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Taiwan To Offer Shipping Tax Breaks

Tuesday, March 2, 2010

The government is looking to introduce measures in 2010 in an attempt to increase the competitiveness of Taiwan’s ports and, thereby, expand its shipping industry, not only with regard to cross-strait trade with China, but also globally.

In particular, following a reported fall of almost 10% to 605m tons in goods handled in Taiwan last year, partly due to the economic recession, the government now intends to persevere in developing the country’s free ports.

Although 63 companies are already to be found in those ports, further businesses will be encouraged to establish operations there. In particular, foreign companies will be given an exemption from Taiwan’s business income tax when keeping and/or reprocessing their merchandise in any of the free ports, before subsequent re-shipping abroad.

It is also reported that the exemption will be given if a foreign company imports into Taiwan less than 10% of its total sales.

Infrastructure at all of Taiwan’s ports will also be improved. This will include the setting up of a single ports authority to oversee their operations, and the introduction of a 24-hour computerized programme for shipping services. In addition, Taiwanese shipping companies will be encouraged to re-register their vessels back to Taiwan.