Taiwan plans larger tax breaks for tech R&D
In an amendment to a statute on industrial innovation, Taiwan’s economy ministry has proposed larger tax breaks for research and development (R&D) activities of technology companies. The proposal envisions raising the corporate income tax break from 15% to 25%, in an attempt to keep technology companies and R&D capacities locally and encourage foreign companies to invest in Taiwan. If the amendment is approved into law, it will be implemented on 1 January 2023.
The measure is intended, among others, to ensure that Taiwan remains competitive in the field of semiconductor manufacturing, given that more and more countries offer incentives to their chip industries.