The Legislative Yuan yesterday passed amendments to the Statute for Industrial Innovation (產業創新條例), extending the period in which tax exemptions will be granted to four types of private investment and expenditure by 10 years until the end of 2029.
The act originally came with a “sunset clause,” which stipulated that it would expire at the end of this year.
The amendments extend the tax benefits by 10 years for research and development (R&D) expenditure, angel investors, employee stock bonuses and start-up firm investors.
Photo: George Tsorng, Taipei Times
Under the act, private companies that invest in R&D can choose between a tax reduction of 15 percent on their profit-seeking enterprise income tax or a 10 percent reduction for three consecutive years.
People who become shareholders by authorizing a firm to use their technologies or through their contributions to academic or R&D projects and who have worked for at least two consecutive years can choose either to file their securities transaction tax based on the stock price at the time they were awarded the shares or after they sold the shares, the amendments say.
This option also applies to employee stock bonuses. The current act limits this to shareholders of innovative companies.
The provision that angel investors who have invested at least NT$1 million (US$32,103) in a start-up would receive a tax deduction of 50 percent, or not more than NT$3 million, has also been extended by 10 years, the amendments say.
To encourage companies to spend their undistributed surplus earnings, the amendments stipulate that companies or their partner firms that use their undistributed surplus earnings on investments would be exempt from a 5 percent profit-seeking enterprise income tax.
The rule also applies to small and medium-sized companies, the amendment says.
The Industrial Development Bureau in April said that although pushing back the deadline of the sunset clause would reduce annual tax revenue by NT$30 billion, it is expected to boost investments and add NT$30.45 billion to annual revenue.
Additional reporting by Huang Pei-chun
A preclearance service to facilitate entry for people traveling to select airports in Japan would be available from Thursday next week to Feb. 25 at Taiwan Taoyuan International Airport, Taoyuan International Airport Corp (TIAC) said on Tuesday. The service was first made available to Taiwanese travelers throughout the winter vacation of 2024 and during the Lunar New Year holiday. In addition to flights to the Japanese cities of Hakodate, Asahikawa, Akita, Sendai, Niigata, Okayama, Takamatsu, Kumamoto and Kagoshima, the service would be available to travelers to Kobe and Oita. The service can be accessed by passengers of 15 flight routes operated by
Chinese spouse and influencer Guan Guan’s (關關) residency permit has been revoked for repeatedly posting pro-China videos that threaten national security, the National Immigration Agency confirmed today. Guan Guan has said many controversial statements in her videos posted to Douyin (抖音), including “the red flag will soon be painted all over Taiwan” and “Taiwan is an inseparable part of China,” and expressing hope for expedited reunification. The agency last year received multiple reports alleging that Guan Guan had advocated for armed reunification. After verifying the reports, the agency last month issued a notice requiring her to appear and explain her actions. Guan
GIVE AND TAKE: Blood demand continues to rise each year, while fewer young donors are available due to the nation’s falling birthrate, a doctor said Blood donors can redeem points earned from donations to obtain limited edition Formosan black bear travel mugs, the Kaohsiung Blood Center said yesterday, as it announced a goal of stocking 20,000 units of blood prior to the Lunar New Year. The last month of the lunar year is National Blood Donation Month, when local centers seek to stockpile blood for use during the Lunar New Year holiday. The blood demand in southern Taiwan — including Tainan and Kaohsiung, as well as Chiayi, Pingtung, Penghu and Taitung counties — is about 2,000 units per day, the center said. The donation campaign aims to boost
The Central Weather Administration (CWA) said a magnitude 4.9 earthquake that struck off the coast of eastern Taiwan yesterday was an independent event and part of a stress-adjustment process. The earthquake occurred at 4:47pm, with its epicenter at sea about 45.4km south of Yilan County Hall at a depth of 5.9km, the CWA said. The quake's intensity, which gauges the actual effects of a temblor, was highest in several townships in Yilan and neighboring Hualien County, where it measured 4 on Taiwan's seven-tier intensity scale, the CWA said. Lin Po-yu (林柏佑), a division chief at the CWA's Seismological Center, told a news conference
RSS