Page 14 - Semiconductors

Item Incentives

Investment ● Smart machinery: Automatically scheduled,
in smart flexible, or mixed-model production lines that
machinery / 5G utilize big data, AI, and IoT.
● 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 ● The wor th of shares acquired through
investment / technology investment/stock-based employee
Stock-based compensation can be excluded from the
employee taxable income for that year (up to NT$5
compensation million). In addition, those that meet related
criteria are eligible for reduced taxes based on
"acquisition price" or "transfer price," whichever
is lower.

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