Incentives & Subsidies

To encourage investment by enterprises, the Taipei City Government has promulgated the "Taipei Municipal Self-Government Ordinance for Industrial Development," offering various subsidy and preferential tax programs depending on the needs of different industries. The purpose is to support sustainable business growth and investor profits. According to the Ordinance, companies engaged in strategic industries are entitled to R&D subsidies and various investment incentives, such as occupational training allowances, loan interest subsidies, and preferential rates for housing and land value taxes.

Investment Subsidies Related Subsidy Items
  • Creativity subsidies: 50% of the total amount with a maximum of NT$1 million
  • R&D subsidies: 50% of the total amount with a maximum of NT$5 million
  • Branding subsidies: 50% of the total amount with a maximum of NT$5 million
  • Incubation subsidies and the "Angel Program": Maximum NT$3 million for each project
  • Subsidy on Employee Training: Maximum NT$1 million
  • Subsidy on Employee Salary: Maximum NT$5 million
  • Subsidy on Loan Interest: Maximum NT$50 million
  • Rent Subsidy: Maximum NT$5 million
  • Subsidy on House Tax/Land Value Tax: Maximum NT$50 million
  • Exemption or reduction of rent for two to five years against public-owned houses or land

Taipei Municipal Self-Government Ordinance for Industrial Development

Eligibility Requirements for the Incentives
  • The Ordinance shall be applicable to small and medium enterprises which have been lawfully registered in Taipei, as well as foreign companies which have registered in the local municipality.
  • The applicant shall be a company registered in Taipei city and engaged in strategic industries, of which the newly-invested or increased paid-in capital (on a one-off basis) is not less than NT$80 million.
  • The application shall be filed within one year after the next day of completing the registration for new established company or for change in paid-in capital.
Incentives for Investment Vocational Training for Employees A subsidy equal to 50% of the training expenses shall be provided. The maximum amount is NT$800,000. The amount shall be increased to NT$1 million if the case involves the new employment of middle-aged or elderly unemployed workers.
Subsidy on Employee Salary The maximum subsidy is NT$10,000 per month for each employee. The maximum period for the subsidy shall be one year. The ceiling amount for total subsidy granted shall be NT$5 million.
Subsidy on House Tax and Land Value Tax The government shall provide 100% subsidy for the first two years and 50% for the subsequent three years. The maximum subsidy shall be NT$50 million.
Private Rental Subsidy on Land and Houses The government offers this subsidy for the rental of private houses or land in the municipality. The maximum percentage of subsidy shall be 50%, up to a term of five years. The ceiling amount is NT$5 million.
Loan Interest Subsidies The government offers loan interest subsidies at a maximum of 2.5% p.a. and NT$50 million in total. The maximum duration of the subsidy shall be two years.
Rent Reduction or Exemption for Public-owned Houses or Lands The rent shall be exempted during the construction period. 50% of the rent shall be paid starting from the date of receiving the license for usage. The duration thereof shall be 2-5 years.
R&D Subsidies The total amount subsidized shall not exceed 50% of the total budget for the project. The maximum amount shall be NT$5 million.
Contact Department of Economic Development, Taipei City Government
TEL: +886-2-27208889, ext. 6564/6574
Website: http:// www.doed.taipei.gov.tw

Taipei City Local Industry Innovative R&D Promotional Plan (localized SBIR)

Eligibility Requirements The applicant shall be a business entity meeting the conditions prescribed in the "Standards for Identifying Small and Medium-sized Enterprises" and having lawfully completed its company/commercial/factory registration in Taipei City. It shall also conform with the following criteria:
  • The applicant shall be an enterprise in the manufacturing, construction, mining, or quarrying industry with either a paid-in capital of NT$80 million or less, or has less than 200 regular employees.
  • The enterprise shall be an enterprise in an industry other than those mentioned in the Sub-paragraph immediately above and either had sales revenue of NT$100 million or less in the previous year, or has less than 100 regular employees.
Subsidized Items and Amount The subsidized items shall include material expenses, usage and maintenance costs for R&D equipment, personnel expenses, technology introduction (critical intellectual properties), and contracted research expenses.
Duration of the R&D Projects The minimum length of the project shall be 6 months, and the maximum duration shall be one year.
Period for Application The invitation to apply is scheduled in April each year (with a duration of about two months). Online reservation is required.
Contact Department of Economic Development, Taipei City Government 1999 (+886-2-27208889, ext. 6573)
Taipei City Government: Localized SBIR Project Office
TEL: (02)27377377, (02)27377360, ext.694
Website: http://local-sbir.gov.taipei/

