Taiwan's legislature has passed a draft bill that will allow certain tech companies to deduct a larger portion of their business taxes. That decision came on Thursday, in an attempt to support the country's technology research and innovation.
The draft bill says tech companies that are key to the global supply chain can use 25% of their research expenditures as a business tax deduction. Companies can also deduct 5% of their advanced equipment costs from their business taxes.
With this draft amendment, lawmakers hope to secure the position of the nation's key semiconductor industry and other sectors. The new rules also encourage tech companies to invest more in research development and advanced equipment.
The draft says each businesses' tax deductions cannot exceed half of its total taxes due for that year. The Economics Ministry says it aims to implement these new tax rules at the beginning of January and they should remain in effect until the end of 2029.