The government is considering allowing companies to issue stock warrants to swap with individuals or companies for technology, Cabinet Spokesman Chen Chi-mai (
A stock warrant is a company-issued certificate that represents an option to buy a certain number of shares at a specific price before a predetermined date. A stock warrant has a specified value and can be traded on the open market.
Speaking on behalf of Premier Yu Shyi-kun, Chen said the new measure will allow investors a five-year tax break and stimulate research and development.
The Ministry of Economic Affairs has proposed to amend the Statute for Upgrading Industries (促進產業升級條例) to encourage more high-tech investment. Under a draft amendment to the statute, companies whose stock warrants represent under 20 percent of their stake would be able to issue issue stock warrants to individuals with a five-year income tax break.
The government will start levying income tax as soon as these individuals change their warrants into real shares.
The Cabinet plans to approve related legislation next Wednesday, Chen said.
The new measures were outlined on Thursday following a meeting attended by Yu, Minister of Economic Affairs Ho Mei-yueh (
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