Science Parks

Science Park Investment

Tax Incentives

• No taxes are levied on park enterprises with respect to imported machinery for self use, raw materials, fuel, materiel and semi-finished goods. No paperwork required for no-tax treatment, guarantees, bookkeeping or tax withholding.
• Park enterprises that export products or labor services are subject to zero enterprise tax.
• Park enterprises may act in accordance with the Regulations for Incentives on New Important Strategic Enterprises Belonging to the Manufacturing and Technological Service Sectors, which form part of the Statute for Upgrading Industries, and apply for a five-year tax exemption or a reduction in personal investment tax.

Protection of Investor Rights

• Foreign investors enjoy the same privileges and rights as domestic investors.
• Foreign investors can hold 100% equity in park enterprises, and can seek the government of the Republic of China and local enterprises as joint investors.
• Profits, capital gains and interest from investments by foreigners or overseas Chinese are eligible for transfer overseas upon application.
• Where the equity stake of foreign investors, overseas Chinese investors or a combination thereof shall exceed 45% in a particular enterprise, the government provides its assurance that, within 20 years beginning on the day of operation, the government will not purchase such equity stake.
• One year after the completion of an investment project, the foreign investor may apply for a one-time overseas transfer of the investment amount.
• Intellectual property rights and ownership rights are protected under law.
• Upon approval by the Park Administration, a science industry enterprise may engage in import and export businesses related to its business.
• Upon approval by the Park Administration, a science industry enterprise may invest in a domestic or foreign company. Procedures should be in accordance with Article 13 of the Company Law.
• Upon approval by the Park Administration, a science industry enterprise may establish branch offices and plants.

Government Participation in Investment

• Investors can apply for government participation in investments, with the maximum investment amount capped at 49% of principal.

  Agencies representing the government include Science and Technology Development Fund and other development funds.

• The Development Fund, Executive Yuan

  Contact information: 3F, 2 Aikuo West Road, Taipei; telephone: 886-2-2394-4305 or 886-2-2322-8348, contact Business Unit or Unit Chief.

• Equity for Patents or Specialized Technology

  Patents or specialized technology can be applied towards equity investment.

Low Interest Loans

• Scientific industry enterprises may apply for low interest loans from the Chiao Tung Bank for the purposes of acquiring machinery and equipment or building plant facilities. The interest rates will approximately be 2% less than the basic lending rate in ordinary banks.
• The loan amount shall not exceed 80% of the purchase price for the machinery and equipment, nor shall it exceed 65% of the total investment amount. The longest period of repayment is ten years (including the first three years in which repayment of principal is exempted).

Incentives for Research and Development

• The Science Park Administration may provide awards for research and development of creative new technologies. Each approved R&D project may receive a maximum NT$
• Within certain prescribed limits, research and development expenses can be deducted from income tax.
• Machinery and equipment used in research and development are exempted from import tax.
• Donations of equipment for research and development may count toward expenses.

In accordance with the Park Administration's Criteria for R&D Assistance for Key Components and Products, the Park Administration may provide funding support for critical high-tech products. For each approved project for the research and development of critical components and products, the highest funding support (including support funds and matching funds) possible is 50% of development expenses, without any cap on amounts.

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