MOEA pushes SME upgrade bill to meet dual transition, net-zero goals

The Executive Yuan and the Ministry of Economic Affairs are actively promoting support policies for small and micro enterprises to comprehensively boost Taiwan’s industrial competitiveness and resilience. The Ministry is currently drafting a Small and Micro Enterprise Transformation and Upgrading Development Act, expected to be submitted to the Legislative Yuan for deliberation in October. The legislation aims to help the vast number of domestic micro shops and SMEs confront the twin challenges of digitalization and net‑zero carbon emissions, and to reduce transformation costs through concrete tax incentives, laying a more solid foundation for Taiwan’s economy.

According to the Ministry’s plans and statistics, Taiwan’s SMEs have long been the backbone of the national economy and employment market. The draft specifically targets 1,029,000 micro shops nationwide for priority assistance. Historically, many small‑scale retailers have struggled to upgrade when confronted with rapid market changes, price volatility, and rising labor costs, due to insufficient resources and technology. This ordinance, by involving government support, will provide technical and managerial counseling as well as comprehensive policy assistance, ensuring that grassroots economic entities can keep pace with the times.

To materially ease the heavy financial burden that SMEs face during upgrading, the draft outlines substantially relaxed tax incentive measures. The incentives focus on equipment investment and research and development innovation, encouraging firms to invest in technological upgrades and equipment replacement. The Ministry’s internal assessment projects that more