Corning Inc may react to Taiwan government tax plans by moving a third glass substrate plant originally planned for the island to South Korea. It emerged from a report in the Commercial Times that Tai…
Corning Inc may react to Taiwan government tax plans by moving a third glass substrate plant originally planned for the island to South Korea. It emerged from a report in the Commercial Times that Taiwan risks losing the plant if it fails to honor a promise on tax incentives when it launches the alternative minimum tax (AMT) scheme. Officials with the American Chamber of Commerce were scheduled to bring the case to Vice Premier Wu Rong-i on 29 August, the newspaper said. The US company is now looking to setup a third plant, costing up to TWD 20 billion, that would consolidate supplies to Taiwan“s makers of TFT-LCD panels, it added. The paper quoted a senior cabinet official as saying the government is inclined to introduce a 10% AMT on corporate income in one stage, rather than over three years. The caucus of the ruling Democratic Progressive Party (DPP) does not support the original concept of starting the tax rate at 7.5% and then raising it to 8.5% and 10% over three years, the official said. The AMT is a tax calculation that adds certain tax preference items back into adjusted gross income. If the AMT is higher than the regular tax liability for the year, the regular tax and the amount by which the AMT exceeds the regular tax must be paid.