The Executive Yuan will pass the "Program to Support and Strengthen Micro, Small and Medium Enterprises" today (10th). The Ministry of Economic Affairs stated that it is expected that in the next eight years, the government will invest an additional 100 billion yuan in the budget into the "Micro, Small and Medium Enterprises Transformation and Upgrading Development Fund" to establish a long-term, stable and institutional support system. (Photo by reporter Zhong Lihua)
[Reporter Zhong Lihua/Reported from Taipei] The Executive Yuan will pass the "Support and Strengthening Plan for Small, Medium and Micro Enterprises" today (10th). The Ministry of Economic Affairs stated that the "Small and Medium Enterprises Development Ordinance" will be renamed as the "Ordinance for the Transformation, Upgrading and Development of Small, Medium and Micro Enterprises". It is expected that in the next eight years, the government will invest an additional 100 billion yuan in the budget into the "Micro, Small and Medium Enterprises Transformation and Upgrading Development Fund" to establish a long-term, stable and institutional support system. The new plan fully incorporates business districts, markets, local specialty industries, agricultural enterprises, tourism and tourism, and new innovations. At the same time, new inclusive loans for less than 30 people will be added, additional credit insurance lines will be obtained for employee salary increases, and tax incentives will be increased.
The Ministry of Economic Affairs stated that according to statistics from the "2025 Small and Medium Enterprises White Paper", there are a total of 1.716 million small, medium and micro enterprises in my country, accounting for 98.9% of all enterprises, and absorbing nearly 80% of the country's employed population (about 9.194 million people). In order to allow the results of economic development to benefit all industries, this plan and the revised law will comprehensively expand the care for micro-stores and the local economy, and implement the vision of "Thousands of billions support all industries, and growth will benefit all industries."
The Ministry of Economic Affairs pointed out that the biggest highlight of the plan and amendments is to expand counseling and inclusive resources to 1.716 million small, medium and micro enterprises across the country, to include 1.029 million micro-stores such as sole proprietorships and partnerships, which account for 60% of the total, into counseling and assistance, and to promote the improvement of the market environment of 353 business districts and 1,030 public places. It also introduces a "big-to-small" cooperation mechanism to encourage leading enterprises to play a leading role and lead small, medium and micro enterprises to connect high-tech supply chains and digital platforms. At the same time, a "new enterprise cultivation special chapter" is added to provide sufficient funds and space and remove regulatory obstacles, and strive to create an innovative experimental environment and cultivate a flourishing new innovation rainforest.
In addition, the revised law significantly relaxes tax incentives for equipment investment and R&D innovation. The Ministry of Economic Affairs explained that the deduction threshold for smart machinery, artificial intelligence, digital and net-zero transformation equipment has been significantly reduced to 250,000 yuan compared with the 1 million yuan in the Industrial Innovation Regulations. For the first time, "digital management systems" and "outsourced R&D expenditures" required by the service industry have been included in the scope of application, and the R&D deduction rate for that year has also been increased to 20%. In response to capital needs, the government provides small and micro enterprises with simple loan applications, special loans and short-term interest subsidies, and increases the risk guarantee of the credit guarantee fund for small and medium-sized enterprises, so that small and micro businesses that lack large-scale collateral can smoothly obtain the key funds needed for transformation.
In order to help small, medium and micro enterprises respond to talent needs, the bill adds incentives for talent retention and recruitment. In terms of "tax incentives for increasing employees", the applicable age has been relaxed from the original "under 24 years old and over 65 years old" to "under 29 years old and over 55 years old", thereby greatly assisting the employment of young people and the middle-aged and elderly. In addition, in order to actually encourage enterprises to take care of their grassroots employees, the markup and deduction rate of the "employee salary increase tax discount" has also been increased from the original 175% to 200%, allowing enterprises to enjoy more significant tax reductions and exemptions when raising salaries for grassroots employees, effectively easing the pressure on operating costs.
