Executive Yuan to pass bill to bring more foreign professionals to Taiwan
According to a report by the United Daily Evening News, the Executive Yuan plans to pass a set of measures aimed at attracting more foreign national professionals to Taiwan. The new measures, entitled the "Friendly Measures to Attract Foreign Nationals Professionals to Taiwan for Work", are designed to accommodate foreign professionals in Taiwan, including tax breaks and relaxed employment visa regulations.
The new measures would apply to approximately 1,000 high-level management foreign employees already in Taiwan, according to Ye Ming-fong, Vice Chairperson of the Executive Yuan's Council for Economic Planning and Development. The measures will also apply to Taiwan companies or Taiwan foreign business organizations that bring foreign nationals to Taiwan for employment, including employees from China.
Premier Chang Chun-hsiung commented that over the next three years, Taiwan will need 34,000 skilled workers in a number of major high-tech sectors, including semiconductors, image displays, IT, digital content, biotechnology, and IT services. Chang indicated that the new measures are indeed necessary and take a two-pronged approach by offering both tax and non-tax oriented incentives.
According to Ye, under the new measures, income tax deduction rates will be simplified those foreign residents in the ROC under 183 days in a year, while income tax rates for foreign residents who live in Taiwan for 183 days or more will also undergo adjustments. In addition, foreign nationals will be able to list the following items as business expenses when reporting their taxes: travel expenses to Taiwan for both the individual and dependents, travel expenses for return to home country, costs of moving, water and electricity costs, and land rent. These items will not be considered as income.
Taiwan also plans to seek bilateral tax agreements with other countries, to avoid double taxation and prevent tax evasion, said Ye.
According to Ye, non-tax oriented measures in the new bill include:
(1) The original two-month limit on extensions for employment permits has been extended to four months;
(2) Mainland Chinese nationals coming to Taiwan as part of foreign national quotas no longer need a Taiwanese guarantor to enter Taiwan;
(3) Assistance in helping foreign national children enroll in school, and restrictions on foreign nationals obtaining credit cards have been relaxed.
(4) The Ministry of Finance National Property Bureau will assist the Taipei American School in obtaining fractional lots for an expansion of their premises, and offer lower rents to the Taipei European School.
(5) Spouses of foreign nationals will be granted multiple exit-entry permits, and revised regulations will allow parents of mainland Chinese employees and their spouses to visit Taiwan.
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