Accelerated depreciation on fixed assets for R&D

	Investment Incentives
	Tax Benefits

Benefits for the purchase of automation equipment

a. The said procured equipment or technology may credit a certain percentage of the investment against the amount of profit-seeking enterprise income tax payable for the then current year. For the purchase of production technology, ten percent (10%) may be credited. For the purchase of equipment, eleven percent (11%) may be credited.

b. Any investment plan that includes the purchasing of equipment for automation can qualify for a low-interest preferential loan.
　
Benefits for R&D expenditure

a. Expenditure concurred for developing new products, improving production technology, or improving label-providing technology may credit thirty percent (30%) of the investment against the amount of profit-seeking enterprise income tax payable for the then current year.

b. Instruments and equipment purchased by for exclusive R&D purposes, experimentation, and/or quality inspection may be accelerated to two years.

c. If a company is undertaking research for new industrial products, it can apply for a low-interest loan.

d. Traditional industries developing new industrial products, may apply for guidance from professionals within the government.

e. Guidelines for Considering Expenditures Incurred by Companies Involved in R&D Commissioned by Local Biotech and Pharmaceutical Companies as Investment - when a biotech company commissions a contract research organization to conduct clinical trials, it is considered to be equivalent to R&D conducted by the company itself and therefore eligible for a thirty percent (30%) deduction in business tax due.
　
Personnel training

a. If a company when training staff, registration for business-related business training course, may credit thirty percent (30%) of the training cost against the amount of profit-seeking enterprise income tax payable for the then current year
　
Benefits for newly emerging strategic industries

a. A profit-seeking enterprise may credit up to twenty percent (20%) of the price paid for acquisition of such stock against the profit-seeking enterprise income tax. An individual may credit up to ten percent (10%) of the price paid for acquisition of such stock against the consolidated income tax payable in the then current year.

b. A company, within two years from the beginning date for payment of the stock price by its shareholders, selects, with the approval of its shareholders meeting, the application of an exemption from profit-seeking enterprise income tax and waives the shareholders investment credit against payable income tax as set forth in the preceding Article; provided, however, that once the selection is made, no change shall be allowed.
　
Benefits for investment in equipment or technology used for pollution control

a. Investment in equipment or technology used in pollution control may credit thirteen percent (13%) of the equipment expenditure, and five percent (5%) of the expenditure on technology against the amount of profit-seeking enterprise income tax payable for the then current year.

b. Importation of equipment for air-pollution control, noise control, vibration control, environmental inspection, water pollution control, and waste management equipment may all be imported tax free.

c. Investment plans for the planned purchase of pollution control equipment, pollution control engineering, and waste management may qualify for a low interest loan.
　
6. Benefits for investment in energy saving equipment or technology

a. Investment in equipment or technology used for employing new and clean energy, energy saving systems, or energy efficiency may credit five to twenty percent (5%-20%) of the investment against the amount of profit-seeking enterprise income tax payable for the then current year.

b. Investment plans for planned implementation of energy saving systems can apply for a low-interest loan. c. Amortization on equipment or technology used for employing new and clean energy may be reduced to two years.
　
Benefits awarded to scientific industry companies (excluding those located in an official science-based industrial park) are contingent on recognition by the MOEA that the company in question does qualify as a company with the scientific industry sector. From Jan 1, 2002, equipment imported from overseas by such companies is exempt from import and business tax, provided said equipment is not available in Taiwan nor produced by local manufacturers.
　
Import tax exemption for imported machinery and equipment

The following machinery and equipment to be used by a manufacturer or technical service company conforming to the rules for factory administration, in developing new products, improving quality, increasing productivity, conserving energy, promoting reuse of waste or improving manufacturing process, or exclusively in research, experiment or quality control, and where said equipment is not available in Taiwan nor produced by local manufacturers, and with the approval of the MOEA, shall be exempt from import tax.
　
Incentive for operations headquarters

To encourage internationalization of the industry, companies that set up operations headquarters in Taiwan, having a certain scale and being of major economic benefit to Taiwan, will be exempt, in certain categories, from profit-seeking income tax. The following categories apply:

a. The income derived from provision of management services or R&D services.

b. The royalty payment received under its investments to its affiliates abroad.

c. The investment return and asset disposal profits received under its investments to its affiliates abroad.