Page 11 - 2024 BRAVO! TAIWAN_en

and promotion of the New Southbound Policy and Promoting the New Model for Business Climate
strengthening of links with advanced industrial nations.
¾ Building an Excellent Business Economic Development 2.0
Environment

To boost Taiwan's investment potential, the government The president has put forth the next phase objectives for
financial policy, which are based on the existing 5+2 Innovative
continues to relax regulations, remove investment Industries Plan, in the New Model for Economic Development 2.0
barriers, and build a robust investment environment. to secure opportunities for Taiwanese and foreign investments
Taiwan has made significant revisions to the Company in Taiwan. These objectives align with global restructuring
Act, Business Mergers and Acquisitions Act, and of supply chains. The plan promotes the Six Core Strategic
enterprise regulations to create an environment friendly Industries: information and digital industries, outstanding
to business and industrial innovation. In the case of the information security, Taiwan precision health care, national
Business Mergers and Acquisitions Act, companies defense and military strategy, green electricity and renewable
were previously required to disclose directors' vested energy, people's livelihoods, and combat preparedness.
interests in mergers and acquisitions in the reasons for Through enhancing the Taiwanese image, providing flexible
convening a shareholders' meeting. Under the revised financial support, and fostering digital and bilingual talent,
Act, the scope of application of the shareholder's right Taiwan will become a key force in the future global economy.
to oppose claims for share acquisitions in mergers The government will actively guide private funds to physical
and acquisitions has been expanded to protect its investments and public works to seize opportunities in
exit mechanisms. In addition, the scope of application restructuring global supply chains in the post-pandemic era.
of asymmetric mergers and acquisitions has been Positioning Taiwan as a high-end manufacturing center, high-
relaxed. Mergers and acquisitions can now be carried tech R&D center, advanced semiconductor production center,
out after resolution by the board of directors, without and green energy development hub will raise Taiwan's strategic
going through the shareholders' meeting. Revisions also position and economic resilience, as well as usher in another two
clarify that the individual shareholders of the acquired decades of prosperity for Taiwan's economy.
new enterprise can choose to defer tax payments in full
for the share consideration received; they also clarify
the types of identifiable intangible assets, and relax the High-end Manufacturing Hub
amortization calculation standards for intangible assets In response to the US-China trade war, high-end servers and
generated by mergers and acquisitions. This simplifies tax other components of high-end manufacturing supply chains
estimations and can improve the efficiency of corporate continue to return operations to Taiwan, as the coronavirus
mergers and acquisitions while taking into account pandemic highlights the importance of decentralized organization.
the protection of shareholders' rights and interests. Through investment tax credits under the "Three Major Programs

At the same time, the government is accelerating for Investing in Taiwan" and the "Statute for Industrial Innovation"
the promotion of public construction, injecting energy manufacturers will be encouraged to engage in high-value-added
into domestic demand, and actively solving land, production and introduce smart manufacturing to build Taiwan into
labor, water, electricity and other investment-related a high-end manufacturing hub.
challenges to overcome bottlenecks in industrial
operation, boost investor confidence and attract more Advanced Semiconductor Processing
investment and talent to stimulate Taiwan's economic Center
growth. Also, the Commodity Labeling Act has been
significantly revised to reconcile consumer protection AI, 5G and electric vehicles are powerful tools for next-
with the efficiency of business operators and better generation industrial competition, while semiconductors are
align with international standards. the foundation of industrial digital transformation. In order to

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