Page 35 - 2024 BRAVO! TAIWAN_en

Benefits and Incentives to Attract Investors

In order to encourage investment by domestic and foreign investors, Taiwan offers a variety of
benefit and incentive programs. These provide for income tax exemptions and R&D subsidies
based on a company's R&D investment. To increase investment and develop trade, the
government has created science parks, technology industrial parks, agricultural technology
parks, and free trade zones to increase incentivizes for investment and lower operating costs for
companies. Advantageous Environment

Tax incentives

The following tax incentives are offered to businesses in science parks, technology industrial
parks, agricultural technology parks, bonded factories, bonded warehouses, businesses in logistics
centers, and free trade zones.

Agricultural
Technology Science Bonded Bonded Logistics
Indirect Tax Incentives Industrial Technology Free Trade Zones
Parks Parks Parks Factories Warehouses Centers
Duty free
Commodity tax free
VAT free
Duty free Tobacco and alcohol tax
free
Import of Raw Materials and Commodity tax free No tobacco health and
Machinery VAT free welfare
No trade promotion service fee surcharge
No trade promotion service Duty free
fee Commodity tax free
No port dues VAT free
Import of Goods for - No trade promotion
service fee
Use in Operations No port dues
Duty free No Tobacco and Alcohol
Duty free Commodity tax free Tax
Import of Fuel, Materials and Commodity tax free VAT free No Tobacco Products
Semi-Finished Materials VAT free - No trade promotion service Health and Welfare
No trade promotion service fee fee Surcharge (including
No port dues setup period)
Duty free
Commodity tax
Duty free
Import of Self-Use Commodity tax free free
VAT free
Machines, Equipment VAT free No trade -
No trade promotion service fee
promotion
service fee
Export of Products/ Services
to a Foreign Country Zero business tax rate and exemption from excise tax
Purchase of Raw Materials,
Fuel, Supplies, Semi-
Finished Materials, and Zero business tax rate and exemption from excise tax
Machinery from a Non-
Bonded Area in Taiwan
Profit seeking enterprises
(limited to ROC enterprises
engaging in preparation or Income from the sale of
supporting actors within the goods is exempt from
national territory) engaging income tax for profitable
in cargo purchasing, import, businesses
storage, or transport within
free trade port areas
Source: Maritime and Port Bureau, MOTC (http://www.motcmpb.gov.tw)

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