Taiwan IP Updates  ˇV Jan 2023

By Lyndon 

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Taiwan IP Office Plans to Issue Electronic Certificates

From the beginning of 2023, the Taiwan Intellectual Property Office (TIPO) will issue patent and trademark certificates in electronic form.  In order to cut down on paper usage and delivery costs as well as offer the IP right holder convenience in document management, the initiative is part of the overall government plan to modernize office procedures and encourage sustainable practices.  The applicant will have the option to choose either a paper or an electronic certificate upon paying issue fees.  By opting for the electronic format, the applicant may still request a paper copy if later needed (but not vice versa).   The process goes through the following several steps::

1. After receiving a notice of issuance, the applicant is instructed to download the e-certificate within 6 months from a specific webpage or in 5 days via the E-SET platform (an electronic document delivery system).
2. The e-certificate is issued as an encrypted PDF document with security measures, and there will be a code on each e-certificate.
3. By uploading the e-certificate to TIPO or scanning the code, it will be possible to quickly verify the documentˇ¦s authenticity or even see the latest legal status of the associated patent or trademark right.
4. An e-certificate is also available upon re-issuance, recordation of patent assignment, inheritance, and trust.

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Taiwan Drafts Bill to Help High-Tech Companie

Lawmakers in Taiwan introduced a draft bill to institute a new Article 10-2 of the Statute for Industrial Innovation. This new law aims to create tax incentives for high-tech companies investing in Taiwan. High-tech companies making Research and Development contributions to the semiconductor industry will enjoy a 25% credit against corporate income tax for their investments. That means 25% of their annual spending on R&D activities can be credited against the corporate income tax for the same year if:

1. They are in compliance with the environmental and labor laws.
2. Their investments meet a certain threshold.
3. The ratio of R&D expense to income reaches a certain scale.
4. The applicable effective tax rate is not lower than 15%.

Also, 5% of the total investments that are spent on brand new equipment for operating advanced processes can also be credited against the corporate income tax up to a limit of 30% of the payable corporate income tax for the year. The total combined tax credits for R&D investments and equipment procurements will be capped at 50% of the payable corporate income tax for the year. The new tax clause will also apply to foreign companies established in Taiwan with an R&D hub or subsidiary entity that meet the abovementioned requirements. Besides semiconductor firms, businesses involving electric vehicles, 5G communication or low-orbit satellites will also be eligible for these tax benefits. The new law is expected to go into effect in January 2023.

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China Issues Cause Tightening of Personnel Travel Rules in Taiwan

An amendment to the Regulations Governing Entry Permission to Mainland China for Government Employees and Persons with Special Status in the Taiwan Area has been proposed, the Ministry of the Interior said in December, 2022. It would require people who work with government-funded core technologies to notify the National Immigration Agency and other related agencies in order to receive permission from a review committee before making any trip to China. The review committee would comprise members of the Interior Ministry, the National Security Bureau, the Ministry of Justice, and the Mainland Affairs Council. The amendment specifically added a section on individuals or members of legal persons, organizations or other institutions entrusted, subsidized or invested to a certain level by government agencies who engage in matters involving national core technologies and stipulates that such people would need permission to travel to China for up to three years after they cease working with such technologies. Those with comments and suggestions can contact the Interior Ministry before the 60 day notification period for the amendment will cease at the end of January, 2023.

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