By: Fan Cheng-hsiang and Evelyn Kao
Taipei, July 3 (CNA) The Legislature passed a special bill Wednesday aimed at encouraging remittances of funds from abroad, by offering preferential tax rates to potential returning investors.
Under the bill, Taiwanese individuals and companies abroad will be eligible for a special tax rate of 8 percent and 10 percent, respectively, on inward remittances in the first and second years after the new law takes effect, compared with the current 20 percent levied on such funds.
If their remitted funds are invested in specific industries, such as the "five plus two" innovative industries–the Internet of Things, biotechnology, green energy, smart machinery and defense, plus high-value agriculture and the circular economy — they will receive a tax rebate of 50 percent, according to the bill.
That actually means they will be given a preferential tax rate of 4-5 percent on their remittances.