Statute for Industrial Innovation Amended

An amendment to the Statute for Industrial Innovation, which aims to further industrial innovation and competitiveness, was approved by Taiwan's Legislative Yuan on 3 November 2017. The draft contains the following points:

1. Those who own vacant lands in industrial districts are required to improve their use of the land within two years after a public announcement made by the authorities. If owners fail to comply, they may be fined, and the authority may auction the lands.

2. Limited partnerships that meet the conditions below will not be responsible for profit-seeking enterprise income tax (imposed income tax will be imposed on the partners instead):
a) the total value of the contribution exceeds three hundred million Taiwan Dollars;
b) the capital employed in Taiwan exceeds 50% of the total value of the contribution;
c) the investment value in startups exceeds 30% of total value of the contribution or three hundred million New Taiwan Dollars.

3. Investors who meet the conditions below may deduct 50% of the investment value from their income (the upper limit is three million New Taiwan Dollars) to reduce the amount of income tax:
a) Investing in a startup certified by the relevant authority;
b) the investment value exceeding one million New Taiwan Dollars;
c) shares issued by the startup having been held for more than 2 years.

4. A tax at the time of transfer of shares issued due to capital contributions in the form of technical know-how, employees’ compensation, and other specified conditions, will be imposed.
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