Both Kwang Yang Motor Co (
"We have recentlty submitted the [business headquarters] application to the Ministry of Economic Affairs," said Kwang Yang spokesman Chen Fu-an (陳福安).
"If approved, we will enjoy a business income tax exemption on revenues from overseas investments, while our shareholders will be able to offset consolidated income tax for five years," Chen said. For instance, Kwang Yang will save up to NT$15 million in taxes per year on royalty income alone, he added.
Meanwhile, Sanyang spokesman Yeh Feng-ming (葉峰明) said the motorcycle maker may also file an application soon. "It is a good practical decision," he said.
Kwang Yang and Sanyang are two of about 80 local companies that have expressed a willingness to set up their business headquarters in Taiwan, an official at the ministry's Industrial Development Bureau said yesterday.
"We formed a special unit in March to help companies set up their business headquarters here," said the official who declined to be named. He said the unit will offer one-stop services to companies interested in taking advantage of the investment incentives.
Eligibility for the program requires that a company's international accumulated business revenue must exceed NT$1.5 billion per year, as well as domestic annual sales in excess of NT$1 billion.
In addition, the firms must employ at least 100 domestic staff, with half of that number possessing college degrees, he added.
While the requirements for qualified corporations appear to be designed for large companies, the central focus of the government plan is to attract capital back to Taiwan from China.
"Of course the government is looking to attract China-based businesses back to Taiwan," said Kwang Yang's Chen. "If approved we will increase investment in Taiwan, spending at least NT$500 million on new equipment design and development, especially for low-pollution bikes and motorcycles with larger engines, each year."
The government has said it wanted to attract 200 companies to set up their business headquarters in Taiwan by 2010, specifically targeting firms that have already shifted operations across the Strait, including Uni-President Enterprises Corp (
"More than 80 local companies we contacted said they are interested in making Taiwan their corporate home," the IDB official said, adding that eight companies including Lite-On Technology (
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