Enterprises to be Granted 30% Tax Deduction for Investment in Innovation

Taipei, July 8, 2010 (CENS)--Taiwanese enterprises will be allowed to have 30% of their expense on research and development and specialist training that will home their innovation capability, deducted from their taxable business income, according to government sources.

The Ministry of Economic Affairs (MOEA) will work out details of the draft incentive package in August, helping the island's enterprises to get on with transformation in the post-ECFA (Economic Cooperation Framework Agreement) era.

Also, the government will offer companies improving innovation capability employment subsidy that covers a maximum 30% of the workforce included in the labor insurance policy, with each employee to be subsidized with NT$10,000 (US$312.5) a month. Maximum subsidization period is six months with the exception of workers aged over 45, who are eligible to receive one year of subsidy.

The government drafts up the investment tax credit and employment subsidization after referring to enterprise innovation strategy set by Organization For Economic Cooperation and Development (OECD). OECD's innovation strategy, according to MOEA officials, includes innovation of product, service, technology, production process and marketing.