Newsletter
INVESTMENT THRESHOLDS FOR STRATEGIC INDUSTRY INCEN-TIVES
Further to our previous reports, the Regulations Governing Incentives for Emerging Strategic Industries as Applicable to Manufacturing and Technical Service Industries were announced on 20 February 2001, effective retroactively from 1 January 2001. Article 2 of the regulations de-fines the investment thresholds for claiming tax incentives available to emerging strategic indus-tries. These thresholds are outlined below:
1.Paid-in capital and the amount for pro-curement of equipment:
a.Paid-in capital, or increase in paid-in capital, of least NT$200 million (which may be injected in separate installments within the approved period of the in-vestment project); and expenditure of at least NT$100 million on the purchase of new equipment (which may be pur-chased in stages within the approved period of the investment project).
b.For investments in the "green technol-ogy" categories of environmentally friendly technical materials and recy-cled-resource products, minimum paid-in capital or increase in paid-in capital of NT$50 million, and mini-mum expenditure of NT$ 15 million on all-new equipment.
2.Research and Development spending:
R&D expenditure of at least NT$20 mil-lion during the designated three-year pe-riod (the three-years period includes the year in which the project is completed plus the preceding and subsequent years); or equal to at least 10% of the paid-in capital or increase in paid-in capital under the investment project.
1.Paid-in capital and the amount for pro-curement of new equipment:
Paid-in capital, or increase in paid-in capital, of least NT$ 50 million, and ex-penditure on the purchase of new ma-chinery and equipment as follows:
a.At least NT$15 million: Applies to en-terprises providing Internet services, advanced IC design services, engi-neering services for turnkey electric power systems, or product engineering services.
b.At least NT$7 million combined spending on the purchase of hardware and software: Applies to enterprises providing Internet-enabled software or content.
c.At least NT$7 million: Applies to en-terprises providing engineering ser-vices for automation or the introduction of electronic systems, environmental protection engineering services, bio-technology and pharmaceutical pro-duction technology services, engineer-ing and technical services for reduced emission of greenhouse gases by manufacturing industry, or engineering and technical services for energy con-servation or the use of new or clean energy sources.
2.Research and Development spending:
R&D expenditure of at least NT$15 mil-lion within the designated three-year pe-riod (the three-year period includes the project completion year and the preceding and following years); or R&D expenditure equal to at least 15% of the paid-in capital or increase in paid-in capital under the investment project, or 10% in the case of environmental protection engineering services.