G/SCM/N/372/TPKM  
1 June 2021 
(21-4543) Page: 1/20 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN ,  
PENGHU , KINMEN AND MATSU 
The following notification, dated and received on 27 May 2021 , is being circulated at the request of 
the delegation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
 
_______________  
 
 
I. AGRICULTURE  ................................ ................................ ................................ .........  2 
A. SUPPORT FOR RICE  ................................ ................................ ................................ . 2 
B. SUPPORT FOR DIVERSIFIED CROPS  ................................ ................................ ........  3 
C. SUPPORT FOR SUGAR  ................................ ................................ ..............................  4 
D. INTEREST SUBSIDY  ................................ ................................ ................................ . 5 
II. FISHERIES  ................................ ................................ ................................ ..............  6 
A. FISHING VESSELS BUY -BACK PROGRAMME  ................................ .............................  6 
B. REWARD FOR CLOSING FISHERY SEASON  ................................ ...............................  7 
C. FISHING VESSELS MARINE INSURANCE REWARD  ................................ ...................  8 
D. PROTECTION AND INDEMNITY INSURANCE FOR FISHING VESSELS OPERATING  
IN THE MARITIME AREA SUBJECT TO THE FISHERIES AGREEMENT BETWEEN THE 
SEPARATE CUSTOM S TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU AND  
JAPAN  ................................ ................................ ................................ ..............................  9 
III. INDUSTRY  ................................ ................................ ................................ .............  10 
A. LOANS - LOANS FOR SMALL AND MEDIUM -SIZED ENTERPRISES (SMES)  ............... 10 
1. Specific and urgent financing and loans intended for recovery plans from  
damage caused by disasters  ................................ ................................ ..........................  10 
2. Medium - and long-term loans for product marketing and loans for overseas 
investment and construction projects  ................................ ................................ ............  11 
B. DUTY AND TAX EXEMPTIONS GRANTED TO ENTERPRISES LOCATED WITHIN A 
DESIGNATED ZONE  ................................ ................................ ................................ ......... 12 
1. Duty and tax exemptions for high -technology industries  ................................ ...... 12 
2. Duty and tax exemptions for in -zone enterprises  ................................ ..................  13 
C. SUBSIDIES FOR THE ESTABLISHMENT AND OPERATION COSTS OF PETROLEUM 
FACILITIES, AND PRODUCTS CONSUMPTION COSTS IN THE REMOTE AREAS , 
ABORIGINAL AREAS AND ISOLATED ISLAND AREAS  ................................ ....................... 15 G/SCM/N/372/TPKM  
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  IV. RESEARCH AND DEVELOPMENT  ................................ ................................ .............  16 
A. FUNDS GRANTED FOR DEVELOPMENT OF NEW OUTSTANDING PRODUCTS  ............. 16 
B. FUNDS GRANTED FOR PROMOTING DEVELOPMENT OF INDUSTRIAL  
TECHNOLOGY  ................................ ................................ ................................ .................. 17 
C. FUND GRANTED FOR ENCOURAGIN G EXPLORATION AND DEVELOPMENT OF OIL 
AND NATURAL GAS RESERVES  ................................ ................................ ........................ 19 
I. AGRICULTURE  
A. SUPPORT FOR RICE  
1. Title of the programme  
Support for rice.  
2. Period covered by the notification  
2018-2019. 
3. Policy objective and/or purpose  
The policy objectives are to ensure the security of the food supply by balancing supply and demand 
for rice, and to stabilize rice prices for the maintenance of farmers' income.  
4. Background and respons ible authorities  
a. Laws and regulation s: Agriculture Development Act.  
 Food Administration Act.  
b. Responsible authorit ies: Council of Agriculture.  
5. Form of the subsidy/to whom and how the subsidy is provided  
There are three types of rice purchase s - planned purchase, supplementary purchase and additional 
purchase. The planned purchase is made at guaranteed prices  which  are determined by taking into 
account production costs. The prices are set at NT$ 26 per kilogram for Japonica -type rice , and NT$25 
for Indica -type rice and glutinous rice. The quantity of the planned purchase is limited to  2,000 kg 
per hectare for the first crop and 1, 500 kg for the second crop. Supplementary rice purchase prices 
are set at NT$ 23 per kilogram for Japonica -type rice , and NT$22 for Indica -type rice and glutinous 
rice. The quantity of the supplementary purchase is limited to 1,200 kg per hectare for the first crop 
and 800 kg for the second crop. The prices for additional purchase s are set at NT$ 21.6 per kilogram 
for Japonic a-type rice , and NT$ 20.6 for Indica -type rice and glutinous rice. The quantity of the 
additional purchase is limited to 3,000 kg per hectare for the first crop and 2, 400 kg per hectare for 
the second crop.  
