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Taiwan encourages growth of free trade ports
2009/4/7
The Taiwan Cabinet is scheduled to pass the draft revision of the “Statute for the Establishment and Management of Free Trade Port Area” this later this week on April 9, calling the provision of various incentives to encourage the establishment of international logistics and distribution centres in the area, the Taiwan Economic News reported.
The revision aims to encourage the development of international logistics and distribution centres, in order to cope with the new situation following the inauguration of the direct cross-Taiwan Strait transportation link.
Such centres will be dedicated to logistics, warehousing, processing and assembly, and repair and will be added to the original major functions of free trade ports, namely transhipment, logistics, and manufacturing.
The draft revision offers zero business income tax for export, zero business income tax for domestic sale which accounts for less than 10 percent of the total revenue, convenience for customs clearance, and cut of the required ratio of aboriginal employees to one percent, down from five percent now.
One major purpose of the draft revision is to enhance the competitiveness of Taiwan’s free-trade ports. Presently, Taiwan has five free-trade port areas in Keelung Port, Taipei Port, Taichung Port, Kaohsiung Port, and Taoyuan International Airport.
By comparison, China has approved 12 tax-bonded port areas, four of which already in operation, Hong Kong is a free trade port in entirety, Singapore has two free-trade port areas, one at harbour and the other at airport, and Korea has six free-trade port areas.
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2009/4/8