The Cabinet has approved an amendment to the Act for Development of Small and Medium Enterprises that will give corporate tax deductions to such businesses that raise salaries for lower-level employees.

According to Economics Minister – Chang Jia-zhu – the amendment offers companies a tax credit, and is expected to lead more than 430 000 small- and medium-sized companies, or about one-third of all businesses nationwide, to increase salaries.

Under the proposal, if the overall economic monitoring indicator reaches a certain level, small- and medium-sized firms that increase payroll expenses, not because of an adjustment in the statutory minimum wage, will be granted corporate tax deductions for the additional pay.

The proposal states the rules only apply to small- and medium-sized companies’ domestic lower-level employees, excluding employees at the levels of supervisors and managers or higher.

To encourage small- and medium-sized enterprises to give their employees pay raises, the government says it will also take into account enterprises raising pay when evaluating applications for government subsidies for business operations.

 

More in Related News

Over 60% of Taiwan Businesses Plan to Raise Pay in 2014: Poll Want China Times Dec. 25, 2013

Around the World, Pay Raises in 2014 are Projected to Shrink CGMA Magazine Jan. 15, 2014

 

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