Business Indicators Summary

With an overall score of 8.65/12, Taiwan is progressing toward standard on the economic, legal, and political indicators that make up our Business Index. Taiwan can be categorized as a mature market economy with the government playing an active and sometimes dominant role. Taiwan encourages foreign investment and provides equal treatment to foreign and domestic investors, although it does maintain a list of industries closed to foreign investment in order to safeguard national security and environmental protection. The country also provides a variety of investment incentives, including accelerated depreciation and tax credits for investments in emerging or strategic industries, pollution-control systems, production automation, and energy conservation.. Property rights and contract laws are established, and Taiwan continues to improve its Intellectual Property Rights legal regime and enforcement, which are found to be lacking. Corruption is of no concern in the country, as reflected in the good standing in the Transparency International's Corruption Perception Index.