The Southern Area National Taxation Bureau of the Ministry of Finance, stated that in order to encourage companies to invest resources in R&D, transformation, and innovation activities, and to accelerate intelligentization, digitalization, and low-carbonization processes to upgrade industrial structure and international competitiveness, in accordance with Article 10 and Article 10-1 of the Statute for Industrial Innovation, expenditures on research and development activities for innovation and investments in brand-new smart machinery for self-use are eligible for benefits. Expenses for the introduction of fifth-generation mobile communication systems, information and communication security products or services, artificial intelligence products or services, and energy-saving and carbon-reducing new hardware, software technologies, or technical services are all eligible for tax credit benefits, provided they meet the specified requirements. However, companies should pay attention to the application deadlines for each incentive measure.
The Bureau explained that if a company wishes to apply for investment tax credits in accordance with the relevant laws and investment tax credit regulations, it should proceed within the following timeframes:
1. For those applicable under Article 10 of the Statute for Industrial Innovation, it should apply from 3 months before the start of the annual profit-making enterprise income tax return filing period to the deadline for filing the return. Taking cases for tax year 2025 as an example, if the annual system is adopted, the original application period was from January 1 to May 31, 2026. However, since May 31 falls on a holiday, the last date of the deadline is postponed to June 1. Please attach relevant regulatory documents (such as the R&D activity recognition application expenditure and the applicable investment tax credit details), and apply for review to the central competent authority.
2. Those applying based on Article 10-1 of the Statute for Industrial Innovation should apply from 4 months before the start of the annual profit-seeking enterprise income tax return filing period to the deadline of the filing period. Taking cases for tax year 2025 as an example, if the annual system is adopted, the original application period was from January 1 to May 31, 2026. However, since May 31 falls on a holiday, the last date of the deadline is postponed to June 1. Please log in to the application system established by the Ministry of Economic Affairs (http://ipd.nat.gov.tw/taxcredit/index.aspx), fill in and upload the required documents in the prescribed format, and complete the online application process.
The Bureau further explained that if a company or limited partnership wishes to apply for the aforementioned investment tax credit, in addition to applying for review from the competent authority of the current project, it must also calculate the tax credit amount when filing the annual profit-making enterprise income tax return, fill out the relevant tax exemption details table in accordance with the format specified in the profit-making enterprise income tax return, and submit the required documents to the tax authorities for processing. If the application is not submitted within the above-mentioned deadline and the tax credit forms are not completely filled out, according to the relevant investment tax credit regulations, there will be no remedial measures and the investment tax credit will not be applicable.
The Bureau would like to remind companies applying for the investment tax credit benefits under the Industrial Innovation Statute to pay attention to the aforementioned application and declaration regulations, submit an application to the central competent authority within the specified time limit, and fill in the declaration according to the format of the tax return when handling the annual income tax final return, in order to fully enjoy the investment tax credit benefits provided by the government.
Press Release Contact: Mr. Chen
Profit-seeking Enterprise Income Tax Division
TEL: 06-2223111 ext.8049