To encourage innovation and investment, the "Taipei Municipal Self-Government Ordinance for Industrial Development" also offers various subsidy & incentive programs for start-ups, R&D projects, brand management, and angel incubation, as well as for rented houses and land, employee salaries, and training expenses. As of June, 2016, the city government has received a total of 1,761 applications, of which 819 have been approved. The subsidized amount has exceeded NT$868.18 million, leading to business innovative investments of more than NT$17.1 billion and an increase in total productivity by NT$104.7 billion. The initiative also created additional employment opportunities for more than 5,700 people.

Related Link:Subsidies and Incentives for Taipei Industries (SITI)

Other Incentives and Subsidies

To attract investment, the central government offers various incentive programs, such as incentives relating to operational headquarters, research and development, and low-interest loans. Information about these preferential programs for foreign and overseas Chinese investors is listed below.

The business income tax rate has been lowered to 17%, which is lower than many Asian countries such as Japan, Korea and China.

  Taipei Singapore Tokyo Bangkok Seoul Hong Kong Shenzhen Shanghai Beijing Tianjin
Business Income Tax Rate (%) 17 17 30 15 22 16 25 25 25 25

Foreign and overseas Chinese enterprises that intend to establish business operations in Taiwan may apply for R&D subsidies according to the various sub-programs of the "A+ Industrial Innovative R&D Program."

The Industrial Technology Foresight Research Program

Eligibility Requirements

Applications may be submitted by one or more companies, or jointly by a company and research institute(s). If the applicant is a company, it must be a lawfully registered partnership enterprise, sole proprietor, or company. It the applicant is a research institute, it must meet the qualification requirements specified in Article 13 of the "Regulations Governing the Subsidies Granted by the Ministry of Economic Affairs for Promoting Industrial Innovation and R&D by Research Institutes."

Program Contents

The subsidies are provided mainly to encourage the development of services, products, or technologies to meet the market demand in the forthcoming three to five years. The contents of the subsidy shall, in principle, be announced by the MOEA. The ratio of subsidy shall be 40% or more of the total budget for the program, with a ceiling amount of 50%

Integrated R&D Programs

Eligibility Requirements

An eligible applicant shall be an R&D alliance consisting of three or more lawfully registered partnership enterprises, sole proprietorships, or companies. The application shall be submitted to the MOEA by the leading company of the alliance.

Program Contents

The purpose of the program is to encourage the establishment of alliances to facilitate vertical integration, horizontal interaction, or unification of R&D procedures among the participants. This includes technology, R&D, prototyping, β site testing, and field operations. The subsidy amount shall be more than 40% of the total budget, with a ceiling amount of 50%.

Industrial Technology Innovation Center Program

Eligibility Requirements

The program is available to partnership enterprises, sole proprietors, or lawfully-registered companies. The applicant shall not have been denied access to banking services and shall have a positive net worth (shareholders' equity).

Program Contents

The program is designed to encourage the establishment of R&D centers, focusing on long-term R&D planning and patent acquisition. Companies are also encouraged to engage high-quality R&D talents with a master’s degree or above. The maximum subsidy granted shall be NT$10 million.

Multinational Innovation R&D Center in Taiwan

Eligibility Requirements

The applicant shall be a foreign company with proven performance in research and development. It shall be a legally-permitted entity in Taiwan and have completed branch registration therein. Alternatively, the applicant shall be a company lawfully registered in Taiwan by a foreign company or institution with proven performance in research and development.

Program Contents

The program is aimed at providing financial support to domestic industries, due to the influence and effects caused by the establishment of R&D centers by multinational companies. The period of subsidy shall be three years. The maximum subsidy shall be 50% of the total budget.