The Ministry of Finance (MOF) yesterday softened its stance on taxing funds returning to Taiwan as part of an actual investment.
“In a bid to attract foreign funds back to Taiwan, tax incentives and exemptions may be extended for a period of time as long as they are allocated toward tangible investments,” Minister of Finance Chang Sheng-ford (張盛和) told lawmakers, adding that the ministry is still discussing the measure with the Executive Yuan.
Chang also voiced his support for Chinese National Party (KMT) presidential candidate Hung Hsiu-chu’s (洪秀柱) proposed reforms to the capital gains tax, and said that he has not ruled out additional tax cuts provided the nation’s financial situation would not be adversely affected.
Chang is hoping that the estimated NT$15 billion (US$454.52 million) in lost capital gains tax revenues would be offset by expected gain in daily turnover on the Taiwan Stock Exchange.
“I am not opposed to tax cuts, as the measure is among the tools available to the finance ministry to deal with an inclement economic climate,” he said.
He also said that he welcomes foreign companies interested in investing in Taipei 101 to submit proposals to the Ministry of Economic Affairs’ Investment Commission, now that the government holds a majority stake in Taipei Financial Center Corp (TFCC, 台北金融大樓公司), the firm that operates the landmark building.
Chang denied hearing rumors that Ting Hsin International Group (頂新國際集團) intends to sell its stake in the skyscraper to Blackstone Group, a New York-based investment management firm.
“The situation is different now, with the Ministry of Finance holding 52 percent, the government is no longer at risk of losing managerial control of Taipei 101,” Chang said.
Ting Hsin in March said that its plan to sell its 37 percent stake to Malaysian conglomerate IOI Properties Group Bhd had fallen through amid criticism that foreigners might be able to gain managerial control of the iconic structure. Ting Hsin’s reputation was also damaged by a series of food safety scandals last year.
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