The MOEA made an advance announcement about the revision of the “Act for the Development of Biotech and New Pharmaceuticals Industry”.  The revision will broaden the definition of “new drugs” by including drugs of new dosage forms and will extend the application to regenerative medicine, precision medicine and digital health.  The MOEA also decided to extend the expiry date of the Act for a further 10 years until December 31, 2031.

In order to encourage individuals to invest in the biomedical industry, the MOEA will give tax concessions to individual shareholders.  Those who have invested in the biomedical industry for more than 3 years will be able to enjoy a 50% income tax credit of their capital gains.

In order to continue supporting the development of the biomedical industry, the MOEA is to change the title of the Act to the “Act for the Development of Biomedical Industry”.  The new Act will have a broader definition of new drugs which includes drugs with new dosage forms.  As indicated by its new title, the Act will apply to regenerative medicine and precision medicine.  Also, with a view to promoting the cross-industry integration and cooperation, digital health will be covered as well.

In order to boost the biomedical industry, the MOEA will provide tax concessions to individual shareholders and the holders of shares from technology investment.  According to the revision, individual shareholders who have had their shares for more than 3 years could have 50% income tax credit of their capital gains for 5 years.  There are also tax concessions on high-level professionals’ shares from technology investment.  The new Act will keep the existing incentives, including 35% of R&D tax credit and 20% tax credit of corporate shareholder’s investment.

【2020-11-12 / Commercial Times】