International Logistics Operators Get Five-Year Tax Holiday

A revision of the Incentive Regulations for International Logistics Enterprises in Newly Emerging, Important and Strategic Industries, promulgated by the Executive Yuan on Nov. 30, is designed to encourage the development of Taiwan’s international logistics industry. Under the revision, international logistics companies that engage in value-added freight consolidation and distribution services or after-sales repair and maintenance services, with goods that are ultimately for export, and the government-approved investment plans of which reach the incentive threshold, may choose shareholder investment tax credits or a five-year income tax holiday. Conditions for meeting the incentive threshold include the following: 1) Paid-in capital or paid-in capital increase of at least NT$100 million, of which at least NT$50 million is used for actual investment or, if no civil-engineering procurement is involved, at least NT$30 million is used for actual investment; or 2) paid-in capital or paid-in capital increase of at least NT$10 million; for companies engaging in after-sales repair and maintenance services, an increase in accumulated net operating income of at least NT$300 million during the period of the investment project; for companies that engage in value-added freight consolidation and distribution services, or that engage concurrently in value-added freight consolidation and distribution services and after-sales repair and maintenance services, an increase in accumulated net operating income of at least NT$400 million during the period of the investment project.