The Ministry of Finance has received applications to repatriate NT$355.9 billion (US$12.83 billion) in overseas funds since a repatriation law took effect on Aug. 15, 2019, the ministry said at a weekly Cabinet meeting on Thursday.
As of Sept. 14, the ministry had approved about NT$301.7 billion in repatriated overseas funds, including NT$180 billion from for-profit enterprises and NT$121.7 billion from individuals, the ministry said in a statement.
The legislature passed the Act on the Use of and Taxation on Inward Remittances of Overseas Funds (境外資金匯回管理運用及課稅條例) in July 2019, as part of government incentives to help investors rebalance their management of global funds and encourage them to return capital to Taiwan.
Photo: Clare Cheng, Taipei Times
It provides a tax rate of 8 percent in the first year and 10 percent in the second for repatriated funds, with further reductions to a preferential rate of 4 percent in the first year and 5 percent in the second if the funds are returned and invested on time.
Since the law was enacted, about NT$113.7 billion of repatriated funds were invested in local industries, mainly in the information and communications industry, and generated NT$25.5 billion in tax revenue, the ministry said.
“As the approval of repatriation applications takes time, and the repatriation and investment undergo certain procedures, the repatriation and investment amounts will likely continue to increase,” the ministry said.
The ministry said the US-China trade dispute and the COVID-19 pandemic have had repercussions on the global economy in the past few years.
“However, with full cooperation between the Ministry of Finance, the Ministry of Economic Affairs, the Financial Supervisory Commission and the central bank, the results of implementing the overseas funds repatriation law are in line with expectations and inject energy into the domestic economy,” it said.
Apart from the repatriation law, the return of Taiwanese manufacturers and policy efforts to facilitate domestic investment have also reignited Taiwan’s economy over the past two years, government officials and economists have said.
According to data from the Ministry of Economic Affairs’ three major investment incentive programs for overseas Taiwanese companies, the ministry had as of Friday approved applications from 1,002 companies for a combined NT$1.34 trillion since it launched the incentive programs in early 2019.
The investments are expected to create 113,775 jobs, the ministry said in a statement on Friday, after it had approved the plans of four more companies.
Those include Jyu Sin Steel Co (鉅昕鋼鐵), Chiao Kuo Energy Technology Co (喬國能源科技) and Polymate Plastic Co (百納塑膠), to invest a combined NT$1.1 billion in Taiwan.
The programs, which provide participating companies with assistance for financing, taxation, land, utilities and labor, remain valid for one year as part of government efforts to assist overseas Taiwanese companies to reposition themselves in the global market and stimulate economic momentum, the ministry said.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry, which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday at a rally for Liberal Democratic Party candidate Daishiro Yamagiwa in Kanagawa Prefecture ahead of a snap election on Sunday. “Whether it’s selling food or
CONCERNS: Tech companies investing in AI businesses that purchase their products have raised questions among investors that they are artificially propping up demand Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday said that the company would be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made.” “We will invest a great deal of money,” Huang told reporters while visiting Taipei. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” Huang did not say exactly how much Nvidia might contribute, but described the investment as “huge.” “Let Sam announce how much he’s going to raise — it’s for him to decide,” Huang said, referring to OpenAI
The global server market is expected to grow 12.8 percent annually this year, with artificial intelligence (AI) servers projected to account for 16.5 percent, driven by continued investment in AI infrastructure by major cloud service providers (CSPs), market researcher TrendForce Corp (集邦科技) said yesterday. Global AI server shipments this year are expected to increase 28 percent year-on-year to more than 2.7 million units, driven by sustained demand from CSPs and government sovereign cloud projects, TrendForce analyst Frank Kung (龔明德) told the Taipei Times. Demand for GPU-based AI servers, including Nvidia Corp’s GB and Vera Rubin rack systems, is expected to remain high,
RSS