Taiwan's Legislature has passed legal amendments today, that would offer tax
breaks to "innovative" companies, whose research and development expenditure
and intensity reach a predetermined level.

The amendments to the Statute for Industrial Innovation stipulate that
companies innovating technologies domestically, that are critical to
international supply chains, will be granted tax deductions of 25 percent of
expenditure on R&D, and 5 percent of their spending on new equipment.

While the provisions do not limit the types of industries that can receive
the tax breaks, they are widely seen as incentives for semiconductor, 5G, and
electric vehicle companies to step up their R&D efforts.

Economics Minister Wang Mei-Hua says the amendments will hopefully keep the
roots of key industries in Taiwan, drive economic growth, and spur the
expansion of companies in the same industry chains as those benefiting from
the tax breaks, thereby ensuring national security through economic
stability.

(TT)