To promote investment, the central competent authority shall be responsible for the following matters:
1. Establishment of an inter-ministerial coordination mechanism.
2. Provision of consultation and assistance with respect to investment procedures and relevant matters.
3. Promotion and coordination of major investment plans.
4. Consultation and assistance with regard to other matters in furtherance of investment.

To encourage industries to use international resources, the central authorities in charge of relevant enterprises may provide appropriate assistance and guidance with respect to overseas investment or international technology collaboration.
The regulations governing the recipients of assistance and guidance with respect to the overseas investment and technology collaboration as referred to in the preceding paragraph, the eligibility criteria, the review standards, the application procedures, the approving authority, and other relevant matters shall be prescribed by the central authorities in charge of relevant enterprises.

Companies wanting to undertake overseas investment shall apply for approval from the central competent authority before making the investment, provided that overseas investments of NT$1.5 billion or less may be reported to the central competent authority after the investment has been made.
The regulations governing the methods used to make overseas investment as referred to in the preceding paragraph, the types of investment, the application deadline, the application procedures, and other relevant matters shall be prescribed by the central competent authority.

To attract funds back for investment in Taiwan, the central competent authority may introduce measures to help investors obtain land for industrial use as an incentive for such investments.

To help innovative startups develop, a venture capital enterprise as referred to in Article 32, incorporated between January 1, 2017 and December 31, 2029 in accordance with the Limited Partnership Act is eligible for the tax benefit under Paragraph 4.
1. A venture capital enterprise contributing capital annually, meeting the requirements of one of the following subparagraphs, and from the second year of its establishment, using each year’s funds equal to at least 50% of the aggregate capital contributions substantially received in that year within the territory of the R.O.C. or investing such funds in foreign companies conducting their substantial operational activities within the territory of the R.O.C. in accordance with the R.O.C. government’s policy as approved by the central competent authority on a yearly basis:
(1) In the year of establishment and the second year: The total capital to be contributed in accordance with the limited partnership agreement reaches NT$300 million as of the last day of the respective year.
(2) In the third year of establishment: The aggregate capital contribution substantially received by the venture capital enterprise reaches NT$100 million as of the last day of the year.
(3) In the fourth year of establishment: The aggregate capital contribution substantially received by the venture capital enterprise reaches NT$200 million as of the last day of the year, and the accumulated sum invested by it in innovative startups accounts for 30 percent or more of the total capital contribution received by the enterprise in that year or reaches NT$300 million.
(4) In the fifth year of establishment: The aggregate capital contribution substantially received by the venture capital enterprise reaches NT$300 million as of the last day of the year, and the accumulated sum invested by it in innovative startups accounts for 30 percent or more of the total capital contribution received by the enterprise in that year or reaches NT$300 million.
2. A venture capital enterprise receiving an aggregate capital contribution of NT$300 million or more in the year of incorporation, meeting the requirements of one of the following subparagraphs, and from the second year of establishment, using each year’s funds equal to at least 50% of the pre-decided aggregate capital contribution for that year within the territory of the R.O.C. or investing such funds in foreign companies conducting their substantial operational activities within the territory of the R.O.C. in accordance with the government’s policy as approved by the central competent authority on a yearly basis:
(1) In the year of establishment and the second year: The aggregate capital contribution received reaches NT$300 million as of the last day of the year.
(2) In the third year of establishment: The pre-decided aggregate capital contribution amounts to NT$100 million as of the last day of the year.
(3) In the fourth year of establishment: The pre-decided aggregate capital contribution amounts to NT$200 million as of the last day of the year, and the accumulated investment in innovative startups amounts to 30 percent of the enterprise’s pre-decided aggregate capital contribution for that year or NT$300 million.
(4) In the fifth year of establishment: The pre-decided aggregate capital contribution amounts to NT$300 million as of the last day of the year, and the accumulated investment in innovative startups amounts to 30 percent of the enterprise’s pre-decided aggregate capital contribution for that year or NT$300 million.
The pre-decided aggregate capital contribution as referred to in Subparagraph (2) of the preceding paragraph means the aggregate capital contribution for the preceding year decided by a venture capital enterprise when applying for the central competent authority’s approval on a yearly basis. The pre-decided aggregate capital contribution shall not be less than the amount of the enterprise’s actual investment accumulated from the year of establishment to the last day of the preceding year, and shall reach the aggregate capital contribution needed for the completion of fundraising before the expiration of the period in which the enterprise is eligible for the tax benefit under Paragraph 4.
Where an enterprise having been eligible for the tax benefit under Paragraph 4 subsequently goes to liquidation, the enterprise may be exempt from the restrictions under Paragraph 1 and remains eligible for the tax benefit under Paragraph 4 during liquidation.
Within ten years from the fiscal year of establishment, an enterprise conforming to Paragraph 1 may calculate its each year’s total income in accordance with Article 24 of the Income Tax Act, and calculate each partner’s profit-seeking income according to the earning distribution proportion under Paragraph 2, Article 28 of the Limited Partnership Act, and the partner may be taxed or exempt from income tax on such income in accordance with the Income Tax Act.
However, an individual or a partner in a profit-seeking enterprise whose head office is not within the territory of the R.O.C. is exempt from income tax regarding gains derived from securities transactions according to Article 4-1 of the Income Tax Act. When the earnings are distributed to a partner by an enterprise subject to this Paragraph, such earnings shall not be counted as the partner’s income.
