Taipei Municipal Self-Government Ordinance for Industrial Development

The Taipei Municipal Self-Government Ordinance for Industrial Development contains four key subsidies for startups including the Startup Subsidy, the Branding Subsidy, the R&D Subsidy and the Incubators and Angel Investors Subsidy. Additionally, the ordinance includes a series of tax incentives for investors and startups including; subsidized taxes, subsidized job training, subsidized rental costs and interest payments.  

To qualify for these benefits SMEs must be located in Taipei City and to working on investment projects which are innovative in character. There are no general limitations of capital or industrial field except where specified on specific programs.  

The Startup Subsidy 

The Startup Subsidy provides initial growth funding to new startups that have incorporated within the last 12 months. The fund is focused towards startups that work on creative operation models and that include technical innovation or service innovation as part of their model. The subsidy provides 50% of the startups budget up to a limit of 1 million NT$ (approx. $32,500).  

The Branding Subsidy 

The Branding Subsidy exists to support new or developing brands expand to new markets. The subsidy is aimed at enhancing the competitiveness of Taipei's brands and promoting the city's cultural and creative industries. It provides 50% of total project expenses up to a limit of 5 million NT$ (approx $160,000). 

The R&D Subsidy 

The R&D Subsidy incentives investment in specific R&D projects by offering to cover 50% of total project expenses up to a limit of 5 million NT$. The fields of Innovative Services, Technology Development and Creative Developments are covered by the grant. This subsidy is aimed at bigger companies with larger research capacities.  

The Incubators and Angel Investors Subsidy 

This subsidy targets organisations that provide support to startups seeking to grow their business in Taipei and angel investors focused on local companies. For incubators, and other similar ecosystem actors, the subsidy covers 50% of project costs up to a limit of 3 million NT$ (approx $98,000). This includes projects such as co-working spaces, employment, personal development costs, technology imports or activities to attract foreign startups. Additionally, the fund will match 10% of angel investments up to a limit of 3 million NT$.  

Investment incentives 

The Taipei Municipal Self-Government Ordinance for Industrial Development provides several investor incentives to boost industrial development and support small and medium enterprises (SMEs) in Taipei City. Some of the key incentives include: 

• Annual Housing & Land-value Tax subsidy. 100% subsidized for the first 2 years and 50% for the following 3 years with a cap of 50 million NT$ (approx $1.6 million).  

• Reduced Employees’ Payroll Tax for new hires. 10k NT$ (approx $3.3K) per employee for 12 months up to 5 million NT$. Only applicable to citizens of Taipei City.  

• Subsidized job and skills training with 50% of all costs paid for.  

• Rental subsidy. 50% Subsidized for 5 years with a cap of 5 million NT$ 

• Subsidized interest payments at a rate of 2.5% for up to 2 years with a cap of 50 million NT$.