Taiwan’s Legislative Yuan has approved amendments to the Statute for Industrial Innovation, increasing tax incentives for investments in artificial intelligence (AI), carbon emission reduction technologies, and startups on 18 April 2025.
The annual tax credit cap for eligible business investments has been raised from TWD1 billion to TWD 2 billion, effective through 31 December 2029.
The revised law also increases the individual income tax deduction limit for investments in key industries from TWD 3 million to TWD 5 million.
Additionally, the minimum capital requirement for venture capital firms investing in startups has been reduced from TWD 300 million to TWD 150 million.
To protect critical technologies, businesses must obtain prior government approval before investing in designated high-risk countries—such as Iraq and Iran—or in sensitive industries including military-use carbon fiber, satellite technology, semiconductors, and post-quantum technologies.
Investors without required approval may face fines ranging from TWD 50,000 to TWD 1 million. Those who fail to take corrective action after a warning may be fined between TWD 500,000 and TWD 10 million.
The changes are set to take effect retroactively from 1 January 2025, pending final approval by the Executive Yuan.
