Gov't to offer foreign film production companies big tax-based incentives
By Lauly Li,The China Post
May 30, 2014, 12:09 am TWN
TAIPEI, Taiwan -- Foreign film production companies can in future claim tax refunds should they shoot movies in Taiwan, according to an amendment of the Motion Picture Act passed in the Executive Yuan yesterday.
The Executive Yuan yesterday sent the amendment to the Legislative Yuan for deliberation.
Cabinet spokesman Sun Lih-chyun (孫立群) yesterday told a press conference that in order to attract more international film production firms to Taiwan and increase job opportunities for Taiwanese film crews, the government decided to offer tax preferences to foreign film crews.
According to the amendment, foreign movie production companies can even claim refunds on food expenses and purchases of goods, Sun said, noting that the policy will also boost the nation's tourism.
The spokesman said that in order to boost the development of Taiwan's film industry, the amendment also extends the period of income tax preference to another 10 years for corporations investing in movies produced in Taiwan.
Sun further said, however, that the amount of income tax preference for investing in Taiwanese film productions cannot exceed 30 percent of the firm's total income tax for that fiscal year.
Sun quoted the Ministry of Culture (MOC) as saying that since the Motion Picture Act took effect in 1983 there have been several minor amendments to the act, noting that the current regulations are becoming impractical for the film industry in Taiwan in terms of the registration system for film crews and the restrictions for film production companies.
Sun went on to say that the essence of this amendment is to relax current regulations to improve Taiwan's movie industry, adding that the number of articles in the Motion Picture Act will be decreased from 58 to 24 articles.
According to the amendment, the regulation that stipulates that the head of a film production company must have a high school degree or above and the regulation that movies must encourage patriotism are deleted, Sun said.