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Taiwan: Proposals to expand investment tax credit incentives

Expanded tax incentives to artificial intelligence (AI), energy conservation, and carbon reduction

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July 10, 2025

The Legislative Yuan proposed amendments to the Industrial Innovation Act to expand the investment tax credit scope, adding artificial intelligence (AI), energy conservation, and carbon reduction.

The credit limit would increase from TWD 1 billion to TWD 2 billion. Additionally, startup tax incentives may extend from two years to five, with lowered capital thresholds for venture capital entry. Angel investor benefits would revise the threshold to TWD 500,000.

The Ministry of Economic Affairs plans collaboration to implement these incentives from January 2025 to December 2029.


For more information, contact a KPMG tax professional in Taiwan:

Vincent Lin | vincentlin@kpmg.com.tw

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