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Taiwan to encourage R&D investments

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CIOL Bureau
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TAIPEI: Taiwan's Legislature adopted the Statute for Industrial Innovations, which help in offering tax breaks for R&D investment to support innovations by businesses in a variety of industries.

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Sources indicated that, the latest law does not contain the formerly anticipated decrease in business income tax, although the slash would be realized with another modification in the current Income Tax Act to be discussed by policymakers later this week. Cutting of present taxes from 20 per cent to 17 per cent is what the ruling Kuomintang supports.

The latest law, implemented on April 16, replaces the Statute for Industrial Upgrading that had expired at the end of the year 2009.

A major feature of Taiwan's latest Statute for Industrial Innovations include guidelines that promise that up to 15 p.c of R&D investments could be business income tax credit, which might not go beyond 30 p.c of the tax due.  Further, for extra employees employed exclusively for innovation-related activities, employers could apply for a monthly subsidy of about NT$10,000 (US$319) per worker for one year.

It has also been pointed out that a park would need to scrutinize the percentage of its land use.

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