Rules concerning crediting the funds invested in research and
development in Taiwan against income tax will be extended for
another 10 years.
Taiwan has a dynamic economy that is largely driven by
manufacturing, especially the export of petrochemicals and
electronics. The Taiwanese government is keen to continue the
island's successful growth story by promoting more economic
diversification. It is therefore encouraging companies to invest in
innovative areas, such as 5G telecommunications and smart
machinery, by incentivising research and development (R&D)
activity.
A recent study showed that Taiwan lags behind
the world's top 1,000 companies in R&D expenditure as
global firms put more emphasis on R&D in order to stay
competitive and profitable.
