Financial and Technology News

The central government is studying a plan to attract and retain “high-caliber” foreign talent by providing them with preferential tax treatment, National Development Council (NDC) Deputy Minister Kao Shien-quey said on Thursday.

The council has drafted a plan on improving Taiwan’s ability to retain highly talented foreign professionals to address talent shortages and labor outflows, Kao said after giving a report on the plan at a regular Cabinet meeting.

In the plan, the NDC proposed a slew of measures to address problems facing foreigners working in Taiwan, including high individual income tax rates for foreign workers.

According to tax rules in Taiwan, foreign workers who stay in the nation for fewer than 183 days within a taxable year will have their individual income taxed at progressive rates of up to 45 percent.

Taiwan’s personal income tax rates are higher than the 2 to 17 percent workers are subject to in Hong Kong and the maximum 20 percent in Singapore.

The council plans to grant preferential tax treatments to “high-caliber” foreign talent during their first three taxable years in Taiwan.

The details, however, have not been released.

The council also plans to streamline the processing of applications for documents by foreign professionals and the issuance of visas and permits for international students seeking internships in Taiwan.