Viewpoints from Kaizen

Taiwan implemented the “Act for the Recruitment and Employment for Foreign Professionals” to attract and retain foreign professionals in Taiwan and create a more welcoming work and residency environment in 2018. This act introduced the Employment Gold Card, a single document that integrates a work permit, residence visa, Alien Resident Certificate (ARC), and re-entry permit. This card is aimed at professionals with specialized skills in fields such as technology, economics, education, culture and the arts, sports, finance, law, architecture, defense, and digital industries, or those recognized as having special expertise by relevant authorities in consultation with sectoral agencies. Several benefits of the Employment Gold Card: An open-ended personal work permit that does not require employment with a specific employer and allows freedom in job searching, changing jobs, and taking on part-time work. Cardholders’ spouses and minor children can apply for dependent residency in Taiwan, and the duration of stay for […]

The New Work Trend in the Post-Pandemic Era The global impact of the COVID-19 pandemic has transformed the way we work and live. As remote work becomes the new norm, traditional office spaces are no longer a necessity. With just a laptop in hand, professionals can now work seamlessly from anywhere, enjoying the flexibility of location-independent jobs. This shift has inspired many professionals to break free from traditional workplaces and embrace the “Digital Nomad” lifestyle, blending work with travel to explore the world, seek freedom, and spark creativity.   What is a Digital Nomad? A Digital Nomad is someone who combines work and travel by utilizing digital skills to work remotely, free from the constraints of time and place. These individuals choose living environments that best suit their needs while enriching their lives through global travel. Digital nomads typically fall into three categories based on their work style: Remote Employees: […]

Labor regulations in Taiwan undergo revisions every year in response to social and economic developments, as well as changes in the labor market. In 2025, Taiwan’s labor regulations will undergo several significant changes aimed at further protecting workers’ rights, improving working conditions, and promoting corporate compliance. The following are the key changes in labor regulations for 2025:   Adjustment of the Minimum Wage The labor regulations for 2025 include an adjustment to the minimum wage. Based on the current economic conditions and the cost of living, the minimum wage will be moderately increased. This measure aims to ensure that workers have sufficient income to meet their living expenses and improve the economic conditions of low-wage workers. Starting in 2025, the monthly minimum wage will be TWD 28,590, and the hourly minimum wage will be TWD 190. Revision of the “Monthly Contribution Classification of Labor Pension” and Automatic Adjustment In line […]

The Mid-Autumn Festival is one of the most important Chinese festivals, and many companies take the opportunity to present gifts to their clients or employees. In Taiwan, if a company distributes its own inventory as gifts, this should be regarded as the sale of goods, and an invoice must be issued based on the sale price, with business tax declared and paid accordingly. However, if the items were originally purchased with the intention of being given as gifts, and the input tax was not claimed as a deduction against output tax, the company is exempt from issuing an invoice.   Here’s an example: Company A purchased 100 units of inventory at a total cost of TWD 100,000 with input VAT amounting to TWD 5,000. At the time of purchase, the input VAT of TWD 5,000 was claimed as a deduction against the output VAT. Later, when Company A decided to […]

In Taiwan, companies can be categorized into three types: limited company, limited company by shares and foreign branch office. According to Taiwan’s Company Act, when establishing a company, the founders (shareholders) must hold a meeting to determine the company’s capital amount. The funds should then be transferred to the company’s designated bank account, and a certified public accountant must complete the capital verification before applying for company registration. The capital amount can be understood as the initial operating funds registered for the company. Currently, there is no minimum capital requirement; however, it must be reasonably sufficient to cover the company’s expenses for the first year, including rent, salaries, office equipment, and other costs.   In Taiwan, a limited company has only a total capital amount. Once the shareholders have determined the capital amount in the articles of incorporation, the actual funds must be in place in order to establish the […]

To determine if an employee is a tax resident in Taiwan, various factors such as the number of days they reside in Taiwan, whether they have a residence, household registration, and whether they work or do business in Taiwan should be considered. Generally, this can be categorized into three scenarios. If a company sends employees abroad for expansion, it is important to change in the employee’s tax status and handle salary income withholding at the correct tax rate. First, if an individual has household registration in Taiwan and resides in Taiwan for a total of 31 days or more, they are considered as resident. Second, if an individual resides in Taiwan for more than one day but less than 31 days, if the focus is living and economic is within Taiwan (e.g., they have labor and health insurance, their spouse and children remain in Taiwan, etc.), they can also be […]

The basic particulars of general companies (non-publicly listed companies) in Taiwan can be found on the Taiwan Business Registration Office website. These basic particulars include basic information such as company name, company address, names of directors, capital amount, and business items. However, detailed shareholder information cannot be accessed through this search.   To access documents beyond the publicly available information, such as company registration forms, article of association, board meeting minutes, and auditor’s reports, these documents are considered non-public and must be applied for either in the name of the company in Taiwan or on behalf of an interested party. Applications in the name of an interested party require supporting documents proving the interest, along with identity documents and an explanation of the reasons for the application. Supporting documents may include court summonses, judgements, lawsuit proof documents, contracts, negotiable instruments, proof of dishonor, or shareholder certificate documents. If these documents […]

Mr. Li has had a knack for financial management since his youth. During several economic recessions, he took the opportunity to enter the stock market and continued to hold his investments long-term after marriage. As he approached retirement, he had accumulated 100 shares of Hon Hai (Foxconn) and 100 shares of Taiwan Semiconductor Manufacturing Company (TSMC). As he entered his senior years, he began to think about estate planning. In June 2023, he gifted his 100 shares of Hon Hai stock to his wife. Unfortunately, in June 2024, Mr. Li was diagnosed with cancer and was given a life expectancy of only one more year by doctors. During his illness, his wife sold all the Hon Hai shares at TWD 130 each to cover medical expenses. Knowing his time was limited, Mr. Li decided to plan for the inheritance taxes and thus intended to transfer his 100 shares of TSMC […]