Forvis Mazars in Taiwan technical update - November 2025
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Forvis Mazars in Taiwan technical update - AOS
Taiwan’s revised SME tax incentives allow enhanced deductions for new hires and wage increases, but careful planning is essential to unlock the benefits.
On December 4, 2024, the Ministry of Finance and the Ministry of Economic Affairs jointly updated its SME salary expense super-deduction rules, offering generous tax incentives for hiring young or senior employees and increasing wages for existing staff. While the potential tax savings are attractive, the rules come with strict eligibility conditions, documentation requirements, and practical risks around headcount, salary caps, and overlapping benefits. This article outlines the key requirements, common pitfalls, and practical steps SMEs should take to maximize the incentives while staying compliant.
