Establishment of free port passed preliminary examination: Chinese mainland business persons to enjoy same entrance treatment as those of foreign nationalities, tax exemption for foreign enterprises
E020830Y8 Sep. 2002（E37）
The Executive Yuan on August 29 finished the preliminary examination of the draft Statute Governing the Establishment of Free Port which adopted a compromised measure over two major issues: landing visa for Chinese mainland businessmen and income tax exemption for foreign enterprises. The Mainland Affairs Committee and the Department of National Treasury agreed to cooperate, beginning with amending relevant details in the Statute Governing Relations between the People of Taiwan Area and the Mainland Area and in the Statute for Upgrading Industries.
The draft submitted by the Council for Economic Planning & Development was hoped to turn the free ports into the global logistics management headquarters of multinational enterprises. Therefore, in addition to much relaxed free port regulations on logistics and capital flows, the draft also proposed to grant landing visa to Chinese mainland business persons - same treatment as business persons of other foreign nationalities visiting Taiwan. Additionally, the draft also provided income tax exemption on foreign enterprise's goods assembled in the free ports and sold domestically. However, the Department of National Treasury holds the opinion that if foreign enterprises in the free ports enjoy such tax exemption, it will be unfair to local companies.
Source: Economic Daily News 08/30/2002
Commercial Times 08/30/2002
