New taxation regulations for foreign professionals in Taiwan have taken effect as of the beginning of 2008, according to an announcement by the Ministry of Finance (MOF).

The new regulations provide preferential tax incentives to foreign professionals employed in Taiwan, and are aimed at improving the overall environment for recruiting and attracting professional talent from other countries. The regulations, which address a general shortage of professional talent, are expected to benefit up to 3,000 foreign professionals in Taiwan, said the Central News Agency.

The regulations apply to foreign professionals that reside in Taiwan for more than 183 days in a calendar year and that do not possess dual nationality. In addition, foreign professionals working in Taiwan are limited to the fields stipulated in the Employment Services Act, such as financial services, civil engineering, construction technology, medical care, the culinary industry (chefs) and so forth.

Under these regulations, monthly salaries paid by employers as taxable income must be at least NTD 100,000 or higher. However, in special circumstances, this condition can be waived with the approval of the MOF. An MOF official noted that exceptions have been granted for employees involved with several projects under the National Science Council.

The MOF said that employers who meet the above conditions may report as operating expenses payments for foreign professional and their dependents’ round-trip travel to and from Taiwan, travel for periodic visits to the home country, mover’s fees, utility bills, telephone bills, rent, rental property repairs, and school tuition fees as stipulated in the employment contract and that qualified foreign professionals do not have to include such payments as taxable income.

 (Central News Agency)

Taiwan once again ranked sixth worldwide for its business environment on the final 2007 report by US-based business research group Business Environment Risk Intelligence (BERI).

The Ministry of Economic Affairs (MOEA) recently announced Taiwan's performance on the BERI report, which is issued three times a year. Taiwan maintained the same scores for its business environment and its Profit Opportunity Recommendation (POR) throughout 2007, said the ministry.

Among the 50 countries surveyed, Taiwan ranked among the top countries, the top five of which include Switzerland, Singapore, Netherlands, Japan, and Norway.

Taiwan received the highest possible 1A rating on the report, which indicates Taiwan is a low risk, suitable country for investment. BERI forecasts that Taiwan's business environment will see improvement both next year and in five years, with POR scores of 73 and 74, respectively. BERI also projects that Taiwan will continue to maintain its 6th ranking globally.

Among Asian countries, Taiwan maintained its third place ranking, placing behind Singapore (2nd, POR of 79) and Japan (4th, POR of 74). Taiwan placed ahead of China (17th, POR of 61), Malaysia (19th, POR of 60), South Korea (21st, POR of 58), and Thailand (26th, POR of 49), India (31st, POR of 47), and the Philippines (35th, POR of 44).

The report also evaluates countries using three main indices: operations risk index, political risk factor, and remittance and repatriation factor.

On this last report of 2007, Taiwan received an operations risk score of 72, ranking 3rd among all countries and placing behind Singapore and Switzerland. This ranking and score remained the same from first two reports of 2007. BERI projects that in 2008 and 2009 Taiwan's operations risk will stabilize and continue to improve.

In addition, Taiwan's political risk index score was 59 points, ranking 15th among all countries. This ranking and score remained the same from BERI's first two reports of 2007. Taiwan ranked third among Asian countries on this secondary index, behind Singapore (1st, score of 76) and Japan (14th, score of 60).

BERI noted that Taiwan's political risk index score reflects uncertainty before the legislative and Presidential elections.

Taiwan's remittance and repatriation factor score was 85, ranking 5th among all countries. This ranking and score remained the same from the first two reports of 2007. Among Asian countries, Taiwan ranked behind Japan (1st, score of 97) and Singapore (4th, score of 86).

BERI said that Taiwan's surpluses in trade and balance of payments have contributed to its high score on the remittance and repatriation factor. The group projects that foreign direct investment in Taiwan will enjoy stable growth in 2008 and 2009.

(Central News Agency)

Taiwan's science park areas have established a strong industry foundation, and are expected to produce a yearly output worth NTD 3 trillion by 2017, according to the Council for Planning and Economic Development (CEPD).

The CEPD quoted this figure from a recent plan and report submitted by the National Science Council (NSC).

From when it began investing in the science parks in 1997, the government projects that it will have spent a total of NTD 214.1 billion in the parks by 2017, according to the report.

The parks have yielded major benefits for Taiwan with regards to forming a solid industry foundation, raising competitiveness, and nurturing the high-tech industries, says the NSC report.

The NSC says that Taiwan's science-based industries is moving towards a model of high added-value, R&D and innovation. Planning began in the 1980s for the parks, which are distributed under the umbrella of three major park systems: the Hsinchu Science Park (HSP), Southern Taiwan Science Park (STSP), and Central Taiwan Science Park (CTSP). Taiwan's science park areas cover nearly a total of 4,000 hectares, says the report.

