Taiwan Eyes Tax Incentives to Boost Foreign Talent Acquisition

Proposed Changes Aim to Attract Global Professionals by Adjusting Salary Thresholds

Taiwan is actively exploring measures to enhance its appeal to international professionals, particularly in critical sectors like artificial intelligence. Government officials are considering adjustments to existing tax incentive programs to make them more competitive and attract a wider pool of skilled individuals.

A key area under review is the salary threshold for eligibility in the current tax incentive program. Presently, foreign professionals entering the Taiwanese workforce for the first time and earning an annual salary exceeding a specific amount (currently equivalent to approximately US$90,900) qualify for a 50% tax reduction on income above that threshold for the initial five years of employment. Furthermore, their overseas income is exempt from the calculation of their taxable income within Taiwan.

The proposed adjustments involve potentially lowering this salary threshold, a move inspired by similar policies implemented in other regions known for attracting international talent. This modification aims to broaden the scope of the incentive and make it accessible to a larger number of prospective employees.

The initiative remains in the planning phase. Further discussions with relevant government departments are necessary before a formal amendment to the existing legislation is drafted and submitted for legislative review. The timeline for this process suggests that the proposal could be considered before the end of a specified period.

Beyond tax incentives, Taiwan is pursuing a comprehensive strategy to attract and retain international professionals. This multi-pronged approach incorporates detailed industry analysis to pinpoint key talent needs and the utilization of advanced technological tools to connect with professionals in different geographical locations.

Demonstrating the progress achieved, it's worth noting that by the end of a recent year, a significant number of foreign professionals were contributing to Taiwan's economy, including those who benefited from specialized programs designed to attract highly skilled workers.