Planned, supplementary and additional rice purchas es are made only for  the farmers who produce 
rice in paddy fields. Those who produce rice in the upland areas, are only eligible for supplementary 
and additional purchases. Farmers are free to decide whether they want to sell products to the 
government or not. 
6. Amount of the subsidy  
NT$960 million and NT$ 1,069  million for 2018 and 2019, respectively.  
7. Duration of the subsidy and/or any other time -limits attached to it  
The duration of the subsidy is not specified.  G/SCM/N/372/TPKM  
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  8. Statistical data  
 Unit: 1,000 MT  
Item  Year Production  Consumption  Import  Export  
Rice 2018 1561.6  1,298.4  127.5  74.5 
2019 1428.3  1,295.4  139.7  112.5  
Note:  The data in above table have converted to brown rice, and  are sourced from "Food Supply and 
Utilization Yearbook" published by the Council of Agriculture.  
B. SUPPORT FOR DIVERSIFIED CROPS  
1. Title of the programme  
Support for diversified crops.  
2. Period covered by the notification  
2018-2019. 
3. Policy objective and/or purpose  
The policy objectives are to facilitate the adjustment of farmland utilization and to strengthen the 
farmland environmental conservation plan for sustainable use of farmland as the structure of 
agricultural production undergoes adjustment.  
4. Background  and responsible authorities  
a. Laws and regulation s: Agriculture Development Act.  
b. Responsible authorit ies: Council of Agriculture.  
5. Form of the subsidy/to whom and how the subsidy is provided  
(1) Diversion payment:  
The diversion payment is granted to  those farmers  who follow the diversion programme from rice 
production to the production of diversion crops and adhere to any of the following cases : 
a. Growing rice in the base year (1994 -2003); or,  
b. Growing guaranteed price purchase crops of feed corn, sorgh um or sugarcane in the base 
year; or,  
c. Registering as set -aside or diversion under "Rice Production and Rice Field Diversion 
Projects" in the base year.  
Diversi fied crops are selected according to policy objective and domestic conditions  for such crops 
as feed corn, soybean, forage crops, wheat, sugarcane and other specialty local crops.  Diversion 
payments are made at NT$ 15,000-55,000  per hectare . 
6. Amount of the subsidy  
NT$4,191  million and NT$ 4,373  million for 2018 and 2019, respectively.  
7. Duration of the subsidy and/or any other time -limits attached to it  
The duration of the subsidy is not specified.  G/SCM/N/372/TPKM  
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  8. Trade effect s or related statistical data  
a. Trade effects:  
After the three stages of the rice diversion programme and the set -aside programme  had been 
implemented, the acreage planted in rice dropped  from 645,855 hectares to 270,068  hectares  for a 
decrease of 58.2%, from 1983 (the year prior to the implementation of the projects) to 2019. The 
production of rice also fell from 2.48 million tons to 1.56 million tons  for a decline of 37.1%. The 
quantity of rice purchased by the government was dropped  from 1.1 million tons to  0.57 million tons  
for a decrease of 48.2%. Measures relating to sweet potatoes, peanuts, vegetable, forage and other 
miscellaneous crops contributed to reductions in the production of rice.  
b. Related statistical data:  
Subsidy  for diversified crops in 2018  and 2019  
 Unit: NT$ 1,000 
Products  2018  2019  
Feed Corn 598,580  839,610  
Vegetables  - - 
Forage Crops  536,270 551,540  
Other Crops  3,056,500  2,982,330  
Total 4,191,350  4,373,480  
C. SUPPORT FOR SUGAR  
1. Title of the subsidy programme  
Support for sugar.  
2. Period covered by the notification  
Crop years 2019-2020. 
3. Policy objective and/or purpose  
The purpose of the programme is to develop the sugar industry in cooperation with the farmers.  
4. Background and responsible authorities  
a. Laws and regulation s: Regulation for the Sugarcane Planting Contract.  
b. Authorities: TSC 
  Ministry of Economic Affairs.  
5. Form of the subsidy/to whom and how the subsidy is provided  
(1) Guaranteed purchase:  
TSC made contracts with farmers for the purchase of sugarcane and sugar sharing. The sugarcane 
farmers obtain 55% of the sugar made from sugarcane. If the domestic selling price of sugar is 
higher than the prepaid contract price, the sugarcane farmers are paid  the domestic selling price. If 
the domestic selling price is lower than the prepaid contract price, the farmers are paid the prepaid 
contract price. The contract price is set after taking the domestic selling price and the marketing 
costs into account. It  has been frozen since 1990.  
(2) Other grants:  
The TSC provides grants to sugarcane farmers such as interest subsidy for loans for the purchase of 
inputs, insurance premium s for sugarcane farms, fees for pest and disease control, inspection fees 
for sugar brix, and others.  G/SCM/N/372/TPKM  
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  6. Amount of the subsidy  
NT$62.03  million and NT$ 50.23  million for the fiscal years 2019 and 2020, respectively . 
