Guide to Taiwan Employment Services License

Guide to Taiwan Employment Services License   According to the definition as “Employment Service Act” and “Regulations for Permission and Supervision of Private Employment Services Institution”, Employment Services is an institution to search the suitable jobs for seekers and collect the labor force for requesters, which services include recruitment, introduction, alteration of jobs and the physical check-up and entry or exit of employees, etc. from the request of employers. Any of individual or incorporation who intends to offer the abovementioned services shall apply for Employment Services License at Ministry of Labor in Taiwan. Ministry of Labor is the authority responsible for the issue and supervision of Employment Services License. To apply for Employment Services License in Taiwan, the applicants have to meet the requirements that the applicants’ employees shall hold the professional Employment services licenses. In the circumstance of a company which total number of employees is less than 5 persons, […]

What is Tax Compliance Auditing

What is Tax Compliance Auditing There are three types of declaration method commonly used by Taiwan Companies: tax declaration reviewing on paper with a standard profit rate, ordinary declaration (general declaration) and tax compliance audit. The so-called tax compliance audit is the appointment of a certified public accountant(CPA) to audit and check the corporate income tax declaration form.   Who needs Tax Compliance Auditing   Company with losses when initially set up, but expected to have profits after 2 or 3 years The loss of the tax compliance audit year can be used to offset the profits for the next 10 years; for the surtax 5% on undistributed profit, if your company have tax compliance audit in the year of loss, it can be used to offset the surtax on profit in the future. In other words, the loss can not be used to offset the profit in the future […]

What is Financial Report Auditing

What is Financial Report Auditing Financial report auditing is similar to tax compliance audit, but unlike that was based on the compliance with tax regulations to complete. Take small and medium enterprises as an example, according to the current regulations, the company have the following situations should conduct the financial report auditing: The company with actual capital more than TWD 30 million or reaching a certain scale; (“to a certain scale” means that the amount of capital does not reach TWD30 million but the net revenue is TWD 100 million; or the number of employees participating in labor insurance is 100 people.) Or the company that borrows more than TWD 30 million from financial institutions.   Who needs Financial Report Auditing Those who meet the following conditions must apply for the financial report auditing: Capital Amount more than TWD 30 million (inclusive); Handle promissory note guarantee or borrowing more than […]

Taiwan Incorporation Payroll Services

Taiwan Incorporation Payroll Services   1. Employees Payroll Basic Services and Fees   No. Description Duration 1 Calculation of staff labor insurance Monthly 2 Calculation of staff health insurance Monthly 3 Calculation of staff retirement pension Monthly 4 Calculation of staff salary Monthly 5 Prepare payroll slip of employee, provide a total amount of monthly salary to the accounting staff to release the salary Monthly 6 Prepare pay advice of each employee Monthly 7 Send the pay advice to the employee through email individually (Client please provide the email address of employee to us) Monthly 8 Declaration of withholding and non-withholding statement Yearly 9 Prepare and print withholding statement Yearly 10 2nd Generation of National Health Insurance Service (NHI) (1)Recognition of  items to be deducted Monthly (2)Calculate 2nd Generation NHI payable by employer and employee and prepare the insurance payment slip Monthly (3)Prepare 2nd Generation NHI withholding statement, for employees […]

Foreign Company Taiwan Branch Compliance and Maintenance Guide

Foreign Company Taiwan Branch Compliance and Maintenance Guide   Unless otherwise stated, the foreign company Taiwan Branch stated in this quotation referred to the limited company incorporated under the Taiwan Company Act and Business Registration Act. The compliances in this Guide are applicable to limited company as well.   When a foreign company Taiwan branch is established, in accordance with the provisions of Taiwan Company Act, the company must always have a Taiwan address for company registration, prepare annual business report, prepare financial statements, tax declaration in every two months and hire an accountant to audit its annual financial statement, etc.   This Guide is divided into 6 sections, mainly introduce the various declaration, maintenance responsibilities and related expenses after the establishment of a foreign company Taiwan branch. Section 1 -5 mainly describe the maintenance and compliance requirements for a Taiwan branch, while Section 6 shows the minimum necessary fees […]