Under special circumstances, an enterprise eligible for the tax benefit under the preceding paragraph may, three months before the expiration of the time limit, file a special request for the central competent authority’s approval of a one-time extension of the time limit for exemption under that paragraph for not more than five years.
An enterprise eligible for the tax benefit under Paragraph 4 shall, during the period of eligibility under Paragraph 4, file annual income tax returns, and current final reports on total business income or income earned from liquidation in the formats prescribed by the Ministry of Finance within the time limits set forth in Paragraph 1 of Article 71, and Paragraphs 1 and 2 of Article 75 of the Income Tax Act, and not be required to calculate or pay the payable tax; it shall not be subject to the proviso of Paragraph 1, Article 39 of the Income Tax Act regarding deduction of losses, Paragraph 1 of Article 42 of the same Act regarding exclusion of earnings from reinvestment for the purpose of calculating taxable income, or provisions for any other tax incentives in this Statute or other laws; in addition, it shall not be required to pay additional profit-seeking income tax on undistributed surplus earnings under Article 66-9 of the same Act, or declare or pay the additional income tax on retained earnings under Paragraph 1 of Article 102-2 of the same Act.
An enterprise eligible for the tax benefit under Paragraph 4 may calculate the withholding tax distributable to each partner in a year out of the amount of tax withheld from the enterprise’s income in that year according to the earning distribution proportion under Paragraph 2, Article 28 of the Limited Partnership Act. The withholding tax already paid may be offset against the income tax payable by the partner. An enterprise eligible for the tax benefit under Paragraph 4 shall, before the deadline for filing the income tax return, or the current final report on total business income or income earned from settlement or liquidation for each year, issue to each partner a certificate in the format prescribed by the Ministry of Finance indicating the partner’s income calculated in accordance with Paragraph 4 and the above-mentioned withholding tax distributable to the partner, and attribute such income to the partner’s income for the year in which the settlement date of the enterprise’s annual accounts, the day for filing its final income tax return for the current period, or the completion date on which its liquidation process falls.
Where a partner receiving income under Paragraph 4 is an individual not residing in the R.O.C. or a profit-seeking enterprise having its head office outside the territory of the R.O.C., the responsible person of the enterprise subject to Paragraph 4 shall be considered the income tax withholder. The income tax shall be withheld from the taxpayer’s income according to the applicable withholding tax rate before the deadline for filing the income tax return, or the current final report on total business income or income earned from liquidation for the current year and shall be all paid to the national treasury within 10 days after the deadline passes. Withholding certificates proving such tax payment shall be issued to the partners after the certificates have been filed with and verified by the taxation authority.
Where tax has been withheld from the partner’s income in accordance with the preceding paragraph, the withheld amount shall be deducted from the tax amount payable by the partner.
To be eligible for the tax benefit under Paragraph 4, an enterprise shall opt for the eligibility for the tax benefit under Subparagraph 1 or 2 of Paragraph 1 before the end of February in the next year after its establishment. Once an option is chosen, it cannot be reversed. During the period of eligibility, if the central competent authority finds that the enterprise does not comply with Paragraph 1, the enterprise shall no longer be eligible for the tax benefit under Paragraph 4 and shall pay tax in accordance with the Income Tax Act and the Basic Income Tax Act from the year it loses eligibility.
An innovative startup under Paragraph 1 refers to a company incorporated in accordance with the Company Act or a foreign company conducting its substantial operational activities within the territory of the R.O.C., and having been incorporated for less than five years when an enterprise eligible for the tax benefit under Paragraph 4 acquired new shares issued by the company.
A foreign company conducting its substantial operational activities within the territory of the R.O.C. under Paragraph 1 or the preceding paragraph refers to a company incorporated in accordance with the law of a foreign country, having a subsidiary or branch office in the R.O.C, and recognized by the central competent authority as meeting the following requirements:
1. The person who makes significant decisions in business management, financial management, and personnel management for the company is an individual residing in the R.O.C. or a profit-seeking enterprise having its head office within the territory of the R.O.C., or the place where such significant decisions are made is in the R.O.C.
2. The financial statements, records of accounting books, minutes of meetings of the board of directors or minutes of meetings of the shareholders are prepared or stored within the territory of the R.O.C.
3. Major business activities are carried out in the R.O.C.
The regulations for calculating the actual received capital contributions and the pre-decided aggregate capital contribution under Paragraph 1, the funds used within the territory of the R.O.C. or invested in foreign companies conducting their substantial operational activities within the territory of the R.O.C., the proportion of the funds so used or invested, the extent of compliance with the R.O.C. government’s policy, the calculation of the percentage of the accumulated sum invested in innovative startups out of the actual received capital contributions received by a limited partnership or the pre-decided aggregate capital contribution, and the application and reviewing procedures under Paragraph 1; the special circumstances and the procedure for applying for extension of the time limit for exemption under Paragraph 5; the regulations for identifying foreign companies conducting substantial operational activities within the territory of the R.O.C. under the preceding paragraph, and required supporting documents; and other relevant matters shall be prescribed by the central competent authorities in consultation with the Ministry of Finance.
Regulations for calculation of the income of enterprises subject to Paragraph 4 and the procedure for declaring such income; the timing for including deductible income in shareholder imputation credit accounts under Paragraph 7; the tax-withholding procedure under Paragraph 8; and other related matters shall be prescribed by the Ministry of Finance. The income tax withholding rates under Paragraph 8 shall be set by the Ministry of Finance and submitted to the Executive Yuan for approval.

