- Taiwan Tax Taiwan Tax
- Miscellaneous Miscellaneous
- Transfer Pricing Transfer Pricing
- Expatriate Work Issues Expatriate Work Issues
“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.
Taiwan passed a significant amendment to the Company Act which officially came into effect on 1 November 2018.
Grant Thornton Taiwan was founded in 1971 to provide high-quality services to dynamic organizations operating in the fast-growing economy of Taiwan. The firm joined Grant Thornton International Limited (GTIL) as its sole Taiwan member firm in 1993. Our firm has achieved ISO certification every year since 2010 including ISO 27001 certification since 2016. We were listed among the top firms in the “World Tax 2015” and “World Transfer Pricing 2015” guides published by the International Tax Review. We were also named Transfer Pricing Practitioner of the Year – Taiwan by Acquisition International Magazine in 2016, and ‘Most Innovative for Auditing and Taxation Services – Taiwan’ in 2017.
Purchasing property is one of the biggest and most difficult investment decisions one can make, especially in a foreign country. The tax and legal systems that apply to property transactions differ from one jurisdiction to another, making it imperative that investors understand the local implications of any proposed transaction.
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.
Corporations resident in Taiwan are subject to income tax on their worldwide income. A company is normally considered a resident of the place where its head office is located.
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.” Based on the above, value added tax (VAT) is charged on taxable transactions that take place in Republic of China (Taiwan). The fact that one party to the transaction may not be located in Taiwan is irrelevant for VAT purposes.
Taiwan has undergone rapid development in the ecommerce market over recent years, and foreign ecommerce operators constantly knock on Taiwan’s door wanting to trade with Taiwanese residents via the internet. Most of these e-commerce operators have no permanent establishment in Taiwan.
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.
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.