August 2025
How to Enhance the Development of Taiwan’s Sports Industry? Insights from the Amendments to Taiwan’s Sports Industry Development Act
The sports industry has long been regarded as a symbol of national competitiveness. In the past, Taiwan’s sports sector was primarily focused on the manufacturing of sporting goods and equipment, which enjoys a strong global reputation for quality and market position. In recent years, however, Taiwan has made efforts to expand into other areas of the sports industry, such as event hosting, athlete management, marketing, and sports tourism. Nonetheless, due to limited resources and the relatively small number of enterprises engaged in these fields, development has been constrained. To address this, the government has increasingly turned to regulatory and policy incentives to encourage greater corporate investment in the sports industry.
Indeed, as global sporting events such as the Olympics, the FIFA World Cup, and the World Baseball Classic continue to attract worldwide attention, corporate sponsorship has proven to be a highly effective tool for enhancing brand visibility and goodwill, thereby deepening the connection between business and sports marketing. A notable example can be seen in the 2024 Paris Olympics, where international brands including Coca-Cola, VISA, and the LVMH group actively participated as sponsors, not only strengthening their corporate image but also demonstrating support for the values of sports. This trend is not limited to the global stage—Taiwanese companies have also stepped up their involvement in local sports development. For instance, athletes representing Taiwan in badminton, table tennis, weightlifting, golf, and archery at the 2024 Paris Olympics received substantial sponsorship from the financial sector. Beyond sponsorship, Taiwanese companies have continued to collaborate with athletes through endorsement deals, creating mutually beneficial opportunities for both sides.
On the policy front, in addition to efforts by local governments to construct sports venues and bid for international sporting events to boost sports tourism, legal reforms have been introduced to strengthen tax incentives for corporate support of sports. Under Article 26, Paragraph 1 of the Sports Industry Development Act (hereinafter the “Act”), companies that sponsor or support sports teams or individual athletes may deduct the donation amount as an expense in their annual corporate income tax filings, thereby reducing their tax liability.
In July 2025, the Act was further amended to expand these incentives. Key updates include:
1. New Subparagraph 6 under Article 26, Paragraph 1: Corporate organizing or co-hosting sporting events recognized by the Ministry of Education as promoting mass participation in sports may now deduct the related donations or expenditures as current-year expenses under Article 36 of the Income Tax Act. This aims to encourage corporate participation in organizing or co-organizing sporting events.
2. Amendments to Article 26-2, Paragraphs 2 and 3: For corporate donations to professional or amateur sporting events recognized by the Ministry of Education, the deductible tax benefit has been raised from 150% to 175%—enhancing the appeal of such contributions.
This article affirms the importance of tax incentives as a driver for the growth of Taiwan’s sports industry. In addition, it argues that beyond tax benefits, corporate investment in the sports industry could in the future be incorporated into corporate governance evaluation metrics. Recognizing the social value of such contributions would further foster a virtuous cycle of corporate support for sports and help companies fulfill their social responsibility commitments.
Indeed, as global sporting events such as the Olympics, the FIFA World Cup, and the World Baseball Classic continue to attract worldwide attention, corporate sponsorship has proven to be a highly effective tool for enhancing brand visibility and goodwill, thereby deepening the connection between business and sports marketing. A notable example can be seen in the 2024 Paris Olympics, where international brands including Coca-Cola, VISA, and the LVMH group actively participated as sponsors, not only strengthening their corporate image but also demonstrating support for the values of sports. This trend is not limited to the global stage—Taiwanese companies have also stepped up their involvement in local sports development. For instance, athletes representing Taiwan in badminton, table tennis, weightlifting, golf, and archery at the 2024 Paris Olympics received substantial sponsorship from the financial sector. Beyond sponsorship, Taiwanese companies have continued to collaborate with athletes through endorsement deals, creating mutually beneficial opportunities for both sides.
On the policy front, in addition to efforts by local governments to construct sports venues and bid for international sporting events to boost sports tourism, legal reforms have been introduced to strengthen tax incentives for corporate support of sports. Under Article 26, Paragraph 1 of the Sports Industry Development Act (hereinafter the “Act”), companies that sponsor or support sports teams or individual athletes may deduct the donation amount as an expense in their annual corporate income tax filings, thereby reducing their tax liability.
In July 2025, the Act was further amended to expand these incentives. Key updates include:
1. New Subparagraph 6 under Article 26, Paragraph 1: Corporate organizing or co-hosting sporting events recognized by the Ministry of Education as promoting mass participation in sports may now deduct the related donations or expenditures as current-year expenses under Article 36 of the Income Tax Act. This aims to encourage corporate participation in organizing or co-organizing sporting events.
2. Amendments to Article 26-2, Paragraphs 2 and 3: For corporate donations to professional or amateur sporting events recognized by the Ministry of Education, the deductible tax benefit has been raised from 150% to 175%—enhancing the appeal of such contributions.
This article affirms the importance of tax incentives as a driver for the growth of Taiwan’s sports industry. In addition, it argues that beyond tax benefits, corporate investment in the sports industry could in the future be incorporated into corporate governance evaluation metrics. Recognizing the social value of such contributions would further foster a virtuous cycle of corporate support for sports and help companies fulfill their social responsibility commitments.
