Tax Benefits for Taiwan Computing Center Investment
With the rapid advancement of artificial intelligence (AI) and the growing demand for computational capacity, the world is entering an era of high-efficiency AI infrastructure development. Enterprises are experiencing a surge in demand for high-performance computing (HPC), driven by the expanding adoption of AI technologies. This wave of AI innovation is not only stimulating the hardware supply chain but also positioning computer power as a critical component of digital transformation.
Taiwan’s Ministry of Finance has recently announced a draft amendment to the “Scope of Major Public Infrastructure under the Act for Promotion of Private Participation in Infrastructure Projects,” explicitly including AI computing centers as eligible for tax incentives applicable to major public infrastructure. Under the proposed framework, only computing centers that meet specified thresholds in terms of investment scale and computing capacity will be recognized as qualifying major public infrastructure projects.
Once a project is designated as major public infrastructure, it becomes eligible for a range of tax incentives. These include a five-year exemption from corporate income tax, tax credits for investment expenditures, preferential customs duties on imported machinery and equipment, and reductions or exemptions in land value tax, house tax, and deed tax. In addition, corporate income tax credits may be available for profit-seeking enterprises investing in shares of such projects. These measures are intended to encourage private sector participation and investment.
The proposed criteria were primarily put forward by Taiwan’s Ministry of Digital Affairs, which seeks to include AI computing facilities within the scope of major public infrastructure for digital development. The designation is subject to a “minimum scale” requirement, which includes the following conditions:
-
The total investment amount, excluding land costs, must reach at least TWD 300,000,000; and
-
When measured at a computational precision of 32-bit floating point operations (FP32), the total computing capacity must reach at least 15 petaFLOPS.
Both the investment threshold and the computing capacity requirement must be satisfied concurrently.
This year, the government approved the “AI New Top Ten Infrastructure Initiatives,” under which computing infrastructure is positioned as a foundational element of the digital economy. The policy aims to encourage private enterprises to participate in the construction and operation of such facilities, thereby supporting industrial transformation across various sectors.
The Ministry of Finance in Taiwan has announced a seven-day public consultation period for the proposed amendments to the scope of major public infrastructure, during which feedback from stakeholders will be collected. The amendments are expected to be formally promulgated and implemented thereafter. Qiyuan will continue to monitor and provide updates on relevant developments.
KNOWLEDGE
