1

Port No. 1Port No. 2

Suitable for: Warehousing & storage Simple processing Global logistics Transit and

transshipment Yacht manufacturing

4. Excellent Investment Environment and Conditions Introduction to major clusters

Free Trade Zone in the Port of Kaohsiung It may expand with the Offshore Shipping Center for value-added functions

such as processing. Electronic data transmission via an information platform shortens entry and

exit time, and increases transportation efficiency, while eliminating the needs for escorting transit containers.

The Container Terminal No. 6 (74.8ha) is expected to increase the container handling capacity by 2 million TEU.

Kaohsiung City Government is undertaking the Southern Star Project to create land to connect the Free Trade Zone in the Port of Kaohsiung and to accommodate 72 logistics and production businesses, in order to help the industries transform into value-added industries.

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4. Excellent Investment Environment and Conditions

Unit: NTD/cubic meters; NTD/degree

Excellent Investment Conditions High-quality human resources

Professional talents in management and high-tech R&D － A total of 9 colleges and universities are located in the area, with more than 6,000 college and postgraduate graduates each year. More than 600 academy-industry cooperation projects were proposed each year, and the total budget exceeded US$15.38 million.

Labor wage rates are lower compared to Hong Kong, Macao, Japan, Korea, and Singapore. Taiwanese labor possess hardworking and diligent characteristics and have high production capacity.

Relatively stable prices of commodities and houses It is quite beneficial for talent recruitment and employment.

Complete information and communication infrastructure Usage rate for local telephone reached 97.56%, and for cell phone 92.5% Household internet connection rate reached 76%, and the rate of broadband internet use accounts for 63.

37% 。 Sufficient water and power supply at low prices

The government has been actively engaged in water source development and improvement in water resource utilization efficiency

The ongoing “999 Reliable Power Supply Promotion Program” enhances the reliability of power supply and reduces blackout time

The water and electric utility fees are relatively low compared to other countries in the world

Country/City Taiwan Hong Kong Korea Japan USA France UK

Water fees 10.72 17~37 8.24 65.0 19.3 99.5 61.6

Electric fees (for residential use)

2.57 3.82 3.28 5.94 3.5 4.8 6.2

Electric fees (for industrial use)

1.78 2.95 2.24 6.15 2.0 1.7 2.3

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5. Favorable Investment Policies

Qu

alification

to A

pp

ly

1. Enterprises that had a new investment amount of more than US$923 thousand within the past one year in Kaohsiung City

2. Enterprises that increased job opportunities for 30 or more domestic laborers within the past one year

3. Enterprises that have established the R&D center or global operation headquarters in Kaohsiung city

4. Industries that invest, develop, or enter and function in the Multifunctional Commerce and Trade Park or the Air Cargo Park, have been approved as the industries listed in the Kaohsiung City Self-Government Ordinances for Governing Receipts, Expenditures, Custody and Utilization of the Private Investment Encouragement Fund, and are eligible for preferential rental rates by following the relevant development projects of government agencies, as approved by the Executive Yuan, upon the accordance of the land leasers within the above two parks

Elig

ible

En

terprise

1. Strategic industries approved by the Kaohsiung City Government2. Those investing in the public infrastructure of the city pursuant to the Law for

Promotion of Private Participation in Infrastructure Projects3. Urban renewal businesses that implement reconstruction, renovation and

maintenance within the renewal areas of the city pursuant to the Urban Renewal Act

4. Other upgraded industries

Qualification & Eligibility

4

Subsidies and Preferential Rates for Encouraging Private Investment

Strategic industries approved by the Kaohsiung City Government

Interest Subsidy

The subsidy is 1.5% of the actual financing value. The subsidy term for each applicant shall not be longer than five years. The annual subsidy amount shall not exceed US$36.9 thousand.

Rent Subsidy

The subsidy will be 50% of the rent specified in the lease contract. The subsidy term for each applicant shall not be longer than five years. The annual subsidy amount shall not exceed US$12.3 thousand.

Those meeting the 4th condition of the qualifications (Multifunctional Commerce and Trade Park and the Air Cargo Park)

Interest Subsidy

The subsidy is 2.5% of the actual financing value. The subsidy term for each applicant shall not be longer than five years. The annual subsidy amount shall not exceed US$184.6 thousand.

