TAIPEI (Taiwan News) — National Development Council Minister Paul Liu (劉鏡清) said the government is considering lowering the salary requirement for tax incentives to target talent shortages in AI.

The Foreign Professionals Act allows foreigners with an annual salary exceeding NT$3 million (US$90,900) to receive a 50% tax reduction on the income over NT$3 million for five years. Their overseas income is also exempt from taxable income in Taiwan, per CNA.

Liu said the government may amend the act by lowering the NT$3 million salary threshold, referring to Singapore's policies as an example. Liu said the amendment must be discussed with the Ministry of Finance before submission to the legislative for review in May.

The AI sector is among those most affected by Taiwan’s labor shortage. Taiwan had 35,167 unfulfilled engineer positions in 2022, according to a study from New Taipei-based HR consulting services company 104 Job Bank.

Liu said the government has three approaches to target Taiwan’s AI talent shortage: promote STEM programs on campuses and allow students from outside the major to enroll in classes; provide counseling for non-IT majors to participate in graduate vocational training; and attract overseas students to Taiwan to enrich the talent pool.

The government has focused on nurturing talent domestically and attracting talent internationally. As of last year, 71,000 foreign professionals were recruited to Taiwan, 12,000 under the Taiwan Employment Gold Card, according to the NDC. 

Meanwhile, the NDC is working to make it easier for foreign professionals to work in Taiwan and expanding tax incentives to attract talent. Taiwan also introduced the Digital Nomad Visitor Visa this January.