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Incentives for doing business in Taiwan: Kaohsiung City

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This article is part of an ongoing series detailing incentives offered by cities, counties, and the central government to companies operating in Taiwan. The goal of these pieces is to raise awareness among foreign enterprise as to the advantages of doing business in Taiwan and attract foreign participation in Taiwan’s economy. Hopefully, the information presented herein will incite interest in various locales on this beautiful island and prompt interested parties to seek further information.

Kaohsiung City offers 2014 investment incentives in the form of the Kaohsiung City Ordinance for the Promotion of Industrial Development, and Kaohsiung City Implementation Regulations for the Promotion of Industrial Development. Eligible applicants include: (1) strategic industry enterprises that carry out new investment of NT$30 million or the addition of 30 or more new Taiwanese workers in Kaohsiung City, and that meet one of the following conditions: (a) company registration in Kaohsiung City (b) government-approved branch companies or R&D centers established in Kaohsiung City by companies whose stocks are listed on the stock market or traded on the premises of stock brokers or (2) new investment of NT$30 million or more and hiring of 30 or more new Taiwanese workers.

Strategic industries include: culture/creation, green energy, boutique agriculture, meetings and exhibitions, biotechnology, healthcare, tourism and leisure, international logistics, yachts, information technology, electronics and telecommunications R & D, high value-added metal product manufacturing, and other industries being promoted by the government. Key industries for development in Kaohsiung City include: culture/creation, biotechnology, information software, electronics, and telecommunications R&D, industries especially approved for development in free economic demonstration zones, and strategic industries that can generate development-type job opportunities and involve investment projects of a certain scale and synergies of a critical nature and development potential that have been approved by the Review Committee for Kaohsiung City Industry Development.

Incentives include: loan interest subsidies covering 2.5 percentage points of annual interest rates, up to NT$1.5 million per year for a maximum of five years and, for key industries for development, a subsidy of 2.5 percentage points on annual interest rates, up to NT$6 million per year for a maximum of five years. Real estate subsidies to cover 50% of real estate rental up to NT$400,000 per year for a maximum of five years and to cover the full amount of house tax for first two years and 50% for the subsequent five years, up to a total of NT$5 million. Salary subsidies for newly added employees of NT$5,000 per person per month for 12 months, up to a maximum of 30 workers, at least 80% of whom must be residents of Kaohsiung City, per investment project. Subsidies are available for workers who are hired within one year prior to or one year after receipt of subsidy application. For key industries development, the subsidy for newly added employees is 30% of total salary up to NT$10,000 per month for 12 months and a maximum of 200 employees, at least 80% of whom must be residents of Kaohsiung City, per investment project. Subsidies are available for workers who are hired within one year prior to or five years after receipt of subsidy application. Finally, subsidies to cover 50% of the cost of worker training up to a maximum of five years and a total subsidy of NT$300,000.

For more information, please contact the Department of Investment Services, Ministry of Economic Affairs at (02) 2391-4950.