National Property Bureau launches new land rental program for industries in Taiwan

November 6, 2006

In order to encourage new investment projects, the Ministry of Finance National Property Bureau has launched the "Four Years, Six Half" program, which offers preferential land rent rates to all industries for ten years. The bureau plans to accept applications for the program from the start of next year until Dec. 2009.

The bureau previously implemented a similar incentive program in 2003 in which land rents were waived for the first three years, charged at half the cost for the next five years, and then charged at full rent starting in the ninth year. The program ended in December of last year.

The new program expands these incentives, with free rent for the first four years and half cost for the next six years, while the tenant agrees to rent the land for twenty years total.

"Four Free, Six Half " program aims to help create a "superior" investment environment and encourage more investment, said Bureau Secretary-General Jhuang Cui-yun.

The new program is broader in scope than its predecessor, the "Three Free, Five Half "program, which was primarily aimed at the high-tech industries. The "Four Free, Six Half "program applies to a wider range of industries, but requires the approval of the local government and the Center for Economic Planning and Development, said Jhuang.

The eligibility requirements and regulations for the "Four Free, Six Half" plan were created by local governments in conjunction with a cross-agency committee formed by the CEPD. Under the plan, tenants rent land for a total of twenty years.

Nearly all of the land available under the "Three Free, Five Half" program has been rented out to nine companies at the Dingpu Technology Park and Shulin Datong Technology Park, said Jhuang.

Under the program, the Dongpu Park offered 7.13 hectares of land, while the Shulin Datong Park in Taipei offered 7.46 hectares.

The Bureau estimates that companies are saving NTD 170 million in land rent costs at the Dongpu Park and NTD 140 billion at the Shulin Datong Park.

(Economic Daily News)

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