2014-10-24 16:21:55

1. There are 2 tax credit rate choices for R&D investment. If the company wishes to extend the tax credit to 3 years, the tax credit rate would be 10%. If the company wishes to use the tax credit for the current fiscal year, the tax credit rate is would be 15%. 2. In the case of the value of technical know-how being invested as the capital of the corporation, the tax can be deferred for 5 years according to the laws. The applicable technical know-how includes patents and technical expertise. It should be approved by competent government authority and limited to the know-how used by the company only. Documentary evidence for the value of the know-how must be provided. If such evidence is not provided, only 30% of the claimed value can be used for the deferred taxation. 3. The deferred taxation limit for employee rewards is 5 million NTD. The 5 rewards include employee bonus, restricted stock, employee stock options, treasury shares and cash capital increase