual transfer.
● Supported by a majority of the directors that attended the
Board of Directors meeting and account for at least two-thirds
of all directors and upon approval by the competent authority,
biotechnology and IND companies may issue stock certificates
to high-ranking professionals or technical investors. Holders
of the said stock certificates in the preceding paragraph may
subscribe shares in certain quantities at the price agreed
upon. The subscription price may be unrestricted by Article
140 of the "Company Act" where it says that the subscription
price may not be below par value. The obtained shares are
subject to income tax according to the requirement in the
preceding paragraph about "deductibles for income from
technical shares."
● The worth of shares acquired through stock-based employee
compensation can be excluded from the taxable income
for that year (up to NT$5 million). In addition, those that
meet related criteria are eligible for reduced taxes based on
"acquisition price" or "transfer price," whichever is lower.

12