Taiwan's Ministry of Finance issued a release on 26 July 2022 confirming the extension of the tax credit (deduction) incentive for investment in smart machines and 5G systems until 31 December 2024. It is also confirmed that the scope of the incentive is further expanded to cover investment in cyber security products or services in the period 1 January 2022 to 31 December 2024. The regulations for the changes were issued on 4 July 2022.
The release also covers the terms for the incentive including that taxpayers must choose to take either:
- a credit of up to 5% of the investment expenditure, which is creditable against enterprise income tax payable in the current year; or
- a credit of up to 3% of the investment expenditure, which is creditable against enterprise income tax payable in each of the three years following the current year.
It is also noted that investment deduction may not exceed 30% of the enterprise income tax payable in the current year.