Taiwan, launched a tax incentive plan to encourage the internationalization of Taipei companies.
The President Ma Ying-jeou yesterday approved a pilot project (Executive Yuan's Plan) for the creation of a 'Taiwan free economic zone' and set up a task force to present the benefits of the plan to public opinion and businesses. The Executive Yuan's Plan was designed to bridge the gaps hampering trade, with the aim of connecting Taiwan's economy more closely to world markets.
A spokesman for the president's office said the plan needs to be finalized and implemented for the country to be able to overcome the current state of low growth. The watchwords are deregulation and market opening, which would lead Taiwan to enjoy the benefits of more jobs and higher wages. Another effect of the implementation of the Executive Yuan's Plan should be to accelerate the achievement of the conditions required for Taiwan's participation in free trade agreements with other countries in the Asian area, exerting a positive effect on economic growth thanks to the increase in domestic consumption.
President Ma said he cares deeply about the project and has placed great emphasis on the importance of adequately informing enterprises. As a preliminary measure to the formation of the 'Free economic zone', all Taiwanese companies operating overseas and joining the program will be exempt from taxation on dividends and income for three years; in addition, foreign companies setting up manufacturing or warehousing operations within the zone will be relieved of 100% of taxes on exports and 10% of those on imports. Furthermore, to promote innovation, the incentives of the area will be extended to the health, financial, agricultural, education and logistics sectors. The 'Beijing Association for Taiwanese Enterprises (BATE)' praised the initiative, but also recalled that Taiwanese companies active abroad are looking for a "favorable" environment to decide whether to bring investments back home, and not only tax breaks. Whether an environment can be defined as favorable depends on how many foreign workers companies can hire, the restrictions placed on the flow of capital, and how easily the yuan can circulate within the zone, thus reducing costs. of currency exchange.
http://www.chinapost.com.tw/taiwan/national/national-news/2013/12/16/396095/p2/Ma-gives.htm
