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Items
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Laws & Regulations
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Offers
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Income tax free
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Article 36, Act for Promotion of Private Participation in Infrastructure Projects
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From the year when private institutions participate major public construction and start the operation with taxable income, the longest period is five years.
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Deduct business income tax
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Statute for Upgrading Industries
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Factory owners can apply for investment tax credit finishing business income tax that should be paid the current year if the total amount of investment is in the range of 20%. When the current year is not enough for deduction, can be deducted within 4 years.
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Land rents free (use county owned land for development)
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Article 7, Self-governance Article on Encouragement for Promotion Investment of Kinmen County
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If investors use county owned land for development and the investment amount is over 30 million NT dollars, land rents free and charged by 1% of the yearly interest of declared land value from the day of contract. The longest period is 10 years.
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Land value tax, house tax and deed tax should be collected when receiving (use private land for development)
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Article 7, Self-governance Article on Encouragement for Promotion Investment of Kinmen County
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If investors use private land for development, the land value tax and house tax that subsidize investors establishing land, the amount is full for the first two years when starting collecting taxes, the 3rd to the 10th year is 50%. At the same time deed tax can be deducted according to self-governance article of Kinmen County Promoting Private Enterprises Participation Major Public Construction for Deduction of Land Value Tax, House Tax and Deed Tax.
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Interest rate subsidy
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Article 6, Self-governance Article on Encouragement for Promotion Investment of Kinmen County
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Lending rate: 50% of the investment amount in each case and it is the limit of interest rate subsidy, the highest amount is NT 50 million dollars, but the investment amount doesn’t include land purchase cost.
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Interest rate subsidy: 10% of interest should be paid as subsidy the 1st and 2nd year, the 3rd and the 4th is 8%, but it doesn’t include liquidated damages and other non-interest expense.
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Bonuses
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Article 8, Self-governance Article on Encouragement for Promotion Investment of Kinmen County
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NT$100,000 bonus will be given when investment amount is more than NT 50 million dollars, less than NT50 million dollars is not included.
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Residents of the County hired by investors, one more person is added for each case and we will give NT$20,000.
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Value Added Tax free
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Article 10, Isolated Islands Construction Act
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Businessmen in Kinmen area whose goods are sold and delivered for use in local area or labor material provided by local have free business tax. For promoting tourism, shop owners who establish duty free stores in Kinmen should get the approval of local competent authority and apply for registration to customs selling goods to tourists for carrying to off-shore islands. Tax rate of business income tax is 0 for goods sold in duty free shops.
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Tax rate of Business Income Tax
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Taxation Agency, Ministry of Finance R.O.C.
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Tax rate of business income tax in Taiwan is 17% which is lower when comparing with Mainland China (25%) and Korea (22%) and about the same with Singapore (17%) and Hong Kong (16.5%). Effectively create a tax environment of low tax and with international competitiveness can promote the entire economy and industrial development.
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