The Taiwanese Ministry of Finance recently announced it plans to implement a new corporate income tax system starting January 1, 2005. The new system, for which parliament has already given its approval, will include a 10% minimum corporate income tax for companies which have annual revenue of more than NT$2 million. Currently, companies usually pay only a very small amount of 25% income tax they are typically required to pay, as they benefit from tax incentive schemes. On average companies pay less than 4% of income tax, which makes the new system a significant turnaround from existing policy. Companies active in ICT-related areas will be particularly affected by the new system, as the government in the past has given some the most favorable tax incentive schemes to these companies to stimulate this industry segment. The ministry stated that companies will be allowed to keep making use of outstanding tax incentives until they expire, which for some companies might delay the impact of the new plan for several years. After two years the ministry will review the new policy to make changes if needed.