Taiwan cabinet passes bill lowering AI transformation investment credit threshold to NT$250,000
Taiwan's Executive Yuan approved on Oct. 8 a draft amendment to the SME Development Act, renamed the Micro, Small and Medium Enterprise Transformation and Upgrading Development Act, sending it to the Legislative Yuan. The draft adds a transformation-equipment investment credit with the qualifying spending threshold cut from NT$1 million to NT$250,000, covering smart machinery, AI applications, 5G, cybersecurity, and digital and net-zero investments — including software, technology and technical services, not just hardware. The R&D investment credit rate rises from 15% to 20% with broader outsourced R&D eligibility, while the Ministry of Economic Affairs plans NT$100 billion over eight years to support MSME upgrading.
If passed, it could lower the real cost for Taiwan's small firms to adopt AI and digital tools, and lift demand for local systems integration and IT services.
Taiwan Executive YuanTaiwan Ministry of Economic AffairsLegislative Yuan