Semiconductor sector welcomes tax break proposal

18 November, 2022

Courtesy of ICRT


Local semiconductor companies are responding positively to a proposed increase in tax deductions for corporate spending on research, development, and equipment investment.


The proposed amendment to the Statute for Industrial Innovation seeks to introduce a 25% income tax deduction, an increase from the current 15%, for eligible companies whose research and development expenditures reach a predetermined level.


There will also be an additional 5% deduction when those companies purchase advanced equipment, with the maximum combined tax deduction set at 50% of the company's total income tax.


Premier Su Tseng-chang is touting the proposed tax deductions as being the largest ever in Taiwan - saying it is conducive to retaining advanced technology sectors in Taiwan, which in turn will improve the island's economic and overall security.



Taiwan Semiconductor Manufacturing says it welcomes the increase in tax deductions aimed at incentivizing companies to conduct more R&D.


MediaTek says it hopes follow-up regulations would be drafted in a way that addresses the different requirements in the design and manufacturing of semiconductors while ASE says the timely proposal will sustain the R&D momentum of Taiwan's semiconductor industry in an increasingly competitive international arena.

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