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Effective from 1 January 2013, in addition to the regular NHI premium, insured units (employers) are required to withhold a new premium, called the “supplementary premium,” before paying out certain categories of income, and making premium payments to the National Health Insurance Administration (NHIA) accordingly.

Taiwan Entity Comparison Table

In general, PRC nationals can receive entry permits to come to Taiwan for business-related activities. Taiwan business entities can choose one of the following four methods to apply for entry permits for PRC nationals. Grant Thornton Taiwan specialists can guide you to complete all the steps related to the application in an efficient manner.

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.

For companies filing corporate income tax returns on a calendar-year basis, the filing deadline is five months after the end of the fiscal year. If the deadline falls on a weekend or public holiday, it is automatically extended to the next business day. As a general rule, this filing deadline cannot be extended.

Annual meetings of the board of directors and shareholders must be held within six months following the end of the fiscal year.

Based on Income Tax Regulations that have existed for some years in Taiwan, hi-tech Companies and some high net worth individuals often make use of various tax planning tools to reduce or eliminate income tax liability. These Companies and individuals while representing a significant portion of Taiwan economy, yet only contribute limited amount of tax to society as a whole. As an effort to address this imbalance, Taiwan Tax Authority officially introduces Alternative Minimum Tax System effective from 1 January 2006. There are two AMTs, one for individuals and the other for corporations.

Establishing a compliant and well-structured employment contract is essential for any organization hiring in Taiwan. Such contracts must align with the country’s legal framework while also promoting a transparent and cooperative relationship between employer and employee.

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.

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.

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.”

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.