Taiwan
AI Agent Legal Status: partial · Autonomy: moderate
Legal Framework
Taiwan has drafted an AI Basic Act but has not yet enacted comprehensive AI-specific legislation. The government emphasizes digital resilience and semiconductor leadership. Personal data protection is governed by the PDPA. Regulatory approach is cautious but increasingly engaged with AI governance issues.
Key Laws & Regulations
- ◆AI Basic Act (draft)
- ◆Personal Data Protection Act (PDPA)
- ◆Financial Technology Development and Innovative Experimentation Act
Business Formation
Company Limited by Shares is the standard entity for foreign investors. Registration through the Ministry of Economic Affairs. Semiconductor and tech sectors receive strong government support.
Tax Implications
Standard CIT rate of 20%. R&D tax credits and incentives for strategic industries including semiconductors and AI.
Opportunities
Semiconductor leadership positions Taiwan as critical to AI infrastructure. Government investment in digital resilience and AI talent development. Growing startup ecosystem with government-backed accelerators.
Highlights
Taiwan's dominance in semiconductor manufacturing (TSMC) gives it strategic importance in AI hardware supply chains. Strong engineering talent pool and growing AI startup ecosystem.
Risks & Challenges
Geopolitical tensions with China create uncertainty. AI Basic Act remains in draft stage, leaving regulatory gaps. Relatively small domestic market limits scale opportunities.