To address the impact of U.S. tariff policies on Taiwanese exporters, the government promulgated the Special Statute on Strengthening the Resilience of the Economy, Society, and National Security in Response to International Developments to promote the “Support Plan for Taiwan’s Export Supply Chain in Response to U.S. Tariffs.” The Plan comprises 9 key areas and 20 measures aimed at stabilizing the national economy, ensuring steady industrial development, and safeguarding people's livelihoods.

Among these, the Ministry of Finance's fiscal support measures in terms of tax incentives provide tax benefits such as “Tax Credits for R&D and Equipment Expenditures” and the “Expanded Eligibility for Tax Credits.”

Tax Credits for R&D and Equipment Expenditures

To encourage industrial innovation and transformation, the Industrial Innovation Statute（hereinafter referred to as “the Statute”) provides a range of tax incentive measures. These incentives are not limited to specific industries—any company or limited partnership that meets the relevant requirements may apply.

The main incentives fall into three key categories. Enterprises engaging in qualifying activities are encouraged to make full use of these measures to help reduce their tax burden.

• To encourage R&D innovation, Article 10 of the Statute provides an “Investment Tax Credit for R&D Expenditures.”
• To promote smart transformation, Article 10-1 of the Statute provides an “Investment Tax Credit for Smart Machinery and Other Equipment,” and Article 23-3 of the Statute provides a “Tax Incentive for the Deduction of Undistributed Surplus Earnings When Used for Substantive Investments.”
• To support the development of startups, Article 23-1 of the Statute provides a “Tax Incentive for Venture Capital Enterprises in the Form of Limited Partnerships,” and Article 23-2 of the Statute provides a “Tax Incentive for Individual Angel Investors.”

Expanded Eligibility for Tax Credits

In response to industrial development needs and the international situation, certain provisions of the Statute were amended and promulgated on May 7, 2025.

• In response to technological advancements and the dual transformation trends of digitalization and net-zero emissions, Article 10-1 of the Statute has been amended. The scope of eligible investments has been expanded to include items related to artificial intelligence, as well as energy conservation and carbon reduction. In addition, the maximum qualifying expenditure amount has been increased to NT$2 billion, and the implementation period has been extended to December 31, 2029. These measures aim to continuously optimize the industrial structure, promote smart upgrading and transformation, and enhance enterprises' competitiveness in response to rapidly evolving international conditions.
• To encourage capital investment in startups and support their subsequent operations, the eligibility requirements under Articles 23-1 and 23-2 of the Statute have been amended. These changes aim to promote increased investment in startups by enterprises and individuals, thereby achieving the policy objective of fostering a thriving startup ecosystem.

1. Article 23-1: The required threshold for the aggregate capital contribution has been lowered from NT$300 million to NT$150 million, and the minimum proportion of investment in startups has been increased.
2. Article 23-2: The eligibility criteria have been broadened by expanding the definition of domestic innovative startups to those established for less than five years, reducing the minimum investment amount to NT$500,000, and extending the required holding period to three years. Additionally, the annual maximum deductible amount has been increased to NT$5 million, of which investments in general high-risk startups are capped at NT$3 million.