Taipei Exchange

In line with Taiwan government’s policy of cultivating start-up companies to drive industrial transformation, the Ministry of Finance has recently amended Article 12 of Income Basic Tax Act. From now on only domestic “High-risk Innovative Startups” approved by the competent authorities, and those who have established for less than 5 years at the time of stock trading shall be exempted from the basic income of the individual. As of April 14, 2021, there are 5 eligible GISA companies.

Any GISA company that meets the requirements of subparagraph 1, paragraph 2, article 3 of Regulations Governing Identification of High-risk Innovative Startups Referring to the Article 12 of Income Basic Tax Act shall be deemed to be “High-risk Innovative Startups”. Specifications of qualification are registered companies on GISA, less than 5 years from the date of establishment, and in accordance with paragraph 3, article 4 of Taipei Exchange Regulations Governing the Go Incubation Board for Startup and Acceleration Firms (RGGIB) agreed by the majority of examination committee members appointed by TPEx, or in accordance with subparagraph 1, paragraph 1, article 5 of RGGIB obtaining an "Innovation and Creativity Opinion Letter" issued by the competent authorities recognized by the TPEx as "Referral Agencies", or in accordance with subparagraph 2, paragraph 1, article 5 of RGGIB obtaining a recommendation letter issued by the central competent authorities specifying the company’s innovation and creativity.

As of April 14, 2021, a total of 5 GISA companies is qualified as “High-risk Innovative Startups”, i.e. Damai Internet Inc. (stock code: 7600), INFINITE RESOURCE TECHNOLOGY CO., LTD. (stock code: 7598), XIMO Health life Co., Ltd. (stock code: 7565) , WOW Biomedical Technology Corp.(stock code: 7564), and Liu Chang Cultural and Creative Co., Ltd (stock code: 7549). TPEx will announce the list of qualified GISA companies quarterly. Search path is http://www.tpex.org.tw > GISA Stock > List of High-risk Innovative Startups.

TPEx established Go Incubation Board for Startup and Acceleration Firms to provide innovative enterprises in financing, the establishment of accounting control and enhance visibility. Any investor to trade stocks of GISA companies qualified as “High-risk Innovative Startups” can be exempt from the basic income of individuals. This tax-exempt incentive will encourage individuals to invest in start-ups, and to inject funds into GISA companies.