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This document is prepared to help expatriates understand their tax obligations in order to avoid the financial or legal trouble that could arise from either overpaying or falling short on their tax obligations.

International tax systems continues to evolve, aiming to tackle concerns over base erosion and profit shifting (BEPS) and perceived international tax avoidance techniques performed by high-profile multinationals. The OECD’s Action Plan and recommendations on BEPS have greatly influenced how Taiwan intends to shape its transfer pricing regime.

Understanding Taiwan Tax Regulations Effective from 1 May 2017, foreign e-commerce operators having no fixed place of business in Taiwan but who provide services to individuals in Taiwan via the internet must register for VAT if their annual Taiwan sales exceed TWD 480,000 (Approximately USD 15,500)

Taiwan levies value-added tax (VAT) on all taxable transactions that take place in the Republic of China (Taiwan), regardless of whether or not both parties to the transaction are located in Taiwan.

Grant Thornton Taiwan recommends that clients review their transfer pricing policy regularly and take any needed action to address documentation requirements before the corporate income tax filing deadline.

In order to be more in line with international standards, the Taiwan Government has amended tax regulations relating to use of logistics warehouses.

Grant Thornton Taiwan was founded in 1971. The firm is committed to providing high-quality services to clients. We work closely with our international organisation, constantly developing new service lines to meet the needs of international clients. We are also registered with the U.S. Public Company Accounting Oversight Board (PCAOB) and are ISO 9001 and ISO 27001 certified.

Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. These firms help dynamic organisations unlock their potential for growth by providing meaningful, forward looking advice. Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to understand complex issues for privately owned, publicly listed and public sector clients and help them to find solutions. More than 53,000 Grant Thornton people, in over 130 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work.

Article 1 of the Value Added and Non-Value Added Business Tax Act states “business tax, in the form of valueadded or non-value-added tax, shall be levied upon the sale of goods and services within the territory of the R.O.C. as well as upon imported goods.”

The Taiwan Government amended the Statue for Industrial Innovation (also known as SII) towards end of 2019 hoping to achieve national objectives.

A TP report should include the following contents: background information and industry overview, functional and risk analysis of all transacting parties, evaluation of each controlled transaction based on prescribed rules, selection of comparable parties based on certain criteria, analysis of degrees of comparability, selection of the most appropriate method, disclosure of pricing strategy and other relevant information regarding other participants in the controlled transactions, and determination of whether the controlled transactions are within arm’s length range.

“Grant Thornton Taiwan is driven by a simple ambition: to be recognized as the obvious best choice for dynamic businesses seeking to expand their operations in Taiwan and throughout Asia. A dynamic, fast-growing company in our own right, we understand at a personal level the ambitions and aspirations of businesses seeking to be number one in their respective fields. Our reputation as one of Taiwan’s top advisory firms allows us to attract an international team of the brightest, most dedicated assurance, tax and advisory specialists, providing the quality of a Big 4 accounting firm at a fraction of the price. We already serve some of the largest global enterprises in Taiwan, and invite growing businesses of all sizes to explore what we can do to turn your aspirations into a reality.”

Taiwan passed a significant amendment to the Company Act which officially came into effect on 1 November 2018. Major changes brought by the Company Act amendment include the following: - New statutory audit requirements - Requirements for regular upload of information related to directors, supervisors, managers and shareholders to the Government’s website. - Reducing the required minimum number of directors/supervisors for a Company Limited by Shares. - Introducing no par value shares for a Company Limited by Shares. - Shareholders’ meetings can be held via video conference for a private companies if this is prescribed in the articles of incorporation. - A company’s articles of incorporation may permit written consent in lieu of holding a directors’ meeting. - The need to appoint a litigious and none litigious agent for a Branch Office has been abolished. - Companies are permitted to register English Names together with Chinese Names.

Asia Pacific is the engine room of the global economy. GDP growth across the region outstrips the West; while the vast majority of European and North American economies are forecast to grow by less than 2% in 2016, many of those in Asia Pacific are looking for at least 3% growth and in some cases more. And while the Chinese economy cools, increasing economic cooperation between its neighbours has the potential to offset this.

Fees from international students offer an incredible boost to Higher Education Institutions’ (HEI) financial results. With some gaining as much as 30% of their income from this rapidly growing market – worth £20 billion overall.1 So institutions are increasingly competing for a share.