Capitalizing on the shifts and uncertainties driven by the trade conflict between the U.S. and China, the Executive Yuan has launched a new three-year action plan, running from 2019 to 2021, to encourage and assist Taiwanese enterprises based overseas to return and invest at home. Guided by the needs of businesses, the action plan calls for integrated policy measures focused on helping with such resources and services as land, water, electricity, labor, taxation and financing to actively assist overseas Taiwanese companies redirect investment to Taiwan and spur the development of domestic industry. The government has also established InvesTaiwan to provide customized single-window service, with a dedicated contact personally responsible for providing assistance in each assigned case. As a comprehensive supply chain encompassing downstream, midstream and upstream industries takes shape, local businesses will be better able to pursue future development and drive economic growth.
Five measures to bring outstanding businesses home
◆ Meeting requirements for land: Measures include offering preferential leasing terms, increasing the efficiency of land use via an urban industrial park vertical expansion program, counseling legitimate businesses on the expansion of production facilities, and opening more areas to industrial use.
◆ Ensuring a ready supply of workers: In order to encourage job seekers and meet business demand for labor, the government will employ various subsidies and awards to create employment incentives, help businesses hire employees, and aid workers seeking employment in new disciplines. Assistance is also being offered under existing mechanisms to allow companies to internally reassign or hire necessary specialized workers from China.
◆ Speeding the acquisition of capital: The National Development Fund (NDF) is delegating banks to make available NT$20 billion (US$647.1 million) of their own capital for entities seeking rapid financing. As a service fee for providing the capital and administering the loans, the NDF will pay the banks 1.5 percent annual interest on the actual outstanding loan balances. Loan amounts and the interest rates charged will be decided by the banks themselves depending on how the funds will be used and the creditworthiness of the borrowers..
◆ Providing reliable water and power supplies: Single-window service and dedicated personnel are available to help expedite water usage plan applications and speed access to the power grid.
◆ Furnishing dedicated tax services: Service counters are being set up in every regional national tax bureau to provide consultations on tax laws and regulations and answer questions concerning taxation.
◆ Amending employment qualifications and review standards for foreign workers: This measure will help returning enterprises deal with labor shortages while at the same time creating high-quality job opportunities for workers in Taiwan.
◆ Promoting legislation addressing the repatriation, use and taxation of offshore funds: The draft bill provides appropriate tax incentives to encourage Taiwanese businesses to repatriate overseas assets for tangible investment in Taiwan, all in compliance with international accords against money laundering and terrorism financing.