A draft bill offering special tax incentives to businesses headquartered in Taiwan is expected to pass the Legislative Yuan Tuesday and take effect starting on Jan. 1, 2010. A Ministry of Economic Affairs spokesman said that with the implementation of the new bill, Taiwanese businesses with their operating headquarters in Taiwan will be eligible for tax breaks, including receiving tax exemptions for certain categories of income. Business income from research and development projects and patent rights and profits from investments in related overseas enterprises will not be taxed, while income from other operations will be taxed at 20 percent, the standard corporate income tax rate in Taiwan beginning in 2010. Multinational companies that establish their headquarters in Taiwan will receive an even deeper tax break. Their corporate income will be taxed at a fixed 15 percent rate while enjoying the same tax exemptions for specific categories of income. The spokesman said the draft bill is aimed at attracting more multinational companies to set up operational headquarters in Taiwan. He estimated that the global or regional headquarters of an international business could create at least 1,000 job opportunities and contribute tax revenues of NT$3 billion annually. 