7. Duration of the subsidy and/or any other time -limits attached to it  
The duration of the subsidy is not specified.  
8. Statistical data  
 Unit: 1,000 MT  
Item  Year Production  Consumption  Import  Export  
Raw Sugar  2019 42.27  558.1  660.5  0 
2020 49.22  552.2  594.0  0 
D. INTEREST SUBSIDY  
1. Title of the subsidy programme  
The policy -oriented special agricultural loan.  
2. Period covered by the notification  
2018-2019. 
3. Policy objective and/or purpose  
The overall objective is to assist farmers and businesses in agricultural industries to raise the funds 
needed for them to be able to operate smoothly. This plan was devised to help them update their 
equipment, improve developmental skills and innovation, increase the added -value of their products, 
strengthen product sales , and enhance their competitiveness. In addition, the plan help s farmers 
who are affected by natural disasters to rebuild their homes and their livelihoods, thus allowing them 
to maintain their standard of living . 
4. Background and responsible authorities  
a. Laws and regulations:  Agriculture Development Act, Agriculture Finance Act,  
     Regulations of the Agricultural Development Fund  
b. Authorities:    Council of Agriculture.  
5. Form of the subsidy/to  whom and how the subsidy is provided  
Preferential  interest rate loans: the loan capital is provided by credit departments of farmers' 
associations and fishermen's associations or the Agricultural Bank. The source of finance for the 
interest subsid y is the  Agricultural Development Fund.  
6. To whom and how assistance is provided  
a. These preferential interest rate loans are available to all farmers and fishermen, and are 
not limited to a specific industry or enterprise of agriculture.  
b. Different ceilings are set fo r different types of loans. Each loan application is subject to 
the given loan ceiling. The amount of loan granted is decided by the bank, based on the 
financial situation of the applicant.  
7. Amount  of the subsidy  
The amount of interest subsidy was NT$1,060  million and NT$998 million for the fiscal years  2018 
and 2019, respectively . G/SCM/N/372/TPKM  
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  8. Duration  
The duration of the subsidy is not clearly specified . 
9. Trade effects  or related statistical data  
a. Trade effects:  
The programme is mainly used to promote the upgrading of t he industry. Given the scope and nature 
of the programme, it is not possible to determine what, if any, trade effects may result directly from 
this programme.  
b. Related statistical data:  
Interest subsidy for loans granted in 2018  and 2019  
 Unit: NT$ 1,000 
Name of Project  2018  2019  
Loans to expand the family farm; to support land purchases by farmers  133,961 135,916 
Loans for farm machinery  112,369 118,432 
Loans for natural agricultural disasters  125,811 128,550  
Loans for accelerating rural construction  687,983  615,163  
Total 1,060,124  998,061  
Note:  Loans for accelerating rural construction include such items as:  
1. Loans in the agricultural food industry to provide guidance and assistance to management.  
2. Loans in the livestock and poultry industry to improve management efficiency.  
3. Loans to farmers ’ management improvement and agriculture production and marketin g groups.  
4. Preferential loans extended to those businesses that move into the agricultural technology park.  
II. FISHERIES  
A. FISHING VESSELS BUY -BACK PROGRAMME  
1. Title of the programme  
Fishing Vessels Buy -back Program.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose   
Due to severe overfishing worldwide, the U nited Nations (UN)  has been urgently calling on nations 
to reduce their fishing capacities. This programme seeks to alleviate pressures on the fishery 
resour ces and ensure their sustainability.   
4. Background and responsible authorities  
a. Laws and regulation s: 
(1) Directions on Buying Back and Processing Fishing Vessels and Rafts in 201 9.  
(2) Directions on Buying Back and Processing Fishing Vessels and Rafts in 20 20. 
b. Authorities: Fisheries Agency, Council of Agriculture.  
5. Form 
Grant.  G/SCM/N/372/TPKM  
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  6. To whom and how assistance is provided   
a. Beneficiaries: Owners of all varieties of fishing vessels with valid fis hing licences, including 
recreational fishing vessels.  
b. Content:  
1. The following is the buy -back amount for fishing vessels, calculated and accumulated 
in 2019-2020: 
- NT$50,000 for each gross ton of the 1st to 5th ton;  
- NT$40,000 for each gross ton of the 6th to 10th ton;  
- NT$30,000 for each gross ton of the 11th to 20th ton;  
- NT$25,000 for each gross ton of the 21st to 50th ton;  
- NT$20,000 for each gross ton of the 51st to 100th ton;  
- NT$18,000 for each gross ton ove r 100 tons; with the maximum  amount for each 
eligible vessel being NT$7.9 million.  