According to the report, annual productivity per person at the HSP surpassed NTD 9 million in 2006, which is nearly 2.5 times higher than that of the conventional manufacturing sector. HSP operating revenues also accounted for 1/10th of all operating revenues for the manufacturing sector as a whole for the year.

The HSP is the largest of the park systems, and consists of six locations: Hsinchu, Jhunan, Tongluo, Longtan, Hsinchu Biomedical Park, and Ilan. The HSP covers a total of 1,400 hectares.

The STSP and CTSP are expected to eventually bring considerable economic benefit as they continue to develop, says the report The STSP currently consists of two locations: Tainan and Kaohsiung, while the CTSP consists of three bases in Taichung, Huwei in Yunlin County, and Houli.

(Central News Agency)

Taiwan posted a record-breaking trade surplus in 2007, according to the Ministry of Economic Affairs Bureau of Foreign Trade (BOFT).

Although official customs figures have yet to be announced, the BOFT said that from Jan. 1, 2007, to Dec. 28, 2007, Taiwan's foreign trade volume totaled USD 459.73 billion, while the trade surplus totaled USD 25.21 billion -- new records for both categories. Exports for this period totaled USD 242.47 billion, while imports totaled USD 217.26 billion.

The BOFT is holding a positive outlook on foreign trade as well. At a press conference earlier this month, bureau officials noted that Taiwan's trade volume has been on an upward trend in the past few years: trade volume passed the USD 300 billion mark in 2004, and the USD 400 billion mark in 2006. The BOFT projects that the trade volume will reach USD 460 billion in 2007 and USD 500 billion in 2008.

Taiwan was ranked the world's 16th largest trading country in 2006, according to BOFT Director-General Huang Chih-peng. In 2007, Taiwan has the opportunity to move up to 15th, he said.

The average trade volume per person in 2006 was USD 18,000, surpassing Korea, the US, Japan, and China to rank 8th in the world, according to Huang. In 2007, average trade volume per person was USD 20,000, which could push Taiwan up a notch in global rankings, he said.

While domestic demand remains lukewarm, exports have become the primary force behind Taiwan's economic growth, with foreign trade accounting for over 50% of Taiwan's economic growth in 2007. Foreign trade is expected to continue to remain the pillar of Taiwan's economic development in 2008.

The BOFT is optimistic about export growth from Taiwan, despite a forecast of slower growth for the global economy in 2008.

Huang said that growth target for exports for 2008 has been set at 8%. However, the BOFT is working hard to develop exports even further, and has not discounted the possibility of meeting a 10% growth target, he said.

(Central News Agency)

Taiwan's trade surplus for 2007 reached a record high of USD 27.4 billion, while China was the top export destination of the year, according to the Ministry of Finance (MOF) statistics department.

In 2007, exports totaled USD 246.7 billion and imports totaled USD 219.3 billion, according to MOF figures.

Taiwan's trade performance in Dec. 2007 had a strong showing with record-breaking numbers for both exports (USD 23.48 billion) and imports (USD 21.26 billion), according to Lee Li-shue, head of the MOF statistics department. The trade surplus in Dec. was USD 2.22 billion, the 22nd month in a row for a surplus, said Lee.

Hong Kong and China accounted for 40.7% of all exports, making it Taiwan's top export destination. ASEAN surpassed the US for the first time as Taiwan's second biggest export destination, accounting for 14.5% of all exports. Exports to Hong Kong and China last year totaled USD 100.4 billion, showing year-on-year growth of 12.6%. ASEAN exports were valued at USD 35.78 billion, showing growth of 16.7%. Exports to the US totaled USD 32.07 billion, growing 0.9%.

The ratio of exports to Asia from Taiwan rose from 65.5% to 66.6%, reflecting the increase in exports to Hong Kong and China. Taiwan's trade surplus with Hong Kong and China also rose to NTD 70.6 billion, increasing by NTD 8.07 billion.

In terms of commodities, year-on-year growth was seen across the board for agricultural products, added-value agricultural products, and heavy and non-heavy chemical industry products. Electronic machinery and electronics products, steel and its derivative products, optoelectronics equipment and machinery saw growth of 11.3%.

Year-on-year growth for imports was seen in capital equipment, agricultural raw materials and consumer products. However, as imports of electronic components decreased, the overall growth in imports was only 9.9%.

(United Daily News)

The Ministry of Economic Affairs (MOEA) is projecting an economic growth rate in Taiwan of 5.46% in 2007, according to an announcement made at the end of Dec. 2007. This exceeds the MOEA's original growth projection of 4.6% for 2007, and also tops 2006's growth of 4.89%.

New private investment amounted to NTD 977.16 billion for the Jan. to Nov. period of 2007, reaching 97.08% of the year's goal of NTD 1.65 trillion, according to Minister of Economic Affairs Steve Chen. Electronics and IT sector were the main recipients of private investment, which totaled NTD 598.212 billion during the Jan to Nov, period. The MOEA has projected a total private investment amount of NTD 1.18781 trillion for all of 2007.

