Reported over 1 year ago
The Ministry of Finance in Taiwan stated on June 18, 2024, that to qualify for the 'Taiwan's Indigenous Chip Law,' companies must meet both quality and quantity standards. The quantity criteria include research and development (R&D) expenses of 6 billion NTD, an R&D density of 6%, and maintaining a certain effective tax rate (12% in 2023). Companies that enjoy multiple tax incentives in Taiwan are required to pay a reasonable amount of tax to contribute to the government's finances. Despite the significant tax reduction scope of the law, only four out of the speculated seven to eight eligible companies applied, and some industry leaders were unexpectedly absent from the list, possibly due to a lack of understanding of the criteria, which demand a balance of quality and quantity standards in R&D investment and tax payments.
Source: YAHOO