Sat, Dec 21, 2013 - Page 13 News List

Cabinet okays rules on economic zones

By Camaron Kao  /  Staff reporter

The Cabinet yesterday agreed to extend the period for applying for tax-reduction measures for foreign employees working in the planned free economic pilot zones to attract workers, the Council for Economic Planning and Development (CEPD) said.

According to a draft proposal on special regulations governing the free economic pilot zones (自由經濟示範區特別條例), the income tax for foreign employees would be halved for the first three years. Moreover, their income would not be subject to the alternative minimum tax (AMT).

Companies in the pilot zones may apply for the tax-reduction measures until the plan expires — tentatively set at 10 years — instead of an earlier proposal that the tax reduction measures be limited to three to five years after the plan is implemented, Connie Chang (張惠娟), executive director of the council’s center for economic deregulation and innovation, told reporters.

The Cabinet also plans to allow hospitals in the zones to hire foreign doctors, excluding those from China, she added.

The draft proposal will also allow three to five universities to set up a division to provide education programs to foreign students and hire professors from overseas, but not from China. These universities will be able to set up tuition fees independently.

The proposal will be submitted to the legislature for review on Thursday next week, Chang said.

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