Preferential Salary Increase and Tax Reduction for Small and Medium-sized Enterprises: MOEA Pushes for Implementation Next Year

The amendments focus on three primary areas: removing the "economic activation threshold," increasing the salary tax deduction from 130% to 150% and extending employment tax preferential treatment to employees over the age of 45, which was previously available only to young employees under the age of 24.

Several tax incentives outlined in Articles 35 (investment deduction for R&D expenses), 35-1 (deferred taxation for intellectual property valuation), and 36-2 (salary deduction for hiring employees and wage deduction for hiring young employees, as well as wage increase deduction) of the Small and Medium-sized Enterprises Development Act are set to expire on May 19 of this year. Therefore, the Ministry of Economic Affairs has proposed amendments to the act.

Previously, certain economic conditions, such as the "economic activation index reaching a certain level" (unemployment rate exceeding 3.78% for six consecutive months) must be met to be eligible for tax incentives under Article 36-2. However, the proposed amendments remove the threshold requirement and enhance tax deduction incentives. The aim is to encourage small and medium-sized enterprises to hire more employees and increase wages. The proposed amendments are now in a thirty-day public notice period, during which feedback from various stakeholders will be collected. After the notice period ends, the amendments will be submitted to the Executive Yuan for approval before being sent to the Legislative Yuan for deliberation. The goal is to pass the amendments during the current legislative session and implement them next year.

經濟部於三月初釋出中小企業發展條例修正案，並預計延長十年。修法包括三大方向：刪除「景氣啟動門檻」、加薪減稅扣除額至130%提高至150%，增僱員工除原本24歲以下青年員工增聘租稅優惠外，增加45歲以上為適用對象。

經濟部表示，中小企業發展條例第35條中小企業研究發展支出投資抵減、第35條之1智慧財產權作價入股緩課、第36條之2第1項增僱員工薪資減除及第2項增聘青年員工薪資減除、第36條之2第3項加薪減除等租稅優惠將於今年5月19日落日，因此預告中小企業發展條例修正草案。

經濟部中企署指出過去36條之2須符合「經濟景氣指數達一定情形」(失業率連續六個月高於3.78%)，才可啟用租稅優惠，此次修法將門檻規定刪除，並提高租稅抵減優惠，希望達到鼓勵中小企業增聘人力為員工加薪效果。相關修法方向已進入三十天預告期，後續會統整各界意見，預告期結束後再報行政院，轉請立法院審議。目標為力拼本會期過關，於明年上路。