Statute for Industrial Innovation Article 10-2: 4 Entities Applied in the First Year
In order to strengthen the international competitiveness of country’s industries and consolidate the core position of the global supply chain, on January 19, 2023, government announced the addition of Article 10-2 of Statute for Industrial Innovation(產業創新條例) . For companies that engage in technological innovation in the country and occupy a key position in the international supply chain, the government offers a certain tax incentive in the range of 5%~25%, implementing the period January 1,2023 to December 31,2029.
Forward-looking innovation R&D investment(前瞻創新研發投抵), 25% incentive, requirements:
1. Research and development expenses amount to NTD$6 billion .
2. The ratio of research and development expenses to net operating income (R&D intensity) reaches 6%.
3. The effective tax rate reaches a certain rate (12% in 2023).
To be eligible for advanced equipment investment(先進設備投抵), 5% incentive, in addition to meeting the above-mentioned requirements, the equipment expenditure amount must also meet the threshold requirement of NTD$ 10 billion.
