Billions of new Taiwan dollars in foreign funds continue to flow to Taiwanese shores, along with new jobs, with the help of incentive programs
By Chen Cheng-hui / Journalist
The finance ministry has received requests to repatriate NT $ 355.9 billion ($ 12.83 billion) in foreign funds since a repatriation law came into effect on August 15, 2019, the ministry said. at a weekly cabinet meeting on Thursday.
As of Sept. 14, the ministry had approved around NT $ 301.7 billion in funds repatriated overseas, including NT $ 180 billion from for-profit companies and NT $ 121.7 billion from individuals, the government said. ministry in a press release.
The legislator adopted the Law on the Use and Taxation of Foreign Funds Transfers (境外 資金 匯 回 管理 運用 及 課稅 條例) in July 2019, as part of government incentives to help investors rebalance their management of global funds and encourage them. to return capital to Taiwan.
Photo: Clare Cheng, Taipei Times
It provides for a tax rate of 8% the first year and 10% the second for repatriated funds, with further reductions at a preferential rate of 4% the first year and 5% the second if the funds are returned and invested on time.
Since the law was enacted, approximately NT $ 113.7 billion of repatriated funds have been invested in local industries, mainly in the information and communications industry, and have generated NT $ 25.5 billion. of tax revenue, the ministry said.
“As the approval of repatriation requests takes time and repatriation and investment undergo certain procedures, repatriation and investment amounts are likely to continue to increase,” the ministry said.
The ministry said the U.S.-China trade dispute and the COVID-19 pandemic had taken its toll on the global economy in recent years.
“However, with full cooperation between the Ministry of Finance, the Ministry of Economic Affairs, the Financial Supervisory Commission and the Central Bank, the results of the implementation of the law on the repatriation of funds abroad are in line. expectations and inject energy into the national economy, “he added. It said.
Besides the repatriation law, the return of Taiwanese manufacturers and political efforts to facilitate domestic investment have also boosted the Taiwanese economy in the past two years, government officials and economists said.
According to data from the three major investment incentive programs of the Ministry of Economic Affairs for Taiwanese companies abroad, the ministry approved applications from 1,002 companies for a combined amount of $ 1.34 trillion on Friday. NT since the launch of the incentive programs in early 2019.
The investments are expected to create 113,775 jobs, the ministry said in a statement Friday, after approving plans for four other companies.
These include Jyu Sin Steel Co (鉅 昕 鋼鐵), Chiao Kuo Energy Technology Co (喬 國 能源 科技) and Polymate Plastic Co (百 納 塑膠), to invest a total of NT $ 1.1 billion in Taiwan.
The programs, which provide participating businesses with assistance with financing, taxation, land, utilities, and labor, remain valid for one year as part of the government’s efforts to help Taiwanese businesses overseas get established. reposition in the global market and stimulate economic momentum, the ministry said. .
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