{"id":6109,"date":"2019-05-14T08:41:07","date_gmt":"2019-05-14T08:41:07","guid":{"rendered":"http:\/\/localhost\/test_manager\/expand-your-business-in-taiwan\/"},"modified":"2019-07-09T06:14:58","modified_gmt":"2019-07-09T06:14:58","slug":"expand-your-business-in-taiwan","status":"publish","type":"post","link":"https:\/\/managersoffice.net\/el\/expand-your-business-in-taiwan\/","title":{"rendered":"Expand your Business in Taiwan"},"content":{"rendered":"<p><span style=\"font-size: small; color: #000033;\">Taiwan welcomes foreign business investors, especially those with a high-tech focus.<\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Taiwan is strategically located at the crossroads of three leading Asian economic regions:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">North East Asia<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">China<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">The Association of South-east Asian Nations (ASEAN).<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">In terms of shipping, the average time from Taiwan to five major regional harbours (Singapore, Hong Kong, Tokyo, Shanghai and Manila) is 53 hours. The average flight time from Taiwan to seven major cities in the western Pacific is less than three hours.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><br \/>\nIMPORT TARIFF AND VAT EXEMPTIONS FOR BONDED FACTORIES<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Raw materials imported by bonded factories are exempt from import tariffs and VAT. Import tariffs and VAT are levied upon any such raw materials shipped outside the bonded area.<\/p>\n<p><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">INCOME TAX CREDIT FOR R&amp;D EXPENDITURE<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">For an enterprise\u2019s spending in research and development (R&amp;D), 15% of the spending is entitled to an income tax credit. The credit can be used to reduce the payable income tax of an enterprise, applying to 30% of the income tax payable in the year when the R&amp;D expenditure was incurred, while any unused credit becomes ineffective and is not allowed for deductions in the following year.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>TYPES OF BUSINESS<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The following main types of business entity are generally chosen in Taiwan by foreign investors:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Subsidiaries ( Company Limited by Shares, Limited Company, Unlimited Company, Close Company, and Limited Liability Partnership)<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Branches<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"color: #000033;\"><span style=\"font-size: small;\">Representative office.\n<p><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">SUBSIDIARIES<br \/>\n<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">For this type of company, the name needs to be approved and registered by the Ministry of Economic Affairs (MOEA) before the subsidiary can be formally registered.<\/p>\n<p><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">REPRESENTATIVE OFFICE<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">A representative office works for a foreign company and needs to be registered with theMOEA. A non-Taiwan citizen can be appointed as the \u2018responsible person\u2019 for a Taiwan-registered company, but such a person should have a residence registered in Taiwan.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">It can take up to three weeks to register a company in Taiwan. There is no minimum initial capital requirement for any kind of business entity, branch office or representative office.<\/p>\n<p><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>BUSINESS TAXES<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">PROFIT-SEEKING ENTERPRISE INCOME TAX<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">10% SURTAX FOR UNDISTRIBUTED EARNINGS<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">A 10% income tax is imposed on undistributed net earnings generated in every year since 1998. Paid income taxes (including both 17%-rated and 10%-rated ones) are accumulated in an Imputation Credit Account (ICA). The \u2018Credit\u2019 is attributed to shareholders upon earnings distribution, and half of the amount of the credit can be used to offset the respective shareholders\u2019 individual consolidated payable income tax.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The 10% income tax and ICA are applicable to all profit-seeking enterprises except for branches, partnerships, proprietorships, not-for-profit organisations and certain other entities restricted from earnings distribution by related statutes (for example, governmentowned entities).<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">From 1 January 2016, an individual or a profit-seeking enterprise who has any income derived from transactions of house, the share of land associated with the house or any land which can be issued a construction permit (hereinafter referred to as the \u201chouse and land\u201d) which comply with any one of the following conditions, shall be subject to assessment of income tax:<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">1. The transferred house and land are acquired on or after the following day of 1 January 2014, and have been held for a period of no more than 2 years<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">2. The transferred house and land are acquired on or after January 1, 2016.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Only the paid 10% income tax can be attributed to non-Taiwanese resident shareholders or to entity shareholders who have no fixed operating premise located in Taiwan, by means of offsetting the withholding upon remitting earnings distributions.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><br \/>\nVAT (VALUE ADDED TAX)<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">For the majority of businesses, the standard VAT is 5%.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The VAT rate is 0% for exports or goods sold to a \u2018bounded area\u2019 or to a Science-based Industry Park and for international transportation.<\/p>\n<p>Certain transactions are exempt from VAT, such as the sale of land, the sale of raw agricultural harvests, cattle and fish, and activities for public welfare, culture, education and charity, etc.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The VAT rate is 1% for premium income from re-insurance..<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">VAT rates are 15% and 25% for certain entertainment businesses.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Profit-seeking enterprises applicable for a 0% VAT rate can file a VAT-in return. VAT exempt profit-seeking enterprises are obliged to calculate a \u2018non-deductible ratio\u2019 and to compensate the government for any over-deducted VAT-in amounts.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u00a0<\/span><\/span><\/p>\n<p><strong><span style=\"color: #000033;\"><span style=\"font-size: small;\">Manager\u2019s Office<\/span><\/span><br \/>\nFinancial Dept<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>In terms of shipping, the average time from Taiwan to five major regional harbours (Singapore, Hong Kong, Tokyo, Shanghai and&hellip;<\/p>","protected":false},"author":1,"featured_media":7567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":""},"categories":[153],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Expand your Business in Taiwan - 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