The Legislative Yuan yesterday passed amendments to the Industrial Innovation Act (業創新條例) which include tax breaks to encourage investment in technology related to artificial intelligence (AI), energy conservation and reducing carbon emissions.
The changes are headed to President William Lai’s (賴清德) desk.
The amendments initially written by the Cabinet stipulated that purchases of equipment that use AI, save energy or cut emissions would qualify for tax deductibles of up to NT$2 billion (US$61.33 million).
Photo: George Tsorng, Taipei Times
According to the amendments, AI, energy conservation and emission-cutting equipment could be counted toward tax deductibles of up to NT$2 billion, effective retroactively from Jan. 1 this year to Dec. 31, 2029.
Companies operating in sensitive industries must obtain prior approval from the relevant government agency before investing in certain foreign countries or deploying key technologies abroad.
The amended act includes penalties for unauthorized exports of sensitive technologies, where no such provisions previously existed.
Under the new rules, investing in the development of key technologies in a foreign country without prior approval is punishable by an initial fine of NT$500,000 to NT$1 million, with repeat contraventions subject to fines ranging from NT$500,000 to NT$10 million, the amendments say.
Unauthorized foreign investments deemed to compromise national security or economic development are also subject to repeatable fines ranging from NT$500,000 to NT$10 million.
Regulators are authorized to block such investments in part or in full if they are found to endanger national security, hinder economic development, breach international treaties or conventions, or involve unresolved and significant labor disputes.
Investors in start-ups are eligible for tax incentives during the first five years of their investment, provided the amount exceeds NT$500,000.
Additionally, investments in start-ups operating in industries designated as critical to national economic development can receive annual tax breaks of up to NT$5 million a year.
The collection of stock transfer tax could be delayed by five days if the day of the deal falls adjacent to a long weekend, and the penalty for noncompliance has been adjusted.
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