Financial Statement Audit Service Fee Schedule

Financial Statement Audit Service Fee Schedule 1、 Timeline Month Services Action to be taken by client Oct ~ Dec ※ Arranging working field period before year-end. ※ In response to working field period, preparing for data and document.   Dec ※ According to the date of inventory physical count of the client, auditors will observe the physical count procedure on the same day. ※Receiving the blank confirmation letter has been stamped by the client. ※ Arranging the date of inventory physical count and give auditors a notice in the earlier. ※Stamping the confirmation letter. Jan (Next year) ※ Sending the confirmation letter out base on client book balance of bank account、A/R、A/P、 Deposit balance、investment account and lawyer’s name and address etc. ※ Providing the book balance and contact window of bank account、A/R、A/P、 Deposit balance、investment account and lawyer’s name and address etc. on 31st Dec. before 5th Jan. Feb ~ May (Next […]

Book-keeping Service Fee Schedule (Include Tax Compliance Audit Fee)

Book-keeping Service Fee Schedule (Include Tax Compliance Audit Fee)   1. Scope of Services   Our book-keeping and tax filing services provided from our Taiwan offices to our clients’ companies registered in Taiwan include:   (1)    Preparation of vouchers and binding of vouchers in a monthly basis; (2)    Filing of business tax (before 15th of each odd month); (3)    Filing of withholding and non-withholding tax statement (before the end of January); (4)    Filing of annual corporate income tax clearance report for previous financial year (before the end of May); (5)    Filing of undistributed profits (before the end of May); (6)    Filing of provisional income tax (before the end of September); (7)    Preparation of the annual financial statements in November and advice on areas of concern; (8)    Provision of updates on accounting and tax issues on a regular basis (9)    Advise the general operation and accounting system operation; (10)  Free basic […]

An Overview on Shenzhen Individual Bankruptcy Regulations

An Overview on Shenzhen Individual Bankruptcy Regulations   China’s first regulation on individual bankruptcy, the Regulations of Shenzhen Special Economic Zone on Individual Bankruptcy, came into force on 1 March 2021. An overview on the said Regulations is enclosed hereby for your easy reference.   Who can file for bankruptcy?   According to the Regulations, eligible debtors and creditors both can file bankruptcy petitions to the court.   The debtors who can file for bankruptcy shall meet the following requirements: (1)  have been living in Shenzhen and have paid social insurance for 3 consecutive years in Shenzhen; (2)   unable to pay off their debts because of business struggles or problematic consumption or their assets are insufficient to pay off all the debts.   The creditors who hold more than RMB500,000 due creditor’s rights against the debtor alone or jointly can also file a bankruptcy petition to the court when the […]

U.S. Individual Income Tax–Filing Status Requirements

U.S. Individual Income Tax–Filing Status Requirements When you prepare U.S. Individual Income Tax Return (Form 1040), the first box you need to check is your filing status. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits, and your correct tax rate.   There are five different choices of filing status (The five filing statuses are: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child), but you can only choose one filing status on your tax return. If more than one filing status applies to you, you may choose the one that will result in the lowest amount of tax. Your filing status may change from year to year.   Filing Status Requirements   (1)     Single Filing Status   If on the last day of the year, you are unmarried or legally separated from your spouse under […]

U.S. Individual Income Tax Part 3 How to Read and Understand Form W-2?

U.S. Individual Income Tax Part 3 How to Read and Understand Form W-2? When you prepare your U.S. individual income tax return (Form 1040), the first line you should fill out is “Wages, salaries, tips, etc.”. And it requires you to attach the Form W-2. What is form W-2 and how to read and understand the W-2? This article will give a brief guideline.   Form W-2 is the annual “Wage and Tax Statement” that reports your taxable income from an employer to you and to the IRS. If you worked as an employee (part-time or full-time) in a tax year, your employer must give you a Form W-2, Wage and Tax Statement. Employers must mail or hand-deliver your Form W-2 to you no later than January. 31 for the previous tax year Basic Information   This part lists your employer’s basic information (e.g. EIN, name and address) and your […]