Taiwan Withdraws Proposed HQ Tax Breaks
Friday, February 26, 2010
Taiwan’s Premier, Wu Den-yih, has said that the government has removed
the reduction in tax that had been intended only for multinational companies
establishing operational headquarters in Taiwan, and had previously been included
in the Industrial Innovation bill to be considered in the legislature.
Within the bill, the government had decided to offer a 15% corporate income
tax rate, instead of the usual 20%, to businesses in the top 500 global companies
if they agreed to establish an operational headquarters in Taiwan.
The preferential measure had aroused some controversy, as it was said that
it would benefit only four Taiwanese companies. In turn, however, certain of
those companies have threatened to move their headquarters out of the country,
if the incentive was withdrawn.
The government has now said that, after consultation, it will produce a revised
bill. Wu Den-yih has confirmed that all businesses, of whatever size, would
be eligible for the benefits in the bill, which will contain incentives for
industrial innovation and research and development.