R&D and IPO service providers to be included in emerging and important industries

The Executive Yuan finalized the amendment to the “Regulations Concerning Reward for Emerging, Important and Strategic Industries in the fields of manufacture or technical service” near the closing of year 2001.  Newly added to the said Regulations are 21 items under “facilities or systems using IC cards”, and 6 items under “digital monitoring systems” are partially amended.  Applicable products have increased from 134 items to 155 items in total.  Additionally, R&D service and IPO service providers are also added into the 10 items under “technical services” now existing.  The new amendment will soon be promulgated and implemented. 

If a maker of advanced IC designs chooses a five-year tax exemption, the scope of such exemption will cover income derived from its sale, by itself, of products made according to the designs in its investment plan already sanctioned by competent authority, so as to meet the maker’s needs, the MOEA pointed out.  The MOEA also expressed that companies having investment plans to manufacture emerging and important products or to provide technical services are entitled to reward, which can be tax credit rate for an individual investor or a five-year tax exemption.  The former has been reduced to 9 percent after this January 1, lower than last year by one percent.

Source: Commercial Times 01/03/2002