Taiwan's legislature, the Legislative Yuan, has passed a bill to encourage foreign direct investment (FDI) in defence and other "strategic sectors". A news report by the state-run Central News Agency (CNA) said the new bill will offer "preferential tax rates to potential returning investors".
The tax incentives are applicable in investments in the industrial sectors that the government has identified as priorities for modernisation. These include defence and aerospace, 'intelligent machines', technologies to support Taiwan's development of "Asia's Silicon Valley", alternative energy, and biomedicines.
The CNA reported that the bill allows foreign investors in these sectors to claim "special tax rates" and also tax rebates of up to 50%.
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