Taiwanese Cabinet Approves Corporate Tax Cut

by Mary Swire, Tax-News.com, Hong Kong

22 February 2008

It emerged this week that the Taiwanese cabinet has approved plans to reduce corporate and personal income tax rates, although the proposed changes must still secure parliamentary approval.

The cuts would see the business tax rate reduced to 17.5% (from 25%), and the personal income tax rate slashed, according to reports.

No timetable has yet been announced for the introduction of the new lower rates, but according to the International Herald Tribune, ministries likely to be affected by the changes have been asked to revise legislation to accommodate the new rates as soon as possible.

In addition to these measures, the Taiwanese authorities recently announced the planned launch of a programme providing low-interest loans to SMEs and businesses in fledgling industry sectors, in order to boost economic growth.

The loan amounts, reportedly up to NT$100 million, at less than 4.51% interest, are expected by the government to help in the region of 27,000 businesses list for the first time.