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Author: James Chang 763 views

In order to encourage Taiwanese manufacturers to adopt advanced manufacturing technologies, income tax on the royalties paid to a foreign company shall be exempted if the royalties are paid in order to introduce new production technology or products, to improve product quality, or to reduce production costs; the same is true for remunerations paid to foreign companies for technical services rendered in construction of factories for an important production enterprises.

Reduced Rates

The tax on the royalty would be exempted if approved.


There are two stages:

Stage 1. Technical Review

To evaluate technical depth, applicable industries, and effects, the case would be sent to Industrial Development Bureau. This stage usually would take 2-4 weeks.

Stage 2. Transaction Review

After the technical review, the case would be forwarded to Tax Bureau to clarify transaction details. It usually would take 4-8 weeks.


Both the contract and the evidence of service provision will be required.

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