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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.

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.

In order to be approved by the tax authority, company expenses in Taiwan need to be backed up by valid supporting documents.

In Taiwan, all enterprises must apply to purchase pre-printed invoice books from the Government. Only Government printed invoice books can be used for issuing invoices to customers.

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.

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.

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.

When a car is registered under the company’s name and provided to an employee for business purposes, all related expenses—including fuel, parking, repairs, and maintenance—can be recorded as company expenses.

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)

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.

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 of their tax obligations.

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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.”

“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.”

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.