Most Rewarding to Investment
Local Reward Scheme for the Promotion of Private Participation in Public Infrastructure Yilan County Government Administrations Council passed an autonomous law to promote private participation in public infrastructure through various tax incentives. In the future, participation in major county infrastructure projects will be rewarded with land value tax, housing tax and deed tax deductions, in addition to benefits from the central government such as capital support, business income tax and customs deduction. These measures are expected to help attract investment to Yilan and speed up economic development.
According to the autonomous law, BOT, BOO or BTO projects on major public infrastructure matching those listed under Article 4, and reach the investment size and standard of NT$1 billion for tourism and recreational facilities, NT$50 million for worker welfare facilities, NT$3 billion for major industrial facilities, NT$500 million for common conduit work, may file for investment contracts with the county government. The tax exemptions stipulated are as follows: total land value tax exemption for transport and common conduit work during construction and operation; total exemption from other taxes during construction; five-year total exemption from housing tax; all real estates acquired or have Dien Right established for direct use during construction or operation is applicable to a 30% deed tax exemption.
Investment Deduction to Promote Balance Regional Development
According to "Regulations for the Promotion of Industry Upgrades" and "Investment Deduction Scheme for Investors in Township Areas of Scarce Resources and Slow Development, businesses fulfilling the qualifications below may apply for investment deductions.
1.A company or a division established in Yilan township areas (i.e. outside of Yilan City) making a new investment or for expansions
2.An investment amount of NT$25 million or above (excluding land costs) for the use in new machinery, equipment and building purchase.
3.The company must belong to certain sectors: i.e. agricultural, industrial or service.
1.Investment proposals should be filed with the county government within two years after the announcement of the applicable areas on July 1, 2004 (an existing company should include its operation license in the application, a company under establishment should provide a copy of the company name registration application approved by the Division of Commerce).
2.The proposed investment should be completed within three years of the day after the county government agrees to the application in a formal letter.
3.Within six months after the completion of the project, the company can apply to the county government for the appropriate investment deduction certification with documentations proving machinery, equipment and building purchase.
4.When filing its annual business income tax statement with the authorities, the company should include the investment deduction certification and a copy of the operation license for income tax deduction.
A maximum of 20% of the total cost of new machinery, equipment and building purchased for the use of production or operation according to the investment proposal may be deducted from the business income tax of the year of the project's completion. Should the deductible amount exceed that of the income tax, it may be deducted over the next four years.
Key Points in Yilan County's Business and Medical Investment Reward Scheme
The county government created "Key Points in Yilan County's Business and Medical Investment Reward Scheme "In July 2001 to encourage business investment, as described below.
Reward Target: 1. the top ten emerging industries; 2. low pollution industries; 3. international tourist hotels; 4. regional medical institutions with a capacity of more than 300 beds; 5. agricultural bioscience industries investing NT$50 million excluding land spending; 6. businesses qualifying under 1. and 2. making factory expansion investments of over NT$25 million; 7. recreation businesses approved by the central and county government investing over NT$2 billion (excluding land).
Five-year full subsidy for land value tax, housing tax
Two-year land lease subsidy for businesses newly set up in Lize Industrial Zone.
Those needing to import soil for land improvement may do so after obtaining a construction permit.
1.An investment proposal should be delivered to the county government for qualification assessment and application completion.
2.After obtaining the required factory registration certificate and business registration certificate, the applicant should provide copies of those along with any land value tax, housing tax and lease receipts, as well as other proofs of spending and an expense allocation chart in his/her reward money application to the Bureau of Business and Travel before December 10.
Guidelines for the Landscaping and Beautification of Factories and Mines in Yilan County
Guidelines for the Landscaping and Beautification of Factories and Mines in Yilan County were drafted by the county government. In order to lessen negative impacts on the environment, improve air quality in factory and mining areas, enforce the concept of ecology, landscaping and beautification, and truly achieve the goal of creating a green county. Qualified businesses may apply for landscaping work in their surroundings according to the guidelines described.
The factories and mines named in the guidelines refer to those that are registered with the county government and operate legally with the required certificates or licenses. Application procedures follow below.
Applicant: Owner of legally operated factories or mines.
Location: All unused or free areas outside of existing factories and related facilities.
Application Method: Via registered mail with the Bureau of Business and Travel.
Documentation: Two sets of the following documents: application form, copies of factory registration certificate or mine registration certificate and mining license, area plan and photographed views of intended landscaping and beautification spots.
Applicants will be charged a materials fee for the allocated plants by the county government, according to Implementation Regulations on Yilan County's Environment Landscaping Work.
006688 Reward Scheme for Industrial Zone Land Acquisition and Lease
Industrial Zone Land Acquisition and Lease Benefits (known as the 006688 Scheme) stipulated by the Ministry of Economic Affair are applicable for corporations setting up factories in Yilan's Lize Industrial Zone. The scheme and related regulations are explained below.
1.Businesses can enjoy a free lease for the first two years, and 40% off the designated rent for years three and four, 20% off for years five and six, only reverting back to the original rent from year seven.
2.If the business owner purchases the leased land before or at the end of the contract, a maximum of 70% of the total paid rent can be deducted from the final payment for the land.
3.Regarding usage restrictions, the applicant should obtain a construction permit within six months of the date of signing the lease contract and report the beginning of constructions. The applicant
should also obtain a permit and begin operations within 18 months of the signing of the lease
4.The lease deposit is six months, which will be returned without interest at the end of the contract or when the land is purchased.
Liability and Rights of Businesses Stationed in the Science Parks
1.Administration services via a One-Stop Service, including applications for renting standard factories or building factories on rented land, park residence, and children's school admission.
2.Customs, goods tax and business tax exemptions for imported machinery, equipment, materials,
fuel and semi-finished products.
3.May apply for park administration's Innovation Research Award subsidies (a maximum of NT$5
million, or 50% of the project development cost).
4.May participate in professional training courses on offer at nearby academic institutions
commissioned by the park administration (with half the fee subsidized on passing the training
1.An investment guarantee is required for science industries approved of entering the park (0.3% of
the subscribed capital of the approval), which will be returned without interest after the completion
of the investment project.
2.Science industries are required to pay an administration fee based on a percentage of their business revenue (currently set at 0.2%).
3.Approved investment projects in the park must be executed according to the original proposal and completed on schedule. Any changes made to a project must first be approved by the park administration. Discrepancies to the proposal will result in the withdrawal of investment approval.