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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.

A Foreign Entity investing in Taiwan may apply for withholding tax reclamation or tax relief if it is domiciled in a country that has a Double Tax Agreement with Taiwan.

Taiwan has a strict labor law regime and does not recognize “employment at will.” Whether an individual may be engaged as a consultant depends not only on contractual form, but also on the substance of the working arrangement.

Charge Out Rates for the year 2026

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

In general, employers can choose between three methods to apply for work permits for foreign employees. Grant Thornton Taiwan specialists can guide you and work with you to complete all the steps related to your work permit application, visa, and alien residence certificate in an efficient manner.

Under the new Act, all employers are required to deposit 6% (or more) of a worker's monthly wages into an individual labor pension account managed by the Bureau of Labor Insurance, with ownership going to the worker. Business entities employing 200 or more workers shall decide through their respective labor unions whether to adopt an annuity insurance program. If no labor unions exists,with the approval obtained through a labor-management meeting and the central competent(the Ministry of Labor), a business entity may take out an annuity insurance that complies with the Insurance Act on behalf of those workers who choose, in writing, to take out an annuity insurance.

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.

Directors and supervisors in a company are automatically deemed to hold “employer” status. Any person whose name appears on the company statutory record as the responsible person is also deemed to hold “employer” status.

Taiwan’s Ministry of Finance has announced that it will require taxpayers who meet certain criteria to prepare three layers of transfer pricing documentation.

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.

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.

An individual’s classification as a Taiwan tax resident directly affects income tax filing obligations and applicable tax treatment in Taiwan. Where there is uncertainty regarding an individual’s residency status, whether for personal circumstances or employment arrangements, professional advice should be sought.