The Executive Yuan on Thursday approved draft amendments to the Statute for Industrial Innovation to extend a wide range of tax incentives by 10 additional years, a move that Premier Su Tseng-chang said will give businesses greater peace of mind to invest long-term and create jobs in Taiwan. The proposed amendments will be sent to the Legislature for review.
The statute provides essential support for companies that have long-term plans for investing in innovative research and development, collaborating with universities and research organizations, recruiting and retaining talent, or developing innovative businesses in Taiwan, the premier said. In response to companies' expectations, the proposed revisions would also allow the tax deduction of undistributed surplus earnings invested in hard assets, which will encourage firms to use their earnings to fund tangible investments.
The Ministry of Economic Affairs said in a briefing that the statute has been in effect for over eight years since its promulgation on May 12, 2010. The latest round of amendments aims to extend the statute's tax benefit period by 10 years and provide additional incentives, which will help stimulate investment and promote innovative growth in Taiwan.