Where an individual invests at least NT$1 million in cash in one year in domestic innovative startups that have been incorporated for less than two years and identified by the central authority in charge of relevant enterprises as high-risk innovative startups, and acquires and holds the new shares issued by the company for two years, up to 50 percent of the investment may be excluded from the individual’s consolidated income for the year in which the second anniversary of such shareholding falls. The aggregate amount excludable from an individual’s consolidated income each year in accordance with this paragraph shall not exceed NT$3 million.
The qualifications of the individuals, the scope and qualifications of the high-risk innovative startups, the application deadline, the application procedure, the calculation of the shareholding period, and the authorities giving the approval under the preceding paragraph shall be prescribed or designated by the central competent authorities in consultation with the Ministry of Finance.

To encourage profit-seeking enterprises to use their earnings to make substantial investment or upgrade production technology or the quality of products or services, if a company or limited partnership uses a certain amount of its undistributed earnings to construct or purchase buildings, software or hardware equipment, or technology for use in production or operation as needed for operation of its business or ancillary business within three years from the year after such earnings are derived, such investment amounts may be deducted from the undistributed earnings in calculation of the current year’s undistributed earnings for assessment of additional profit-seeking enterprise income tax leviable on undistributed earnings from the year 2018 under Article 66-9 of the Income Tax Act.
When a company or limited partnership eligible for the tax benefit under the preceding paragraph declares its undistributed earnings in accordance with Article 102-2 of the Income Tax Act, it shall enter the data on the prescribed forms and submit documents proving such investment to the local taxation authority.
Where a company or limited partnership eligible for the tax benefit under Paragraph 1 completes the investment after it has paid the additional profit-seeking enterprise income tax on its undistributed earnings, it shall apply to the local taxation authority for recalculation of its undistributed earnings for that year and refund of the overpaid tax by filing the prescribed forms and submitting documents proving such investment in accordance with Paragraph 1.
Regulations for the amounts of undistributed earnings under Paragraph 1, the prescribed forms and documents proving investment under Paragraph 2, the procedure for applying for refund of overpaid tax, and the documents needed to be submitted under the preceding paragraph, and other related matters shall be prescribed by the Ministry of Finance.

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To encourage companies to utilize global resources and internationalize their operations, companies may apply to establish within the territory of the R.O.C. an operational headquarters of a certain size and with significant economic benefits.
With respect to the operational headquarters of a certain size and with significant economic benefits as referred to in the preceding Paragraph, regulations governing the size, the scope of application, the application and approval procedures, and other relevant matters shall be prescribed by the central competent authority.