Taiwan is investigating to develop a Free Economic Demonstration Zone (FEDZ), and preliminarily proposing many preferential measures concerning land, tax, manpower, and the like. The Council for Economic Planning and Development (CEPD) proposed to release regulatory restrictions to the maximum, so as to attract investment from multinational enterprises, foreign countries, and People's Republic of China.

For Intellectual Property (IP) rights, if an enterprise in the FEDZ purchases a patent right that is unavailable in Taiwan and imports it into the FEDZ, the purchasing enterprise may enjoy exemption frombusiness operation income tax by taking the patent purchased as a company expense, and may also be exempted from personal income tax for the amount paid for such IP procurement.

Additionally, in activities of the IP industry, if the five port Free Trade Zone (FTZ) imports goods from overseas into the FEDZ for simple processing and then exports them, the goods will be 100% tax-free;while only 10% of the sales income may be exempted from business operation income tax if the goods are simply imported into the FEDZ.