Taiwan mulls expanding tax incentives to attract foreign professionals

Taipei, March 19 (CNA) Taiwan is considering lowering the salary threshold for tax incentives to attract foreign professionals, National Development Council Minister Paul Liu (劉鏡清) said Wednesday.

During a legislative session addressing Taiwan's shortage of artificial intelligence (AI) talent, Liu said the government plans to amend the Act for the Recruitment and Employment of Foreign Professionals to enhance incentives.

Under the current law, foreign professionals approved to work in Taiwan for the first time who earn an annual salary in excess of NT$3 million (US$90,900) are eligible for a 50 percent tax reduction on income above that threshold for the first five years.

In addition, their overseas income is exempt from inclusion in the calculation of basic taxable income.

Liu said the government is exploring the possibility of lowering the NT$3 million salary threshold, citing Singapore's policies as a reference.

Following the session, Liu noted that the proposal has yet to be finalized, as further discussions with the Ministry of Finance are required before the draft amendment is submitted for legislative review, which is expected to take place before the end of May.

Other than tax incentives, Taiwan has adopted a multifaceted approach to attracting international professionals, Liu said. These efforts include analyzing industry data to identify key talent needs and using AI-driven tools to connect with professionals across different regions.

As of the end of 2024, Taiwan had recruited 71,000 foreign professionals, including 12,000 recipients of the Taiwan Employment Gold Card, a program designed to attract highly skilled workers.