An International Enterprise Can Enjoy 5-Year Tax Exemption

If Setting Its Headquarters in Taiwan

The Ministry of Economic Affairs (MOEA) plans to include the “headquarters of global operation” as one of the “emerging, important and strategic industries” provided by the Statute of Upgrading Industries. In addition to 5-year exemption for the profit-seeking enterprise income tax, the MOEA will provide assistant in acquiring public lands and necessary personnel for R&D and marketing management.

The MOEA indicated that the headquarters of global operation would include the R&D, design, marketing and channeling departments, not including manufacturing facilities that have lower added value. The MOEA will also prepare a standard to determine the “headquarters of global operation or logistic,” based on the conditions of overseas locations, numbers of domestic and overseas employees, proportion of domestic and overseas sales, amount of capital, and profits before tax.

As local enterprises gradually move to China and Southeast Asian countries, this proposed plan will be applicable to both domestic and foreign companies, in order to encourage them setting headquarters in Taiwan.