In 2007, Taiwan also saw a strong performance in terms of attracting foreign investors and Taishang -- Taiwanese investors overseas -- to Taiwan. Foreign investment totaled a record high USD 14.14 billion from Jan. to Nov. of 2007, representing growth of 18.8% over the same period last year.

The MOEA's private investment goal for 2008 has been set at NTD 1.8 trillion, with the main recipients the electronics and IT sector (goal set at NTD 550 billion), as well as the metals and electronic machinery sector (goal set at NTD 296.9 billion). The MOEA will continue to work to build an excellent investment environment so as to attract more private investment, said Chen.

(Central News Agency)

A new factory being built by Asahi Glass may address the current shortage of solar grade polysilicon materials, said an Economic Daily News report.

Asahi Glass' energy division plans to build a new factory at the Central Taiwan Science Park's satellite base in Yunlin County, located in Southern Taiwan. Construction will start after the lunar new year, and the factory is expected to enter the production phase by year's end.

Current global demand for solar-grade polysilicon has already reached 140,000 tons, which accounts for the shortage, said Lin Rong-chun, chairman of Asahi Energy.

Asahi Glass says it has set its production target at 10,000 tons a year, and expects to reach this target in three to five years. If this target can be achieved, there will be nothing to fear as far as competition from China, the company told Yunlin County officials. With prices estimated at NTD 100 per kilogram, output at the Asahi Glass' new factory could surpass NTD 10 billion.

At a recent meeting with Yunlin County Magistrate Su Jhih-fen, Lin said that if CTSP is able to provide more land, Asahi Glass will continue to expand its investment.

According to estimates by the Ministry of Economic Affairs (MOEA), the domestic solar photovoltaic (PV) output will see notable growth, with output expected to surpass NTD 430 billion by the year 2015. Last year 24 new companies entered Taiwan's solar PV industry, investing a total of NTD 40 billion. The MOEA projects that Taiwan's solar PV industry output will reach NTD 150 billion by 2010, accounting for 6% of the global market.

With the severe shortage of upstream poly-silicon materials, many companies both in Taiwan and abroad are showing interest in Taiwan's solar PV industry. At least five other companies are preparing to invest in polysilicon production, says the MOEA.

Asahi Energy, whose main investor is Silicon Research Inc (SRI) of California, is devoted to researching lower production costs for solar cell-grade polysilicon and sodium fluoride. With its own manufacturing processes and dedicated equipment for R&D and innovation project, the company offers production costs that amount to less than half that of major international companies. The company's new plant is expected to alleviate this materials shortage.

(Economic Daily News)

Taiwan's yacht building industry received a boost in 2007 and climbed to fifth place worldwide, according to US yachting magazine ShowBoats International.

Taiwan builders received orders for 71 'superyachts', which measure 80 feet or above. The total number of feet on order with Taiwanese builders in 2007 was 6,867 feet, representing record growth of 60%, according to ShowBoats International.

The Ministry of Economic Affairs Industrial Development Bureau (IDB) says that it projects a total of NTD 3 billion has been invested in new factories or expansion over the past three years, thanks to a continuous stream of international orders. Production capacity is expected to continue to grow, which will bring increased overall industry output in 2008 and 2009, said the bureau.

The market has flourished over the past three years, says the IDB. According to the bureau, from 2006 to 2008, yacht orders increased in terms of total length of boats from 81,814 to 113,520 feet. These figures showed growth of 7.9%, 15.3%, and 20.2%, respectively. The total number of boats increased from 688 to 916, showing growth of 6%, 12.9%, and 17.9% over the past three years.

According to the IDB, Taiwan companies to date have received orders totaling 6,687 feet in length, comprising 6% of the global market. With respect to global rankings, Taiwan placed behind Italy, the US, the Netherlands, and Germany, who account 43.6%, 11.7%, 9.2%, and 8% of the global market, respectively. And, with support from its government, China has already achieved a 1.9% global share in the yacht building industry, ranking 9th in the world.

Taiwan's superyacht building industry has already been quite successful, said the IDB. Only one Taiwanese company ranked among the world's top twenty builders in 2007, but this number increased to three companies in ShowBoat's 2008 rankings: Horizon (12th), OceanAlexander (16th) and KhaShing (17th).

(Central News Agency)

As a full industry chain is emerging, Taiwan flat panel manufacturers are enjoying deepening ties with Sony through the company's new logistics center, says an Economic Daily News report.

Sony's built its third global logistics center last year in the central Taiwanese city of Taichung, the location of many of Taiwan's flat panel makers, OEMs, and component manufacturers. Taichung serves as an export center for local flat panel producer AU Optronics (AUO).

