Since the cross-strait and two conferences resumed communication channels in May 2008,,6 agreements have been signed,The institutionalization of consultations between the two sides of the Taiwan Strait has entered a stage of normalization.,in addition,The Cross-Strait Economic Cooperation Framework Agreement was officially signed on June 29, 2010.(ECFA),Effective on September 12 of the same year,The early harvest plan for trade in goods and trade in services has been fully implemented since January 1, 2011.,Items in the list start to be discounted/tax-free,To benefit people on both sides of the Taiwan Strait。
ECFA is not only the foundation for opening up cross-strait markets and promoting economic cooperation,It is also an important touchstone for testing cross-strait relations in the future.,It will help Taiwan continue to play the role of a global multinational company's gateway to the mainland market and domestic companies' global layout.,At the same time, domestic companies are actively extending manufacturing value to integrated service value.。
Global layout experience and upstream and downstream integration foundation,A flexible enterprise、In addition to sound infrastructure and an industrial environment suitable for advanced technology research and development,The competitiveness of Taiwan's technology industry mainly relies on excellent high-tech infrastructure and R&D talent gathering,Has become a global supply base for high-tech products。
In recent years, Taiwan has become increasingly internationalized,In order to bring the tax system in line with international development trends,Create a fair and reasonable tax environment,And in response to economic development changes and cross-border investment needs,Taiwan’s tax system has undergone many revisions and reforms。
•In 1998, the profit-making enterprise income tax and comprehensive income tax were integrated into one system. •In 2005, anti-tax avoidance measures - transfer pricing system were implemented. •In 2006, the minimum tax burden system for income tax was implemented. •In 2009, the loss deduction period was extended from 5 years to 10 years. •In 2010, the Industrial Innovation Regulations were implemented.,Continuing to promote industrial upgrading regulations • Anti-tax avoidance measures - anti-own capital dilution system implemented in 2011 • Special services and labor tax regulations implemented in 2011 to promote international economic and trade exchanges and avoid double taxation in cross-border transactions,Signed a Cross-Strait Shipping Agreement and a Supplementary Air Transport Agreement with the Mainland,Cross-Strait agreement to mutually reduce business tax and income tax for shipping and air transport。
To provide incentives for foreign and mainland investors to invest in Taiwan,Taiwan provides a suitable business operating environment,In terms of land cost,Commercial office building rents in Taiwan are lower than those in other countries,and continuously improve administrative processes,Accelerate manufacturers’ acquisition of land,Software that facilitates investment and establishment by foreign and local businesses、Logistics and manufacturing base。Due to the active development of new scientific industrial parks、General industrial zone and establishment of free trade port zone。
Taiwan’s hydropower、Infrastructure such as transportation and telecommunications is complete,And meet the needs of various investment industries • Complete international transportation and logistics capabilities • High-quality and cheap water, electricity and telecommunications services • High broadband penetration rate • International airports/international commercial ports/passenger transport/railways/roads and high-speed railways significantly shorten the travel time between the north and the south •Plan multiple tax policies,For example, lowering the income tax rate for profit-making enterprises and providing investment deductions for R&D expenditures for industrial upgrading. Taiwan has a good tax environment.,Simple declaration procedure,The collection process is open and transparent,Smooth communication channels with tax collection agencies,The government will continue to implement tax reforms in response to the economic situation.,For example, reducing comprehensive income tax、Profit-making enterprise income tax and inheritance and gift tax rates, etc.,Make Taiwan’s investment environment more attractive in the Asia-Pacific region。
Foreign investment in Taiwan,Protected by foreign investment regulations,Provide a highly secure investment environment。In terms of business environment,Have business regulations,In addition to the protection of intellectual property related to general commercial activities,It also has a complete labor protection system,The "Labor Standards Act" is the main labor law,To further promote labor-management cooperation and provide workers with comprehensive employment guarantees。
Accounting system of Taiwanese enterprises,International accounting standards (IFRS) will be gradually adopted,Have a principled basis、no exceptions、minimum requirements、Features such as professional judgment required,Can improve financial reporting transparency、Reduce capital costs、Save on reprogramming costs。Coupled with the further loosening of cross-strait policies,,The overall investment environment has been aligned with international standards。
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