TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) announced Friday (Oct. 4) amendments to Articles 23-1 and 23-2 of the Statute for Industrial Innovation to lower investment thresholds.

In a press release, the ministry said Article 23-1 stipulates that venture capital limited partnerships investing in startups must have a paid-in capital of NT$300 million (US$9.2 million), with 30% of the investment directed toward startups. However, since its implementation in 2019, only 16 businesses have used it, per CNA.

To expand eligibility, the paid-in capital for partnerships has been reduced from NT$300 million to NT$150 million. The percentage of investment in startups has been increased to 50%.

Regarding Article 23-2, individuals who invest in cash to establish startups less than two years old, with an annual investment amount of NT$1 million in the same company, and hold the newly issued shares for two years, can deduct up to 50% of the investment amount from their annual comprehensive income.

A new provision will be added for personal investments to qualify for tax incentives for high-risk startups established for over two but less than five years.

The ministry said the amendments will encourage investment and growth in startup companies. The amendments will take effect on Jan. 1, 2025.