Taiwan: Guidance on qualification of salary expenditures for investment tax credit
Salaries of personnel who concurrently perform administrative, management, manufacturing, or other non‑R&D duties do not qualify.
The National Taxation Bureau of Kaohsiung on March 16, 2026, issued a press release reminding taxpayers that only salaries of full‑time personnel exclusively engaged in research and development (R&D) work conducted in the Taiwan area constitute qualifying expenditures for purposes of the investment tax credit. Salaries for personnel who concurrently perform administrative, management, manufacturing, or other non‑R&D duties do not qualify.
The release further explains that salaries of personnel dispatched overseas or primarily engaged in non‑R&D functions must be excluded from eligible R&D expenditures, as illustrated by a recent audit that resulted in additional profit‑seeking enterprise income tax being assessed.
For more information, contact a KPMG tax professional in Taiwan:
Vincent Lin | vincentlin@kpmg.com.tw