2. Since 2008, the buy -back of fishing rafts have been  calculated according to the length 
of raft, the pipe diameter and the power of main engine.  
7. Amount   
Funds spent on bu ying back fishing vessels and rafts in 2019 totalled NT$ 40.53  million; funds spent 
in 2020 totalled NT$ 36.14 million.  
8. Duration   
2019-2020  
9. Trade effects or related statistical data  
N/A. 
B. REWARD FOR CLOSING FISHERY SEASON  
1. Title of the programme  
Reward for Closing Fishery Season.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose  
Due to the problem of overfishing globally , the UN is calling on nations to reduce their catches. This 
programme seeks to alleviate pressures on fishery resources and ensure their sustainability.  
4. Background and responsible  authorities  
a. Laws and regulation s: Directions for Voluntary Fishing Suspense . 
b. Authorit ies:   Fisheries Agency, Council of Agriculture.  
5. Form 
Grant.  G/SCM/N/372/TPKM  
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  6. To whom and how assistance is p rovided  
Any fishing vessels with valid fishing licences that comply  with the related regulations of closing 
fishery except recreational fishing charter boats.  
7. Amount  
The budget for the programme totalled NT$ 359.93  million in 2019 and NT$ 391.30  million in 2020. 
8. Duration  
The d uration of the subsidy is not clearly specified.  
9. Trade effects or related statistical data  
N/A. 
C. FISHING VESSELS MARINE INSURANCE REWARD  
1. Title of the programme  
Fishing Vessels Marine Insurance Reward.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose  
Insure fishing vessels against marine disasters.  
4. Background and responsible authorities  
a. Laws and regulation s: Regulation s for the Insurance Reward for Owners of Fishing Vessels.  
b. Authorit ies: Fisherie s Agency, Council of Agriculture.  
5. Form 
Grant.  
6. To whom and how assistance is provided  
a. Beneficiaries: Owners of fishing vessels  
b. Content: The programme provides grants to cover a portion of the insurance costs for 
fishing vessels if damaged at sea.  
7. Amount  
The budget for the programme totalled NT$ 43.43  million for 2019, NT$ 53 million for 2020.  
8. Duration  
On-going since 1987.  
9. Trade effects or related statistical data  
N/A. G/SCM/N/372/TPKM  
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  D. PROTECTION AND INDEMNITY INSURANCE FOR FISHING VESSELS OPERATING IN 
THE MARITIME AREA SUBJECT TO THE FISHERIES AGREEMENT BETWEEN THE 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU AND 
JAPAN  
1. Title of the programme  
Direction s on Liability Insurance Subsidies for Owner s of Motor -based Fishing Vessels Proceeding to  
the Maritime Area Subject to the Fisheries Agreement between the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu and Japan  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or pu rpose  
To establish the insurance system of providing subsidies for Protection and Indemnity Insurance for 
Fishing Vessels operating in the Maritime Area Subject to the Fisheries Agreement between the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and  Matsu  and Japan.  
4. Background and responsible authorities  
a. Laws and regulation s: Direction s on Liability Insurance Subsidies for Owner s of Motor -
based Fishing Vessels Proceeding to  the Maritime Area Subject to the Fisheries Agreement 
between the Separate Cus toms Territory of Taiwan, Penghu, Kinmen and Matsu  and Japan.  
b. Authorit ies: Fisheries Agency, Council of Agriculture.  
5. Form 
Grant.  
6. To whom and how assistance is provided  
Subsidies are provided for motor-based fishing vessels operating in the maritime area subject to the 
Fisheries Agreement  between the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
and Japan . 
7. Amount  
N/A 
8. Duration  
On-going since 2 May 2017.  
9. Trade effects or related statistical data  
N/A. G/SCM/N/372/TPKM  
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  III. INDUSTRY  
A. LOANS - LOANS FOR SMALL AND MEDIUM -SIZED ENTERPRISES (SMES)  
1. Specific and urgent financing and loans intended for recovery plans from damage 
caused by disasters  
1. Title of the programme  
Specific and urgent financing and loans intended for recovery plans from damage caused by  
disasters.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose  
Qualified SMEs are entitled to apply for financing and loans that are provided to help enterprises 
restructure during replacement of machinery and purchas e of new automated equipment.  
4. Background and responsible authorities  
a. Laws and regulation s:  
Statute for Development of Small and Medium -Sized Enterprises (Articles 9, 15, 17 and 18).  
Procedure s for Income -Expenditure Safeguarding and Utilization of the SME Development Fund.  
The SME Development Fund was established according to Article 9 of the Statute for Development 
of Small and Medium -Sized Enterprises.  
b. Authorit ies: Ministry of Eco nomic Affairs.  
