Accounting and legal

Accounting and tax

    Corporate tax rate and legal obligations in Taiwan

  1. Taiwan’s corporate tax rate is a flat 17% on corporate profits;
  2. In Taiwan the standard VAT rate is 5% to all general industries. However a zero tax rate applies to exports;
  3. Taiwan has signed 24 comprehensive double taxation avoidance treaties;
  4. Taiwan has signed 14 international shipping/air transport double taxation treaties;
  5. Most companies in Taiwan require an annual statutory audit;
  6. Healy Consultants’ compliance department guides our Clients through their legal and tax obligations;
  7. PWC’s Paying Taxes 2015 survey rated the ease of paying business taxes in Taiwan as the 37th simplest the world. PWC estimates that it takes 221 hours and 11 payments each year in order to achieve tax compliance in Taiwan. The index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent;
  8. If the company distributes profit to foreign shareholders, a 10% withholding tax will be charged on the dividends paid;
  9. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

  1. There is no minimum the paid up share capital requirement for private companies under Taiwanese company law. However, in order to employ a foreigner and ensure a smooth incorporation process, it is recommended to capitalize your firm’s Taiwanese subsidiary with at least US$17,000;
  2. Before company incorporation is complete, the Taiwanese government must review and approve a lease agreement for office premises. If your requires assistance from Healy Consultants to find suitable premises, our one-time fee amounts to US$950. The monthly rent thereafter will be paid independently and directly to the landlord by our Client. An estimate of such a rental for a space of 10 sq. m. for one employee is US$1,200 per month;
  3. In accordance with the Taiwan Company Act, an LLC shall as from the date of its incorporation have a legal registered office in Taiwan, to which all official government communications and notices may be addressed. To comply with this statutory requirement, Healy Consultants’ Taiwan office will be the registered office address for your company. Thereafter, this address will be used to receive government correspondence including i) the annual tax return, ii) notice of the annual return; and iii) notice of government audits. Most of our Clients wish to place Healy Consultants’ office address on invoices, contracts, websites and business cards;
  4. Taiwan is a full member of i) the World Intellectual Property Organization (WIPO) ii) World Trade Organization (WTO) iii) the Paris Convention iv) the Patent Cooperation Treaty (PCT) v) the WIPO Copyright Treaty vi) the WIPO Performances and Phonograms Treaty (WPPT) vii) the Rome Convention and viii) the Kyoto protocol;
  5. Companies incorporated in Taiwan require an import licence in order to import goods. However, if local agents or distributors do not have import licences, companies can import through an import-export trading company. Exporters should confirm with their potential business partners which import approach will be used;
  6. Regular working hours are 8 hours a day and 84 hours in two weeks. Workers are granted leave on all national holidays, and other days designated by the Taiwanese government.

Contact us

For additional information on our accounting and legal services in Taiwan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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