Forvis Mazars in Taiwan technical update - January 2026
Forvis Mazars in Taiwan technical update - Jan. 26
The Ministry of Economic Affairs has announced major amendments to Article 10‑1 of the Industrial Innovation Statute, expanding Taiwan’s tax credit regime for smart transformation and low‑carbon development. The updated measures apply from January 1, 2025 to December 31, 2029.
What’s New?
- Two new categories now qualify for tax credits:
• AI products and services (ML, DL, LLMs, NLP, etc.)
• Energy‑saving and carbon‑reduction equipment or systems - Clearer rules for determining order and delivery dates across different acquisition types, reducing ambiguity.
- Annual investment cap increased from NT$1 billion to NT$2 billion (with transitional rules for orders placed before 2025).
Key Improvements
- More precise definitions for order date, delivery date, and delivery deadlines
- Updated documentary requirements (including purchase contracts or proof of ordering decision)
- Transitional rules for mixed 2024–2025 investments
- Clarified tax credit timing based on delivery date, not payment or contract date
Why It Matters
These changes significantly broaden companies’ eligibility for tax incentives related to digital transformation, AI deployment, and carbon‑reduction initiatives. The clearer procedural rules also reduce compliance risk during Corporate Income Tax filing.
For businesses investing in smart machinery, 5G, cybersecurity, AI, or energy‑efficiency upgrades, the revised framework offers enhanced opportunities for tax savings and strategic planning.