Note: The cumulative amount reached by the end of fiscal year 20 20 for the SME Development Fund 
was NT$3.07 billion. 
5. Form 
Financing and loan.  
6. To whom and how assistance is provided  
All enterprises which meet the "Standards for Identifying a Small and Medium -Sized Enterprise" are 
eligible to apply.  
Loan applications are approved by commercial banks.  The ceiling interest rate is 1% plus a flat rate 
of the 2 -year postal fixed savings r ate.  
7. Amount  
No loan applications were submitted in the fiscal year 2019 -2020.   
8. Duration  
The above -mentioned programme loaned by the SME Development Fund was scheduled to be 
terminated after 2009 . However, in order to  assist SMEs with accessing funding for recovery from 
disastrous damage, we decided to continue this programme.  G/SCM/N/372/TPKM  
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  9. Trade effects or related statistical data  
Given the fact that 98% of enterprises are SMEs, it is difficult to estimate the trade effects of thes e 
programmes.  
2. Medium  - and long-term loans for product marketing and loans for overseas 
investment and construction projects  
1. Title of the programme  
Medium  - and long -term loans for product marketing, and loans for overseas investment and 
construction proj ects.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and or/purpose  
These programmes are implemented for the purpose of providing SMEs with financial assistance in 
exploring new markets for their machinery and equipment, in investing and establishing plants in 
foreign countries, and in undertaking overseas contracts for construction projects.  
4. Background and  responsible authorities  
a. Laws and regulation s:  
Statute for Development of Small and Medium -Sized Enterprises (Articles 9, 15, and  16).  
Procedure s for Income -Expenditure, Safeguarding and Utilization of the SME Development Fund.  
b. Authorities: Ministry of Economic Affairs.  
5. Form 
Loan.  
6. To whom and how assistance is provided  
a. All enterprises which meet the "Standards for Identifying a Small and Medium -Sized 
Enterprise" are eligible for application.  
b. The approval of loan applications is performed by commercial banks. However, the capital 
needed is provided entirely by the SME Development Fund.  
7. Amount  
Loaned by the SME Development Fund.  
FY 2019-2020: NT$1 billion.  
8. Duration of subsidy  
The programmes are not subject to any fixed completion date.  
9. Trade effects or related statistical data  
Given the fact that 98% of enterprises are SMEs, it is difficult to estimate the trade effects of these 
programmes.  G/SCM/N/372/TPKM  
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  B. DUTY AND TAX EXEMPTIONS GRANTED TO ENTERPRISES LOCATED WITHIN A 
DESIGNATED ZONE  
1. Duty and tax exemptions for high -technology industries  
1. Title of the programme  
Duty and tax exemptions for high -technology industries.  
2. Period covered by the notification  
Fiscal year 2019-2020. 
3. Policy objective and/or purpose  
This programme is implemented with a view to stimulating the research and innovation of industrial 
technology and to promote the development of advanced technology. The "Science Park"(the Park) 
has been established by introducing sophisticated industries a nd personnel with advanced 
technological backgrounds into a designated zone.  
4. Background and responsible authorities  
a. Law and regulation:  
 Act for Establishment and Administration of Science Parks  (Article  23); 
 Enforcement Rules of Act for Establishment a nd Administration of Science Parks  (Article  16).  
b. Authorities:  The Park is managed by the Science Park Bureau;  
   The policy -making body is the Ministry of Science and Technology . 
5. Form 
The subsidy programme will be implemented in the form of dut ies and tax exemptions.  
6. To whom and how assistance is provided  
a. Effective from 1 January 2000 , the merged science -based enterprise in accordance with 
domestic Company Act or surviving or new science -based enterprises after mergers shall 
succeed the tax benefi ts originally enjoyed by the dissolving science -based enterprise 
before mergers, which are not yet terminated nor fully offset. As for succeeding the 
exemption of profit -seeking income tax as an investment incentive from the dissolving 
science -based enterp rises, the surviving science -based enterprises in the scope of science -
based industries under the merger/consolidation projects shall continue to produce the 
identical products produced or the identical services provided by the dissolving science -
based ent erprises and such tax benefits shall apply only to the portion of income derived 
from products or services independently produced or provided by the original dissolving 
science -based enterprises. If the tax is exempted in the manner of investment offset or  
deduction, such tax exemption  shall apply only to the payable tax portion of the surviving 
or new science -based enterprises after mergers of the dissolving science -based 
enterprises. (Article 21).  
b. All Park enterprises are entitled to the following exempti ons:  
Customs duties, commodity tax, and business tax on imported machinery and equipment, 
raw materials, commodities, fuel, and semi -finished products .  
Note: "Park enterprise" refers to a science -based enterprises  and the business enterprise that have 
been approved for establishment in the park to provide operational, managerial, and technical 
services for  science -based enterprises.   G/SCM/N/372/TPKM  
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  Research institute s or incubation centers  may also apply for establishment and ope ration in the Park.  
