Extension of applicable period of tax incentives for investment in facilities by SMEs

1. Overview

The applicable period of tax incentives for investment in facilities by small-to-medium sized enterprises.

2. Content

The tax incentives are summarized in the table below:

2013※

2014

2015

2016

Special depreciation

Depreciation 100%

Depreciation 100%

Depreciation 100%

Depreciation 50%

Depreciation 100%

Depreciation 100%

Depreciation 100%

Depreciation 50%

Tax deduction

5%

5%

5%

4%

3%

3%

3%

2%

※Applicable after the effective date of industry competition enhancement laws (20 January 2014).

A company who qualifies can choose either special depreciation or tax deduction whichever is in favor of a larger tax advantage.

3. Who can apply

The tax incentives are available for companies regardless of its size and industry. However, only small-to-medium sized enterprises can apply for the deduction of inhabitant tax and enterprise tax