2016-01-06 22:47:12

The Legislative Yuan passed an amendment to Statute for Industrial Innovation, which includes changes related to individual and company R&D tax deduction and employee stock rewards. 1. Companies can reward employees with stocks as remuneration, employee stock purchases on issuance of common stock, treasury stocks, stock option certificates, and new restricted employee shares (i.e. restricted stocks). The income tax on employee stock rewards within NT$5 million may be deferred for 5 years. 2. There are 2 choices for tax deduction for R&D investment: a) Credit up to 15% of the company’s total expenditure on R&D against its business income tax payable for that year b) Credit up to 10% of the company’s total expenditure on R&D against its business income tax payable within 3 years No change is allowed once the choice is made. 3. Taiwan citizens or companies may credit up to 200% of the R&D investment against the profit from R&D.