The enterprises enrolled by the incubation centers shall be limited to conducting R&D activities and 
venture business and may not conduct mass production. The residency period shall last three years. 
Application for an extension shall be made before the term expires. No enterprises shall stay beyond 
six years.  
7. Amount  
2019-2020 Business Tax Exemption for all Imports  
 Unit: NT$ million  
Year Total Import Value  Total Amount of Business  
Tax Exemption  
2019 742,325  37,116  
2020 891,639  44,582  
8. Duration  
There is no time limit attached to the programme.  
9. Trade effects or related statistical data  
 Unit: NT$ million  
Year 2019  2020  
Number of approved park enterprises  
(accumulated numbers ) 852 885 
Total import value  742,325  891,639  
Total export value  2,066,913  2,401,606  
In light of the scope and nature of the se programmes, it is not yet possible to determine what, if 
any, trade effects may result.  
2. Duty and tax exemptions for in -zone enterprises  
1. Title of the programme  
Duty and tax exemptions for in -zone enterprises.  
2. Period covered by the notification  
Fiscal  years 2019-2020. 
3. Policy objective and/or purpose  
Export Processing Zones have been established for the purpose of promoting investment and 
international trade.  
4. Background and responsible authorities  
a. Laws and regulation s: 
 Statute for Establishment and Administration of Export Processing Zones (the EPZ  Law), 
(Articles 1, 5 and 13).  
 Measures for the Screening of Application for Establishment of Enterprises in Export Processing 
Zones.  
 Categories of Industr ies eligible to be established in Export Processing Zones.  
b. Authorities:  
 Export Processing Zones a re managed by the Export Processing Zone Administration.  
 The policy -making body is the Ministry of Economic Affairs.  G/SCM/N/372/TPKM  
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  The task for reviewing the eligibility of enterprises established in Export Processing Zones shall 
be undertaken by the Export Processin g Zone Administration together with the other 
government agencies involved.  
Note: In -zone enterprises include industries authorized to be engaged in manufacturing, processing, 
assembly, research and development, trade, consulting, technical services, ware housing, 
transportation, loading and unloading, packing, repairs and other related businesses approved by 
the Ministry of Economic Affairs for Export Processing Zones.  
5. Form 
Duties and tax exemptions.  
6. To whom and how assistance is provided  
All in-zone ent erprise industries are entitled to the following exemptions:  
a. Import duty, commodity tax and business tax on imported machinery and equipment.  
b. Import duty, commodity tax, and business tax on imported raw and consumption 
materials, fuels, semi -finished prod ucts, samples, and finished products for transhipment 
by traders and warehousing operators.  
c. Deed tax when acquiring a new standard plant building in the Export Processing Zone or 
acquiring a building from the Export Processing Zone Administration.  
d. It sho uld be noted that within five years of import ation, all machinery and equipment are 
not entitled to duty and tax exemptions when shipped to leviable areas from Export 
Processing Zones. Moreover, products manufactured by in -zone enterprises shall be 
subject  to customs duties, commodity taxes and business taxes when they are shipped to 
leviable areas. While customs duties would be applied on the basis of ex -factory prices 
minus value -added resulting from manufacturing or processing activities in the EPZs, oth er 
taxes would be based on the ex -factory price.  
7. Amount  
2019-2020 Business Tax Exemption for all Imports  
Unit: NT$ million  
Year Total Import Value  Total Amount of Business  
Tax Exemption  
2019  252,023  12,601  
2020  262,607  13,130  
8. Duration  
There is no time limit attached to the programme.  
9. Trade effects or related statistical data  
 Unit: NT$ million  
Year 2019  2020  
Number of approved park enterprises  
(accumulated numbers ) 669 697 
Total import value  252,023  262,607  
Total export value  419,370  423,826  
In light of  the scope and nature of these programmes, it is not yet possible to determine what, if 
any, trade effects may result.  G/SCM/N/372/TPKM  
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  C. SUBSIDIES FOR THE ESTABLISHMENT AND OPERATION COSTS OF PETROLEUM 
FACILITIES, AND PRODUCTS CONSUMPTION COSTS IN THE REMOTE AREAS, 
ABORIGIN AL AREAS AND ISOLATED ISLAND AREAS  
1. Title of the programme  
To subsidize the set up of petroleum facilities in remote, aboriginal and isolated island  areas as well 
as transportation outlays, and offer price subsidies.  
2. Period covered by notification  
Fiscal  years 2019-2020. 
3. Policy objective  
The goals of the subsidy are:  
(1) to ensure a steady and reliable supply of transport fuels  and LPG  in these areas, and  
(2) to maintain fuel prices at levels consistent with the main island.  
