Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 18 November, 2020

General Information

Aiming at alleviating the impact of the coronavirus (COVID-19) pandemic, the Taiwan government introduced several supportive tax measures covering a wide range of different aspects. This e-tax alert summarizes the major ones relevant to foreign investors.

Employment-related measures

(e.g. state compensation schemes, training…)

Labor Market Support

Ministry of Labor recently has reviewed and expanded existing measures, and added more new labor market measures.

  • Working hours lower
    • Training program: Subsidy training program up to NTD$18,960
    • Employment plan: Subsidy salary up to NTD$11,000
    • Immediate work plan: Subsidy salary up to NTD$ 12,640
  • Jobless
    • Unemployment benefits: 60% of average monthly insurance salary
    • Tuition subsidy for unemployed children: Subsidy tuition high school up to NTD$6,000/ university or college up to NTD$24,000
  • Corporate
    • Subsidy for working environment improvement: Subsidy process safety and health equipment improvement up to NTD$2 million
    • Worker life balance: Subsidy caregivers hourly wages up to NTD$200,000
    • Defer labor insurance premium and pension payment: payment deferral without penalty
    • Training program: Subsidy training program up to NTD$3 million

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Financial Relief

Three Ways to Help from Public Banks

1. Policy Lending Package: Support SMEs funding to operate business.

2. Loan Extension: Companies or individuals can apply to defer principal repayment or extend loan.

3. Credit card payment deferral: Individuals can apply to defer card payment without penalty and interest.

The measures of reducing interest rate from public banks

  • Residential Loan (For all loans): 0.25% lower since 2020/9/30
  • Consuming Loan (For all loans): 0.25% lower since 2020/9/30 (including credit card, unsecured loan, car loan)

Rental concession/adjustment

  • Rent payment deferral for National property: The users of national property who are affected by epidemic can defer rent payment until the end of 2020.
  • Rent/royalty payment deferral and extension of construction and operation  in PPPIP: The private institutions for promotion of private participation in infrastructure projects (PPPIP), which are impacted by epidemic can apply to defer rent/royalty payment or install payment, and extend the period of construction and operation.

Two funding packages from commercial banks

  • NTD$100 billion package (For all affected business)
    • NTD$10 billion project
    • Bank lending NTD$100 billion
    • LTV ratio 80%~100%
  • Interest subsidy package (For affected SMEs only)
    • Extended loan
    • Business loan
    • Stimulus loan

The measures of commercial banks funding packages


NTD$100 billion

Interest subsidy

(Guarantee fee free)

Interest rate


Extended Loan


Guarantee Percentage


1 year

Up to NTD$220,000

(per application)

Business loan
(Salary & rent only)
(NOT layoff)

Guarantee Percentage



6 months

Up to NTD$55,000

(per application)

Stimulus loan

Guarantee Percentage 80%~90%


1 year

Up to NTD$220,000

(per application)

Customs Measures

Ban on export of mask

  • Until April 30, 2020* , the exportation of mask products under CCC 66307.90.50.19-7 (Other masks, filtering efficiency 94% or more, of textile materials) and CCC 6307.90.50.29-5  (Other masks, of textile materials) are banned in Taiwan. However, woven or knitted masks without filter of textile materials under CCC 6307.90.50.10-6 and CCC 6307.90.50.20- 4, gas masks for epidemic prevention and replaceable filters under tariff heading of 9020, sponge masks under tariff heading of 3926 and paper masks under tariff heading of 4818 are not subject to the export prohibition.

* Such ban may be further extended depending on the current COVID-19 situation in Taiwan.

Export control on fever thermometers

  • From March 4 to March 31, 2020, the fever thermometers products under CCC 9025.19.90.10-1 (including infrared non-contact forehead temperature gun, contact forehead temperature gun, ear temperature gun, electronic thermometer, infrared temperature thermograph, etc.) could not be exported from Taiwan without the approval issued by the Taiwan Bureau of Foreign Trade of the Ministry of Economic Affairs.

Temporary adjustment rate on the importation of mask and undenatured alcohol concentration above 90%

From February 27 to May 26, 2020, importation of mask and undenatured alcohol concentration above 90% could be subject to the temporary adjustment rates.

  • For the raw material of medicinal alcohol under CCC 2270.10.90.22-0 (Other undenatured ethyl alcohol of an alcoholic strength by volume exceeding 90% vol), the temporary adjustment rate 10% could be applied if the goods is used for the production of medicinal alcohol, and the approvals issued by the Ministry of Economy Affairs and Ministry of Health and Welfare are obtained. However, if the goods would be used for other purposes (e.g. for production of wine or industrial alcohol), the original duty rate of 20% should still be applied.
  • The import duty rate of “textile materials production mask” under CCC 6307.90.50 mainly includes the N95 mask and general medical and surgical masks are temporarily adjusted from 7.5% to 0%.

*Please note that above-mentioned CCC code is the Standard Classification of Commodities code used in Taiwan for import declaration purpose. The first 6 digits of the CCC code are identical to the HS Code.

Recovery Plan Overview

  • Recovery plan : Triple Stimulus Voucher Program
  • Budget : 51.1 billion TWD
  • Announcement : June 22th 2020
  • Main orientations : Retail and Service Industry

Main measures

Triple Stimulus Voucher Program

The Taiwan government budgeted 51.1 billion TWD for its “Tripe Stimulus Voucher Program” aiming at stimulating the local economy following COVID-19.

Key Measures

The program allows Taiwanese citizens and their foreign spouses to purchase spending voucher with a total face value of NTD3,000 for the price of NTD1,000.  The voucher can be used for all local spending except for the followings:

  • Payment of water and electricity bill;
  • Payment of principal, interest, credit card balance and other service charges on borrowings from bank and financial institution;
  • Acquiring shares, corporate bonds, options, insurance and other financial products
  • Payment of government penalties, levies, taxes, social insurance contributions and other statutory obligations;
  • Purchasing cigarettes, goods (or service) vouchers and other pre-paid credit;

Sectors/Industries/Areas affected

  • Mainly retail and service industry, as well as other business sectors

Contact us

Tax: Ellen C.L. Ting – eting@kpmg.com.tw
Restructuring: Janice Lai – janicelai@kpmg.com.tw
Legal: Alan T.C. Jih – ajih@kpmg.com.tw