On 26 March 2024, the Ministry of Finance of Taiwan released a notice on the application deadline for the recognition of R&D activities for the R&D investment tax credit.

According to the National Taxation Bureau of Taipei, the Ministry of Finance, companies or limited partnerships that invest in R&D expenses may, in accordance with Article 10 of the Statute for Industrial Innovation, choose to offset up to 15% of the R&D expenses against the profit-seeking enterprise income tax payable in the then-current year or to offset up to 10% of the R&D expenses against the profit-seeking enterprise income tax payable in the three subsequent years.

Once the incentive is chosen, it cannot be changed, and the creditable amount shall not exceed 30% of the profit-seeking enterprise income tax payable in the then-current year.

The Bureau explained that if a company or a limited partnership has not violated the laws related to environmental protection, labor safety and health, or food safety and sanitation laws in the past three years, and if the company or limited partnership intends to apply for investment tax credit for R&D expenses, the company or limited partnership shall apply for the recognition of R&D activities by submitting relevant documents to competent authorities within three months before the beginning of the current year’s profit-seeking enterprise income tax return filing period to the deadline of such period.

The National Taxation Bureau of Taipei also reminded companies or limited partnerships that intend to apply for the investment tax credit under Article 10 of the Statute for Industrial Innovation for R&D expenses for the year 2023 that they should apply for the recognition of R&D activities and project expenses to competent authorities within the aforementioned period so as not to jeopardize the right to apply for the tax credit.