The Cabinet yesterday passed a draft amendment stipulating that investments in certain countries or industries without prior application would be punishable by a fine of up to NT$10 million (US$306,110).
As Article 10-1 of the Statute for Industrial Innovation (產業創新發展條例) is to expire by the end of this year, the draft amendments to the statute were approved by the Cabinet yesterday in line with the goal of a “twin transition” to artificial intelligence (AI) and low carbon emissions, the government said.
In addition to provisions about smart machines, 5G mobile networks and cybersecurity, specific definitions of “AI” and “decarbonization” were established to inform domestic companies about what investments would be allowable, thereby facilitating outbound investments while protecting key technologies.
Photo courtesy of the Executive Yuan
According to the bill, the maximum reimbursable investment expenditure would be raised to NT$1.8 billion from NT$1 billion to support investments in equipment for AI and decarbonization, with the applicable period extended to the end of 2029.
To encourage venture capital limited partnerships to invest in start-ups, the threshold to be reimbursed would be lowered to NT$150 million from NT$300 million, although the investments would have to reach a certain amount or percentage within three years, the bill says.
Angel investors investing in start-ups would also enjoy a preferential threshold of NT$500,000, down from NT$1 million, and would receive funding from the government if the start-up was founded less than five years earlier, it says.
To help start-ups obtain capital, angel investors investing in key industries would enjoy a maximum income tax deduction of NT$5 million, up from NT$3 million, it says.
However, investments over a certain amount, in certain countries or regions, or in certain industries or technologies, would not be permitted without prior application, the bill says.
Such investments without prior application and approval are punishable by a fine of NT$50,000 to NT$1 million. Those who fail to correct, suspend or withdraw these investments after receiving warnings would be punishable by an additional fine of NT$500,000 to NT$10 million, it says.
Asked about “investments reaching a certain amount,” Ministry of Economic Affairs Industrial Development Administration Deputy Director-General Tsou Yu-hsin (鄒宇新) said that another bill would be formulated to increase the investment limit to NT$3 billion from NT$1.5 billion.
The term “key industries and technologies” would cover 22 technologies and five industries — national defense, aerospace, agriculture, semiconductors and cybersecurity — which are based on the National Science and Technology Council’s national core technology list, he said.
The bill, once passed in the legislature, is expected to attract up to NT$160 billion of investment across almost all industries. It would benefit more than 1,500 companies by making their investments in smart machines, 5G mobile networks, cybersecurity, AI and low carbon equipment all tax-deductible, Tsou added.
Asked why the thresholds for investment amounts were lowered, Investment Review Department Deputy Director Lu Tseng-hui (呂貞慧) said investment amount thresholds go along with the maximum outbound investment amount decided by the central bank, which rose to NT$3 billion from NT$1.5 billion last month, to the benefit of investors’ capital planning and allocation.
Asked whether “certain countries” include China, she said that would be specified in the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例) and would not be included in the statute.
‘DENIAL DEFENSE’: The US would increase its military presence with uncrewed ships, and submarines, while boosting defense in the Indo-Pacific, a Pete Hegseth memo said The US is reorienting its military strategy to focus primarily on deterring a potential Chinese invasion of Taiwan, a memo signed by US Secretary of Defense Pete Hegseth showed. The memo also called on Taiwan to increase its defense spending. The document, known as the “Interim National Defense Strategic Guidance,” was distributed this month and detailed the national defense plans of US President Donald Trump’s administration, an article in the Washington Post said on Saturday. It outlines how the US can prepare for a potential war with China and defend itself from threats in the “near abroad,” including Greenland and the Panama
The Chinese Nationalist Party (KMT) is maintaining close ties with Beijing, the Democratic Progressive Party (DPP) said yesterday, hours after a new round of Chinese military drills in the Taiwan Strait began. Political parties in a democracy have a responsibility to be loyal to the nation and defend its sovereignty, DPP spokesman Justin Wu (吳崢) told a news conference in Taipei. His comments came hours after Beijing announced via Chinese state media that the Chinese People’s Liberation Army’s Eastern Theater Command was holding large-scale drills simulating a multi-pronged attack on Taiwan. Contrary to the KMT’s claims that it is staunchly anti-communist, KMT Deputy
RESPONSE: The government would investigate incidents of Taiwanese entertainers in China promoting CCP propaganda online in contravention of the law, the source said Taiwanese entertainers living in China who are found to have contravened cross-strait regulations or collaborated with the Chinese Communist Party (CCP) could be subject to fines, a source said on Sunday. Several Taiwanese entertainers have posted on the social media platform Sina Weibo saying that Taiwan “must be returned” to China, and sharing news articles from Chinese state media. In response, the Mainland Affairs Council (MAC) has asked the Ministry of Culture to investigate whether the entertainers had contravened any laws, and asked for them to be questioned upon their return to Taiwan, an official familiar with the matter said. To curb repeated
Myanmar has turned down an offer of assistance from Taiwanese search-and-rescue teams after a magnitude 7.7 earthquake struck the nation on Friday last week, saying other international aid is sufficient, the National Fire Agency said yesterday. More than 1,700 have been killed and 3,400 injured in the quake that struck near the central Myanmar city of Mandalay early on Friday afternoon, followed minutes later by a magnitude 6.7 aftershock. Worldwide, 13 international search-and-rescue teams have been deployed, with another 13 teams mobilizing, the agency said. Taiwan’s search-and-rescue teams were on standby, but have since been told to stand down, as