4. Background and responsible authorities  
(1) Laws and regulation s:  
Petroleum Administration Act was amended on 4 June 2014. The subsidy regulation was 
promulgated on 31 October and effective on 2 November 2014 . 
(2) Authorit ies: Bureau of Energy, Ministry of Economic Affai rs.  
5. Form 
Grant.  
6. To whom and how the subsidy is provided  
(1) Owners  and/or operators of petroleum facilities in these areas are entitled to apply for the 
following items :  
a. Subsidy for the establishment of petroleum facilities in such areas . 
b. Subsidy for maintenance cost s of petroleum facilities in such areas . 
c. Subsidy to offset the cost of shipping petroleum or LPG to such areas . 
d. Subsidy for extra personnel costs in the operation of petroleum facilities in such areas . 
(2) Subsidy to offset the cost of ship ping household LPG between remote areas, aboriginal areas 
and urban or/and suburban areas.  
7. Amount for the past two years  
Statistics for specific subsidies  
Unit: NT$  thousand  
Title of Subsidy  2019  2020  
Subsidy for the establishment of petroleum facilities in such areas  2,490  0 
Subsidy for maintenance cost s of petroleum facilities in such areas  7,735  6,083  
Subsidy to offset the cost of shipping petroleum or LPG to such areas  157,521  170,562  
Subsidy for extra personnel costs in the operation of petroleum 
facilities in such areas  32,882  32,041  G/SCM/N/372/TPKM  
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  Title of Subsidy  2019  2020  
Subsidy to offset the cost of shipping household LPG between remote 
areas, aboriginal areas and urban or/and suburban areas  54,615  63,412  
Total 255,243  272,098  
8. Duration  
(1) The Program me was initia lized in 2002 , but the household LPG subsidy in aboriginal  areas was 
started on 19 August 2010.  
(2) The subsidies for the remote areas, aboriginal plan areas were started on 2  November  2014.  
(3) Not subject to deadline.  
9. Trade effects or related statistical data  
The Programme is based on the annual budget of the Petroleum Fund. In light of the scope and 
nature of activities that may be financially supported by these subsidies, it is not yet possible to 
determine what, if any, trade effects may eventually result from this  programme.  
IV. RESEARCH AND DEVELOPMENT  
A. FUNDS GRANTED FOR DEVELOPMENT OF NEW OUTSTANDING PRODUCTS  
1. Title of the programme  
a. Grants for development of new leading industries.  
b. Project for subsidizing development of major market -comprehensive products . 
c. Grants for development of innovative applications and services  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose  
In order to encourage research and development of new leading products and upgrade the technical 
capability of the leading industries, the programme grants funds to private enterprises.  
In response to promoting "critical leading edge of product development plan"  and taking into 
consideration the "market applicability" and "technological competitiveness", the Industrial 
Development Bureau of the Ministry of Economic Affairs launched the new special "project for 
subsidizing development of major market -comprehensive pro ducts"  in June 2010 and thereafter.  
To encourage the development of innovative market -oriented trading service model, and guide the 
planning of market assessment, developing the market -oriented innovative business or service 
model through the integration of cross -cutting technology applications or services business 
processes and business model of innovation.  
4. Background and responsible authorities  
a. Laws and regulation s:  
Measures for Assistance in the Development of New Leading Products were prom ulgated on 
26 April 1991 and were superseded by the Subsidy, Reward, and Assistance Regulations for 
Promoting Industry Innovation by the Ministry of Economic Affairs on 24 May 2018.  
b. Authorities: The Industrial Development Bureau, Ministry of Economic Affai rs.  G/SCM/N/372/TPKM  
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  5. Form 
Grant.  
6. To whom and how assistance is provided  
a. Any company incorporated under the Company Law with sound financial standing and 
without ever having a record of refusal or bounced cheque through a domestic bank, may 
apply for the assistance fund re lating to the development of a new leading product. The 
product should possess great market potential and its core technology should surpass the 
current level of domestic industrial technology.  
b. The assistance funds granted are a total of no more than fift y per cent (50%) of the 
amount  of the following expenses incurred exclusively for the development of new leading 
products:  
Costs incurred for full -time research personnel;  
1. Costs of consumable instruments and raw materials;  
2. Costs for use and maintenance of R&D equipment;  
3. Costs for technology transfer.  
4. Travel fees related to the project.  
7. Amount  
a. Since the programme's inception, the cumulative amount of grants stands at 
NT$23,589,057,898  at the end of fiscal year 2020 (fiscal years 1992 -2020). 
b. For the fiscal year 2019 -2020, the amount of grants was NT$2,727,160,000. A breakdown 
of the products involved is shown in below : 
Unit: NT$ thousand  
Name of Project (or Sector)  Grant  Amount  
Grants for development of new leading industries  718,140  
Grants for development of innovative applications and 
services  1,566,082  
Grants for industrial upgrading and transformation  442,938  
Total 2,727,160  
8. Duration  
There is no time -limit attached to the programme.  
