Alexa

Legislature cuts business income tax to 17%

Legislature cuts business income tax to 17%

Taipei, May 28 (CNA) The Legislative Yuan approved a revision to the Income Tax Act Friday that cuts business income tax to 17 percent from 20 percent.
The new rate will take effective retroactively from the beginning of this year, according to the revision.
The revision was in line with the Industrial Innovation Act that was enacted April 16. Under that act, business income tax was fixed at 17 percent.
The revision was passed by a vote of 42 to 32, with all opposition Democratic Progressive Party (DPP) lawmakers voting against it.
Lawmaker Lee Chun-yee, secretary of the DPP legislative caucus, said his party had wanted to fix the rate at 17.5 percent, a figure that was based on the DPP's calculations.
He said the ruling Kuomintang (KMT) had at first opposed the DPP proposal for a tax cut, only to later backtrack and propose its own 17 percent cut in an attempt to outbid the DPP for public support.
KMT lawmaker Lo Ming-Tsai said that whether the tax is fixed at 17 percent or 17.5 percent, the revision is aimed at encouraging Taiwanese businessmen overseas to relocate to Taiwan.
"As long as they invest in Taiwan, it will create jobs for local people, which will serve the interests of both businesses and the government," Lo said.
Premier Wu Den-yih said April 16, when the Industrial Innovation Bill passed the Legislative Yuan, that lower business income tax will enhance the competitiveness of local companies no matter whether they are hi-tech companies or involved in labor-intensive industries.
An economic official said that with the tax reduction, Taiwan is in a good position in terms of being an attractive destination for both foreign and local investors.
Noting that taxation is a vital measurement of a country's competitiveness, the official said the 17 percent business income tax, coupled with tax incentives offered for research and development spending under the Industrial Innovation Act, will speed up the country's technological advancement.
(By Huang Ming-hsih, Lin Hui-jun and Maubo Chang)




Updated : 2021-04-12 01:02 GMT+08:00