Taiwan

Investing

FDI in figures

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	1,898	1,625	7,424
FDI inward stock (millions USD)	n.c.	n.c.	50,386.0
Performance Index*, world ranking	131	132	119
Potential Index**, world ranking	19	20	n.c.
Number of Greenfield investments	84	68	66
FDI inwards (in % of GFCF)	2.8	2.3	10.3
FDI stock (in % of GDP)	n.c.	n.c.	14.2

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Taiwan

Strong points: - Industry clusters & complete supply chain
- Abundant skilled and educated human resources
- Strong R&D capabilities
- An emerging capital market
- Efficient logistics operation
- Gateway to China and the ASEAN markets
- Sourcing and marketing ICT products through Taiwanese companies
Weak points: - No direct link to China
- The attractiveness of China
- The size of the market is limited
Government measures to motivate or restrict FDI: New taxation regulations for foreign professionals in Taiwan have taken effect as of the beginning of 2008, according to an announcement by the Ministry of Finance (MOF).

The new regulations provide preferential tax incentives to foreign professionals employed in Taiwan, and are aimed at improving the overall environment for recruiting and attracting professional talent from other countries. The regulations, which address a general shortage of professional talent, are expected to benefit up to 3,000 foreign professionals in Taiwan.
More information Invest in Taiwan.
Bilateral investment conventions signed by Taiwan: With Argentina, Belize, Burkina Faso, Costa Rica, Dominica, El Salvador, Guatemala, Honduras, India, Indonesia, Liberia, Malaysia, Macedonia, the Marshall Islands, Nicaragua, Nigeria, Panama, Paraguay, the Philippines, Saudi Arabia, Senegal, Singapore, Swaziland, Thailand, Malawi, and Vietnam.

Administrative procedures relative to foreign investment

Freedom of establishment: Taiwan no longer has a list of permitted investments, but maintains a "negative" list of industries closed to foreign investment to maintain security and environmental protection. Liberalization has reduced that list to less than one percent of manufacturing categories and less than five percent of service industries. More information on US department website.
Acquisition of holdings: A majority holding interest in the capital of a Taiwanese company is legal.
Competent organization for the declaration: Investment Commission MOEA