Taiwan extends tax concessions for smart tech, 5G investments
Taipei, Jan. 28 (CNA) The Legislative Yuan on Thursday passed amendments to the Statute for Industrial Innovation that extends tax concessions for smart machinery and 5G investments until 2024.
Prior to the amendments, businesses that invested in brand-new smart machines or brand-new hardware, software and technical services using 5G mobile network from Jan. 1, 2019, were eligible to receive government tax breaks until Dec. 31, 2021 and the end of 2022, respectively.
Based on the provisions of the statute, spending has to be in the same tax year and range from NT$1 million (US$35,952) to NT$1 billion to qualify for the tax concessions.
Minister of Economic Affairs Wang Mei-hua (王美花) said the concessions, which are being extended to Dec. 31, 2024, seek to promote improvements in smart industries and further stimulate digitization.
Wang said she hopes the extended tax concessions will speed up investment in smart equipment in preparation for the transformation of industry models in the post-pandemic era.
The government will continue to help promote smart industry transformation, she added.
As part of the amendments, the tax incentives now also apply to investments in cyber security products and services from Jan. 1, 2022 to Dec. 31, 2024.
In a press release Thursday, the Ministry of Economic Affairs (MOEA) said the tax incentives will help small and medium-sized businesses cover some of their operational costs while at the same time driving a new wave of investment in Taiwan.
Meanwhile, the ministry said the amendments will help Taiwan develop its 5G industry supply chain and drive multiple 5G vertical applications.
Regarding cyber security products, the ministry said it hopes the tax incentives will help to improve the country's overall information security protection capability in the short term. It is also hoped they will encourage the cyber security sector to invest in innovative research and development and allow Taiwan's information security industry to flourish.
According to the economics ministry, businesses can file for corporate income tax deductions when they invest in cyber security products alongside brand-new smart machinery or brand-new 5G hardware and software with a value of NT$1 million to NT$1 billion.
The corporate income tax deduction is 3 percent for investments spanning three years or 5 percent for one year, the ministry said, adding that the deductible amount cannot exceed 30 percent of the current year's profit-seeking enterprise income tax.
National Police Agency establishes stalking and harassment response teams05/26/2022 09:15 PM
Taiwan unveils NT$34.56 billion COVID-19 subsidy plan05/26/2022 07:53 PM
Taiwan upgrades website to expedite passport applications05/26/2022 07:33 PM
Taiwan, Lithuania hold high-level economic talks05/26/2022 07:12 PM
U.S. holds talks with Taiwan ahead of unveiling of China policy: MOFA05/26/2022 05:31 PM