The Taichung logistics center joins South Korea and Shanghai as Sony's global logistics bases. The three centers serve mainly to accommodate as a source for stable, high-quality TV panels, which are shipped for final assembly and sales at Sony's production bases in Japan, China, the US, and Europe.

Sony saw the need for its Taichung logistics center due to increasing demand in the flat panel TV market last year, and as the company's joint venture with Samsung was not able to meet demand.

LCD TV demand continues to rise worldwide, with the industry expected to ship a record 100 million units. Against this backdrop, Taiwan's rapidly growing flat panel industry has positioned itself as an important source. The Taiwan industry's quality output and technology have reached a high level – a development highly welcomed by Sony, noted the EDN report.

Through its Taiwan logistics center, Sony will be able to strengthen its cooperative relationship with its Taiwan partners while raising its competitive ability in the global LCD TV market to create a mutual win-win situation for all, said Takashi Fukuda, President of Sony's TV Business Group.

So far, Taiwan's logistics center has played a key role in the production of Sony's Bravia LCD TV, with 30% of its TV panels purchased from Taiwanese makers. For the 2007 fiscal year (Apr. 2007 until Mar. 2008), Sony's marketing sales volume goal for its Bravia LCD TV is 10 million units.

A relative newcomer to the industry, Wistron -- which serves as the OEM for Sony's Bravia 'U series' -- continues to receive orders from Sony, and expects its LCD TV deliveries from last year to number over 1 million units, said EDN.

This year Sony's procurement in Taiwan reached 5.5 million flat panels, a record high, with Taiwanese manufacturers AUO and Chi Mei Optoelectronics receiving a bulk of the orders.

(Economic Daily News)

A seminar on introducing customs, taxation, and Asian logistics operating models at the Taoyuan Free Trade Zone (FTZ) is being held on Sunday, January 24, 2008. The seminar takes place at the Far Glory Free Trade Zone Investment Promotion Center, located at the Taiwan Taoyuan International Airport.

The seminar is being hosted by the Taipei Customs Office under the Ministry of Finance and the Far Glory Free Trade Zone Co. Ltd, which operates and manages the Taoyuan Free Trade Zone.

The event is free of charge, and all parties interested in participating should register by January 18, 2007. Please see below for details on the seminar, exact times and registration information.

The seminar features a number of speeches by FTZ and government officials. Speakers include:

- Yeh Chun-yao, Chairman of the Far Glory Free Trade Zone Co. Ltd, who will make introductory remarks
- Lin Cheng-hsiung, head of the Taipei Customs Office, who will speak about customs operations at the FTZs
- Lin Yi-hsien, Certified Public Accountant at PricewaterhouseCoopers Taiwan, who will speak on taxation at the FTZs
- Representatives from the Center for Economic Regulation and Innovation under the Council for Economic Planning and Development; the Civil Aeronautics Administration under the Ministry of Transportation and Communications; and the Department of Investment Services under the Ministry of Economic Affairs

Background on Taiwan's Free Trade Zones and the Taoyuan FTZ:

As part of the Taiwan government's policy to develop Free Trade Zones, significant efforts have been undertaken since 2005 to simplify and ease the customs process. These efforts have enabled better efficiency for business operations and value-chain industries.

From January to October 2007, Taiwan's five FTZs posted two-way trade volume of NTD 43.76 billion – a three-fold increase over the preceding year. The Taoyuan Free Trade Zone alone created over half of this total value in trade.

The Taoyuan FTZ is unique as it accommodates a fully-integrated sea and air logistics operation, as well as a post-processing and storage warehouse zone. At the Taoyuan FTZ, investors stand to benefit from Asian supply chains logistics operations through special customs-free zones within Taiwan's territories. The Taoyuan FTZ can be utilized as the central point through which investors can connect with other export processing zones and science parks throughout Taiwan to add value to their goods. To date, a sizable number of major companies, both international and local, have established operations at the Taoyuan FTZ. These investors cover a wide range of industries, including semiconductor equipment and facilities, IC processing, memory, TFT-LCD, optical materials, medical treatment devices, communications equipment and facilities, mobile devices, and digital consumer electronics.



Date and Time: Thursday, January 24, 2008, from 1:30pm to 5:20 pm

Location: Farglory Free Trade Zone Investment Promotion Center (No. 1 Hanghsiang Road, Dayuan Township, Taoyuan County, at Taiwan Taoyuan International Airport, by Provincial Highway No. 4)

Target invitees: Corporate representatives, general managers, strategic executives, department heads for finance/taxation/shipping/logistics management

Organizer: Farglory Free Trade Zone Co., Ltd.

Fees: Free of charge, participants must register.

Interested parties should register by Friday, Jan. 18, 2008. Please contact:
Michelle Chang (03)383-3456
Reina Wang (03)383-3456


(Far Glory Free Trade Zone, Department of Investment Services)