9. Trade effects or related statistical data  
It is not yet possible to determine what, if any, trade effects may result from this subsidy 
programme.  
B. FUNDS GRANTED FOR PROMOTING DEVELOPMENT OF INDUSTRIAL TECHNOLOGY  
1. Title of the programme  
Technology Development Programme for Enterprise s. 
2. Period covered by the notification  
2019-2020. G/SCM/N/372/TPKM  
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  3. Policy objective and/or purpose  
The programme's objective is to encourage businesses to engage in the development of 
technological innovations and applications for the purpose of reinforcing domestic enterprises' 
capabilities, especially in the field of research and development.  
4. Background and responsible authorities  
a. Laws and regulation s:  
Regulations of Subsidization for Encouraging Enterprises R&D Activities were promulgated on 
27 November 2002 and were superseded by the Subsidy, Assistance and Reward Regulations for 
Promoting Industry Innovation by the Ministry of Economic Affairs on 24 May 2018.   
b. Authorities: Department of Industrial Technology, Ministry of Economic Affairs.  
5. Form 
Fund assistance for advanced research and development.  
6. How assistance is provided and to whom  
a. Any company established according to the Company Law with sound financial s tanding 
and research and development department that has made significant achievements in the 
past, and which is currently staffed by competent specialists, in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, may apply for this fund to o ffset the costs 
of the following activities:  
1. Research and development of advanced technologies  that may be aptly characterized as vital 
and innovative in the long term.   
2. Technologies research and development that enhance vertical or horizontal integ ration  and 
drive the forming of industry chain ecosystems or clusters.  
3. Establishment of research and development centers in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu that create innovative technologies and services.  
4. Develo pment of innovative or integrative manufacturing technology by small and medium -
sized businesses.  
b. The assistance funds to be granted shall not exceed 50% of the total amount of the 
following expenses:  
1. Costs incurred for full -time and/or part -time research personnel;  
2. Costs of consumable instruments and raw materials;  
3. Costs for use and maintenance of R&D equipment;  
4. Costs for technology transfer; and  
5. Domestic travel expenses.  
6. Rewards for patent application.  
7. Amount  
The total amount of grants in the fiscal year 2019-2020 was NT$ 4,055,027 ,000.  
8. Duration  
There is no time -limit attached to the programme.  
9. Trade effects or related statistical data  
It is not yet possible to determine what, if any, trade effects may result from this subsidy 
programme.  G/SCM/N/372/TPKM  
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  C. FUND GRANTED FOR ENCOURAGING EXPLORATION AND DEVELOPMENT OF OIL AND 
NATURAL GAS RESERVES  
1. Title of the programme  
Fund Granted for Encouraging Exploratio n and Development of Oil and Natural Gas Reserves.  
2. Period covered by notification  
2019-2020. 
3. Policy objective and/or purpose  
The policy objectives of the programme are to secure oil supply and stabilize the domestic oil market.  
4. Background and responsible authorities  
a. Laws and regulation s: Petroleum Administration Act.  
b. Responsible authorit ies: Bureau of Energy, Ministry of Economic Affairs.  
5. Form 
Grant.  
6. How assistance is provided and to whom  
Companies limited by shares incorporated under the Company Law that engage in the exploration 
and development of oil and natural gas reserves are eligible for the grant.  
The grant is used only in support of the following activities:  
(1) The implementation of geological, geophysical, and/or geochemi cal surveys and research 
necessary for the exploration of oil and natural gas.  
(2) Drilling for the exploration and/or development of oil and/or natural gas reserves.  
(3) Any other necessary pertinent activities that have been reviewed and approved by the 
author ities.  
The total subsidy allocated for an applicant's exploration proposal is not to exceed 50% of the budget 
in the applicant's proposal. The total subsidy allocated for an applicant's development proposal is 
not to exceed 12% of the budget in the applic ant's proposal.  
While the proposal is successful, the whole grant and annual interest shall be amortized within 
1-15 years.  
In accordance with the approved month proposal, the annual interest rate is 3% risk plus a base 
rate from the Central Bank ’s New Loans & Interest Rates by five Leading Banks.  
7. Amount  
 Unit: NT$  thousand  
Year 2019 2020 
Total  0 10,000  
8. Duration  
The programme was initiated in 2002. It is not subject to any fixed completion date.  G/SCM/N/372/TPKM  
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  9. Trade effects or related statistical data  
Given the scope and nature of the activities that may be financially supported by th is subsidy, it is 
not yet possible to determ ine what, if any, trade effects may eventually result from this programme.  
 
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