Taiwan, the Republic of China (hereafter called Taiwan) is a friendly country for investment. Taiwan not only provides attractive tax and other incentives for new investment and expansion of existing investment, but also has high quality of human resource, well developed and transparent government and regulatory system, acquaint industrial space, and strong industry foundation. These factories make Taiwan becomes an excellent and competitive location for foreign investors to building up their regional operation center, research & development center, logistic center, or production base in the Asian Pacific region. In addition, Taiwan has high buying power of people and liberalized statutory system. Taiwan is also a very attractive market to foreign investors for setting up their distribution channel or stores selling verity of consumption products.

Normally, it would be costly and time consuming to foreign investors to get the information on Taiwan taxes, incentives, investment procedure, human resource market, and industrial and commercial used real property, etc. The publication therefore provides a comprehensive introduction and information on Taiwan taxes, investment incentives, investment procedure, human resource market and compensation benchmark for major industries, industrial and commercial used real property market, transportation, gas, water, electricity, and living environment. In addition to the information provided in the publication, readers can also obtain more information from the website of “Invest in Taiwan” at http://investintaiwan.nat.gov.tw/en/ or from other government competent authorities and their Websites introduced in this publication.

In order to facilitate foreign investment in Taiwan, the Ministry of Economic Affairs engages Deloitte & Touche to prepare this publication based on current tax laws and regulations, and information provided by Watson Wyatt Taiwan Branch and DTZ Debenham Tie Leung Limited, regarding human resources and remuneration and real estate market analysis, respectively. We hope this publication will help foreign investors gain a better understanding about Taiwan's investment environment and encourage them to invest in Taiwan.

All currency presented in this publication is New Taiwan dollars (NT$). For the exchange rate information, please visit the Website of Central Bank of China at http://www.cbc.gov.tw/EnglishWeb/e or Bank of Taiwan at http://www.bot.com.tw/English/default.htm

Unless otherwise indicated, the information contained in the publication is based on the information available as of 31, October 2005.