Page 13 - Semiconductors

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
introduction of may be deducted from its profit-seeking
technology or enterprise income tax for current year.
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.

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