Who Says Tax Incentives in China Are Dead?

Well . . . Maybe not that China . . .

In a push to better compete with China's ports and to reverse the declining volume in Taiwan's ports, the Council for Economic Planning and Development of Taiwan is proposing significant tax incentives to foreign companies that establish logistics and distribution centers in Taiwan.

The proposed incentives are:

1. business income tax exemption on exports;
2. business income tax exemption on domestic sales limited to 10% of total revenue;
3. faster customs clearance; and
4. lower domestic employment requirements.

Establishing your HQ in Taiwan could lead to even bigger tax incentives.

I can't help but question the scope of impact of this proposed legislation. I think the global impact will be limited. But with the recent opening of direct transportation between Taiwan and mainland China, these incentives could have a significant impact on businesses focusing on regional distribution and logistics between Taiwan and the mainland.