Taiwanese IT Firms To Benefit From Reduced Tax Rates

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

23 April 2008

It emerged on Tuesday that the incoming KMT government in Taiwan is planning tax rate cuts for certain sectors in order to retain domestic enterprises.

According to reports this week, President-elect Ma Ying-jeou - set to become President in mid-May - revealed that his administration intends to reduce tax rates and simplify the regulatory regime for companies in the high-tech sector.

In addition to retaining domestic companies in this area, Reuters quoted the President-elect as revealing, the new government hopes to attract more foreign investment, and to entice qualified workers from elsewhere, to complement home-grown talent.

"We want to give these firms more space and freedom," he reportedly stated.

It also emerged this week, following the unveiling of the forthcoming Cabinet, that the new KMT administration will scrutinise the financial reforms put in place by the DPP government, and may suggest measures of its own to expand the financial services sector.

The state-controlled Central News Agency quoted Vice Premier-designate Paul Chiu as explaining on Monday that the emphasis of the incoming KMT government was likely to be on expanding the scale of the domestic financial services market, and increasing efficiency among domestic financial institutions.

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