Plans to Make More Lands Available in Industrial Zones

Due to a lack of available land in industrial zones developed by the Taiwan Government, the President of the Executive Yuan promised on 19 October 2017 to amend the Statute for Industrial Innovation.

Pursuant to Articles 35 and 38 of the Act for Upgrading Industries promulgated on 29 December 1990, where an industrial entrepreneur who has leased or purchased any parcel of land in an industrial zone fails to make use of such land within a limited period of time, the relevant authority may exercise a right of compulsory buyback of such land at the original selling price without the need to obtain the consent of the industrial entrepreneur. 

The legislation is intended to ensure that land in industrial zones will be developed in a timely manner, and Constitutional Interpretation No. 515 has declared such legislation to be in accordance with Article 15 of the Constitution of the Republic of China (Taiwan) provides the protection of human's property rights. However, the aforesaid articles were deleted in 2002.

In recent years, the need to obtain more available lands and buildings within industrial zones has been overwhelming that the Executive and Legislative Yuans have made an agreed to amend Statute for Industrial Innovation in order to re-allocate lands and buildings within certain industrial zones. 

If an industrial entrepreneur has failed to make use of such land, the relevant authority is entitled to require the landowner/lessee to complete the pre-approved plans (the authority may grant the landowner/lessee a permit to build a factory or make use of such lands for other purposes) within two years.  If the landowner/lessee fails to comply with such orders, he shall be sanctioned with a fine of no more than 10% of the government-declared value of the land.  Following the fine, if the landowner/lessee still refuses to make use of the land, the authority may exercise a compulsive buyback of such land. 

The Executive and Legislative Yuans expect to propose draft amendments to the Statute for Industrial Innovation in the near future. 

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