Viewpoints from Kaizen

Several types of shares without certificate, but registration in TDCC (Taiwan Depository & Clearing Corporation), are still deemed as legal issued shares. Such shares are solely levied on transfer tax. However, other types of transacted stocks without certificate are deemed as property transactions. Such transaction is not levied on transfer tax, but levied higher on individual income tax. Here is a similar case occurred recently. A company which original capital is 6 million in TWD. After years gone by, the company is quite reputational and successful, but the founder is too elder to manage this company and decide to transfer his company by stocks in 14 million in TWD to others. Nevertheless, the issued stocks were not certificated by banks, neglectful of the article 162 in “Company Act”, which means it is not a legal stocks transaction, despite of the success of this transfer. The nature of this transaction is […]

The Important Notice for Tax Reduction in Taiwan (For whom paid tax in China) ​ For Taiwanese who have any source of income in China, these citizens should declare the individual income tax in May annually with the tax incurred in China jointly. Therefore, If the tax in China has already declared and paid, the tax payable in Taiwan can be deducted from to avoid the event of dual imposition of tax occurring. To whom he/she takes part in any kind of business activity between Taiwan and China regularly, if he/she is an official tax resident in Taiwan, instead of in China, the individual income tax should be declared necessarily. Most of the income in China is able to be his/her tax withheld at source, such as the salary withholding statement in China, which can be the tax payment certificate. For example, an office worker who has to commute from […]

Due to the surge of COVID-19 infections in Taiwan, the Central Epidemic Command Center currently raised the COVID-19 alert to Level 3, gathering of over 5 people in indoor and over 10 people at outdoor is banned. The Financial Supervisory Commission promulgated that starting from May 24, 2021 to June 30, 2021, all public companies (including listed, OTC, emerging and foreign company listed in Taiwan), shall suspend the holding of AGMs.  The key measures are summarized as follows. Suspension Period: From May 24, 2021 to June 30, 2021, during which public companies shall not convene their annual general meetings (AGMs). Statutory requirements that companies listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) must convene their AGMs by the end of June and the penalties for failure to meet such requirement are exempted. New date and venue of the AGM to be held in July or August […]

Supplementary Premium for Dividends Income in Taiwan   When an individual in Taiwan obtains dividends income, even though it would not be withheld in the income tax, it may be deducted for 2nd generation National Health Insurance (NHI) supplementary premium. If the taxpayer declares directly with the account credited amount, it may cause an omitted declaration and may face a penalty for supplementary tax payment.   For example, Mr. Cheng is a major shareholder of Company A, who received TWD618,610 as dividends in 2018. However, since the amount has reached the deduction threshold, an amount of TWD11,815 has been deducted as supplementary premium for 2nd generation NHI. The amount that Mr. Cheng actually received through bank deposit is TWD606,795.   A problem raised during the next tax return declaration. Since, Mr. Cheng did not receive a physical stub for the dividend’s payment due to digitalized working procedures, he revised the […]