Rent Subsidy

30% of the rent amount before the preferential rental rates apply are annually subsidized during the applicable period.

House Tax

Subsidy

Applicants who buy or build houses used directly for the purpose of investment can apply for the subsidy of annual house tax. The subsidy term is six years. Subsidize the total amount for the first two years, and 50% for the last four years. The total amount of cumulative subsidies shall not exceed US$1.5384 million.

5. Favorable Investment Policies

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Tax Incentives for Export Processing Zone The one-stop services provided in the Export Processing Zone include the following services:

counseling, application processing, delivery, and examination and tracking of each department. The goal towards efficient services can be achieved with the unified administrative procedures.

Businesses may opt for the bonding approach or import after tax according to their needs.

Item Incentives

TariffImported machinery equipment, raw materials, materials, fuel, semi-finished goods, samples, and finished goods in transit for trading, warehousing, and storage are exempted from import duties.

Commodity Tax Export products manufactured in the zone are exempted from commodity tax.

Business TaxThe zero business tax rate applies to export products, the associated labor services, and purchased materials.

Deed TaxAcquisition of newly-built standard plant within the Export Processing Zone or legal acquisition of buildings from the Administration is exempted from deed tax.

Profit-Seeking Enterprise

Income Tax

The profit-seeking enterprise income tax imposed on transshipment businesses is based on 10% of the operating revenue.

Factory LoanBusinesses are offered a 70% factory loan or more when purchasing a standard plant in the zone.

House TaxThe 3% house tax rate for buildings for business purposes is reduced to 1.5% for plants used by businesses within the Export Processing Zone.

Regarding other tax incentives, the Act for Upgrading Industries or the most favorable regulation will apply.

　　　 5. Favorable Investment Policies

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北科技北科技

中經貿中經貿

南物流南物流

North –North – TechnologyTechnology

Central – Central – Commerce & TradeCommerce & Trade

South – South – LogisticsLogistics

Cianjhen River

Kaohsiung Mountain System

6. Future Industrial Development Planning Industrial Location The spatial structure and development are

based on three directions: technology for northern Kaohsiung, commerce and trade for central Kaohsiung, and logistics for southern Kaohsiung Northern Kaohsiung: technology, culture,

and sports Central Kaohsiung: international

commercial and residential circle Southern Kaohsiung: logistics industry and

free trade zone Development Structure

Connect the world and facilitate regional development through technology, logistics, commerce and trade

Stimulate commercial and trading growth on the basis of technology and logistics industries

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Northern Kaohsiung – Is separated from by theKaohsiung Mountain System

6. Future Industrial Development PlanningNorthern Kaohsiung: Technology, Culture &

Sports Bring adequate information and technology into the

Export Processing Zone for its transformation into a technology park, with the aid of the MRT, which is connected to the Southern Taiwan Science Park in the north

Seek the opportunity to establish national institutions for experiment, design, research and development by combining efforts with the Academy-Industry R&D Park

Promote the green energy industry Develop the northern Kaohsiung into a living area for

technology talents

Academy-IndustryAcademy-IndustryR&D ParkR&D Park

Tainan Science-based Tainan Science-based Industrial ParkIndustrial Park

Connected by KMRT for further development

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高雄燈塔

海水浴場

海岸公園

輪渡站

陽光大道

親水廣場

星光隧道自行車道

旗　津天后官 廟

前路(

海鮮

街)

Promoting Green Energy Industry Establish a solar power validation center Construct energy saving show houses and solar-powered

communities Promote campaigns for the green energy industry Conduct cultivation training of professional talents in green energyConduct cultivation training of professional talents in green energy

6. Future Industrial Development Planning

The main stadium for 2009 World Games

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Diversified Living CircleDiversified Living Circle

Regional Commercial Regional Commercial Center Center

New Heart of Oceanfront CityNew Heart of Oceanfront City

Tourism & Tourism & RecreationRecreation

CircleCircle

Cijin Island of SustainabilityCijin Island of Sustainability

HSR Zuoying StationHSR Zuoying Station

6. Future Industrial Development Planning

Develop the downtown area into a regional commercial center and diversified living circle, to promote the new heart of this oceanfront city based on the Multifunctional Commerce and Trade Park

Develop a high-quality waterfront area Develop Cijin into an island of sustainabilit

y (tourism)

Central Kaohsiung: international commercial and residential circle