Taiwan Issues Final Regulations for Investment Incentive Providing Retained Earnings Tax Reduction

Taiwan's Ministry of Finance has announced the issuance of final regulations on 8 January 2020 for the introduction of an incentive to promote business investment. The incentive provides a reduction of the 5% retained earnings tax, and possible refund, through the deduction of qualifying investments made from the retained earnings tax base.

The incentive applies for after-tax earnings generated in 2018 and future years that are invested in qualifying assets within three years after the resp…