Publications

Qualifying foreign enterprises may apply for an advance ruling under Article 25 of the Income Tax Act, which allows corporate income tax to be assessed based on a deemed profit percentage.

Taiwan’s Ministry of Finance released a number of important tax rulings relating to the source of income. This article summarizes the content of the rulings.

One needs to take these into account tax rulings when conducting benefits planning for expatriate employees working in Taiwan to make to most taxefficient fringe benefits package possible.

An estate tax return is due within six months from the date of death. A three-month extension is available if an application is submitted before the original due date.

Tax compliance audits are compulsory for companies reporting gross revenue in excess of TWD 100 million (approximately USD 3 million) per annum. There are also special incentives to engage a CPA firm to conduct a tax compliance audit.

When making transactions in Taiwan, it is important to pay attention to withholding tax obligations. This includes withholding tax payment deadlines, filing requirements, and applying the correct withholding tax percentage to payments.

Taiwanese resident corporations are subject to income tax on their worldwide income. Non-resident corporations, on the other hand, are subject to tax only on income derived within Taiwan through a branch or agent.

Force of attraction refers to rules for foreign enterprises in Taiwan that conduct business with domestic customers.

In order to close tax collection gaps, the Taiwanese Ministry of Finance has revised VAT and Income Tax regulations for foreign ecommerce companies with no permanent establishment in Taiwan.

In Taiwan, if an enterprise has a fixed place of business or a business agent in Taiwan, then it is seen as having a permanent establishment and must register a legal entity.

Expatriates taking up employment in Taiwan are subject to comprehensive tax rules and employment visa requirements. Grant Thornton’s Expatriate Tax team assists expatriates and their employers in navigating Taiwanese tax and immigration matters.

In order to provide more consistent and authoritative guidance, the Ministry of Finance (MOF) issued an interpretation note on 11 April 2007 clarifying the issue of taxation relating to software purchases and, at the same time, also released a new set of tax assessment rules relating to advance ruling applications

Excess interest shall not be considered as an expense or loss if the proportion of related party debt to equity of a profit-seeking enterprise exceeds a specified ratio.

When a company’s employees, directors, or supervisors use their own personal vehicle for business transportation, reimbursement and taxes on those reimbursements should be taken into account.

The Statute for Industrial Innovation in Taiwan provides a legal framework for boosting industrial upgrading, R&D, and competitiveness through tax incentives.

Experience shows that, in most cases, it is not cost-efficient for a company to maintain books outside of Taiwan. Please consider the following regulations prior to deciding where to maintain your accounting record.