MOEA Revises Investment Tax Incentives for Manufacturing, Internet Industries

Taipei, Nov. 7, 2005 (CENS)--The Ministry of Economic Affairs (MOEA) has worked out a draft revision on investment tax incentives applicable to the Internet and manufacturing industries.

Contained in the MOEA's Statute for Industrial Upgrading, the revised measure will be implemented from the beginning of next year until the end of 2007.

Under the measure, the investment tax incentive ratio for manufacturing firms for procuring information and communication equipment will be slightly lowered to 10% from the present 11%, the ratio for procuring automated equipment will be cut to 7% from the present 11%; and the ratio for procuring automation technologies will be dropped to 5% from the present 10%.

To be eligible for tax incentives, the purchased information and communication equipment should include industrial-use computers, networking and communications equipment (excluding optical fiber and cable), and hardware and software for enhancing enterprises' digital efficiency.

The automated equipment suitable for the 7% investment tax incentives includes numerically controlled machine tools (machining centers, NC lathes, chemical grinding machines, and NC special-purpose machines), pressing machines with automated loading devices, automated industrial machines, and automated conveyers (including automated warehouse equipment).

Companies procuring automation technologies-such as the software needed to operate the automated machines-will be able to receive a 5% investment tax incentive.

The revised measure also stipulates that firms applying for the investment tax incentives should procure suitable equipment and technologies worth more than NT$600,000 (US$17,850 at US$1:NT$33.6) in a single fiscal year.