Lawmakers yesterday expressed skepticism about the Ministry of Finance's Alternative Minimum Tax proposal, saying that the exclusion of individuals' overseas income and the continuation of five-year tax breaks for prospective businesses have created loopholes in the landmark taxation reform.
The ministry's revised draft proposal obtained the Cabinet's approval late last month.
Ahead of formal legislative discussion of the proposal next week, the Taiwan Solidarity Union's (TSU) legislative caucus yesterday invited Minister of Finance Lin Chuan (
TSU Legislator Kuo Lin-yung (
In response, Lin said that taxing overseas income has been listed as a mid-term goal. However, as taxation of foreign income involves complex factors and requires time to draw up well-rounded measures, the ministry will address the controversial issue in the next stage of tax reforms.
Chien Hsi-chieh, convener of the pan-purple alliance, said that only by establishing a fair taxation system can a nation develop a sound financial system.
However, 15 of Taiwan's 40 richest people managed to pay tax at a rate of just 1 percent, which might lead to serious social problems and give rise to criticism that the government robs the poor to benefit the rich, he said.
TSU Legislator Lai Shin-yuan (賴幸媛) said she disapproved of the proposal's
continuations of the five-year tax exemption for new businesses in
accordance with the Statute for Upgrading Industries (促進產業升級條例).
These companies will not be included in the new scheme's tax base.
She added that this design has fallen short of the public's expectations for
building an integrated tax system.
Lin Mei-hsueh (林美雪), director of the Industrial Development Bureau's
industrial policy division, said the government has to keep its promises to
businesses that decided to invest in Taiwan because of the five-year
tax-free incentive.
Maintaining consistency in the implementation of government policies is more
important than helping prospective business groups to turn a profit, she
said.
WEAKER ACTIVITY: The sharpest deterioration was seen in the electronics and optical components sector, with the production index falling 13.2 points to 44.5 Taiwan’s manufacturing sector last month contracted for a second consecutive month, with the purchasing managers’ index (PMI) slipping to 48, reflecting ongoing caution over trade uncertainties, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The decline reflects growing caution among companies amid uncertainty surrounding US tariffs, semiconductor duties and automotive import levies, and it is also likely linked to fading front-loading activity, CIER president Lien Hsien-ming (連賢明) said. “Some clients have started shifting orders to Southeast Asian countries where tariff regimes are already clear,” Lien told a news conference. Firms across the supply chain are also lowering stock levels to mitigate
IN THE AIR: While most companies said they were committed to North American operations, some added that production and costs would depend on the outcome of a US trade probe Leading local contract electronics makers Wistron Corp (緯創), Quanta Computer Inc (廣達), Inventec Corp (英業達) and Compal Electronics Inc (仁寶) are to maintain their North American expansion plans, despite Washington’s 20 percent tariff on Taiwanese goods. Wistron said it has long maintained a presence in the US, while distributing production across Taiwan, North America, Southeast Asia and Europe. The company is in talks with customers to align capacity with their site preferences, a company official told the Taipei Times by telephone on Friday. The company is still in talks with clients over who would bear the tariff costs, with the outcome pending further
Six Taiwanese companies, including contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), made the 2025 Fortune Global 500 list of the world’s largest firms by revenue. In a report published by New York-based Fortune magazine on Tuesday, Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), ranked highest among Taiwanese firms, placing 28th with revenue of US$213.69 billion. Up 60 spots from last year, TSMC rose to No. 126 with US$90.16 billion in revenue, followed by Quanta Computer Inc (廣達) at 348th, Pegatron Corp (和碩) at 461st, CPC Corp, Taiwan (台灣中油) at 494th and Wistron Corp (緯創) at
NEGOTIATIONS: Semiconductors play an outsized role in Taiwan’s industrial and economic development and are a major driver of the Taiwan-US trade imbalance With US President Donald Trump threatening to impose tariffs on semiconductors, Taiwan is expected to face a significant challenge, as information and communications technology (ICT) products account for more than 70 percent of its exports to the US, Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) president Lien Hsien-ming (連賢明) said on Friday. Compared with other countries, semiconductors play a disproportionately large role in Taiwan’s industrial and economic development, Lien said. As the sixth-largest contributor to the US trade deficit, Taiwan recorded a US$73.9 billion trade surplus with the US last year — up from US$47.8 billion in 2023 — driven by strong
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