President-elect Ma Ying-jeou (馬英九) promised technology tycoons yesterday he would relax the cap on investment in China as a priority after his inauguration on May 20.
The removal of the cap, usually 40 percent of a company’s net value, would help Taiwanese businesses compete with multinationals in China, boost the nation’s competitiveness globally and encourage businesses to keep their roots in Taiwan, Ma said.
Ma also promised to revise the regulations regarding income tax, inheritance tax and donation tax to create a friendlier investment environment.
“Our goal is to push for low taxes and simple tax policies and to give local businesses enough incentive so that they will continue investing in Taiwan,” Ma said after meeting seven business tycoons in Taipei’s Neihu District (內湖).
Ma visited heads of leading technology businesses including Lite-On Group (光寶集團) chairman Song Kung-yuan (宋恭源), Acer chairman Wang Jen-tang (王振堂) and Asustek (華碩電腦) chairman Jonney Shih (施崇堂).
After the two-hour closed door meeting, Ma said that he had often consulted local businesses as Taipei mayor and promised to keep up regular communication with the technology industry after his inauguration.
Song lauded Ma for his sincerity in listening to the opinions of industry leaders and urged him to remove the cap on investment in the Chinese market as soon as possible.
The business leaders also urged Ma to relax regulations for hiring foreign talent, especially from China, and to implement cross-strait direct links soon.
Accompanying Ma to meet the businessmen, economic affairs minister-designate Yiin Chii-ming (尹啟銘) promised to prioritize the removal of the investment cap after he is sworn in.
He also pledged to add a sunset clause to the Statute for Upgrading Industries (促進產業升級條例) by next year that would stipulate when and in what situations tax breaks would be revoked.
Under existing regulations, China-bound investment may not exceed 20 percent of a company’s net assets if those exceed NT$10 billion (US$323.5 million); 30 percent when net assets are between NT$5 billion and NT$10 billion; and 40 percent when net assets are less than NT$5 billion.