Taiwan Premier William Lai approved a corporate income tax credit plan to boost investment in smart machinery and 5G Internet, the Ministry of Economic Affairs said recently.
The measure could increase business spending on smart machinery and 5G Internet by more than US$45.39 billion over the next 4 years, Deputy Minister of Economic Affairs Tseng Wen-sheng said.
The proposed tax credits would be applicable to businesses in the manufacturing, agriculture and service sectors, among others, which spend at least NT$1 million on equipment, technology or services that are smart-machinery or 5G Internet-related, the ministry said.
Businesses are to have the option of taking a one-time 5 percent tax credit for one year or a 3 percent tax credit over three years, it said. The tax credits are capped at 30 percent of total corporate income tax for a tax year, while corporate expenditure would be capped at NT$100 million when applying for the tax credit, it said.
In response to the global emergence of Industry 4.0, or the fourth industrial revolution, the government deems the next 3 years a critical period for promoting smart manufacturing, smart industry upgrades, 5G Internet, artificial intelligence and the Internet of Things, the ministry said.
As the full commercialization of 5G servers is anticipated in 2020, the government is to facilitate “smart living” by leveraging applied Internet technology, it said.
Source: Taipei Times
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