The Cabinet of Ministers approved tax incentives for high-tech industries.
To support its semiconductor industry and keep its top spot in the global chip supply chain, Taiwan has increased tax incentives for businesses engaging in technology research and manufacturing.
Tech firms will be able to cut their income tax by a quarter.
Tech companies will now be able to reduce their income tax by a quarter if their R&D spending reaches a certain level under amendments approved by Taiwan’s cabinet.
To encourage businesses to continue investing in research and development in Taiwan, the measure also offers an additional 5% tax break to those whose investment in cutting-edge equipment reaches the desired level.
More companies and nations are attempting to shift production away from Taiwan and the homegrown behemoth Taiwan Semiconductor Manufacturing Co. as global concerns about the island’s concentration of chip manufacturing grow.
The Taiwanese government aims to support these efforts and enhance Taiwan’s position by attracting and promoting foreign investment in the domestic semiconductor industry as well as new tax benefits to counteract these actions.