Taiwan

Taiwan Head Office and China Subsidiary Expense Apportionment   Due to the support and management of China subsidiary mainly from Taiwan head office, such as development of foreign market, purchase and comparison of quotation, legal affairs, accounting, human resource assignment, the expenses will be incurred from these abovementioned services. So, it becomes a significant issue to discuss if the costs shall be assumed wholly by the head office or any other way to share them.   Many China subsidiaries’ chef of finance are worried about whether the apportioned expenses would be defined as “Management Expense” between the head office and subsidiary or not, which is likely to be removed from the list of expenses or the transparency of apportionment computation basis is insufficient, which might bring the risk of permanent establishment to pay more amount of taxes in the future, or such paid taxes could not be offset in Taiwan. […]

Taiwan Branch Office Business Place Pre-search   To establish a Taiwan company, a business place within the territory of Taiwan for registration is required. Suppose that the location of business place is at Taipei City, the procedure of “Business Place Pre-search” shall be finished preliminarily to confirm if the intended business items are complied with the urban plan and other related prescribed laws. If the business does not meet the requirements of business items, the company is not allowed to establish.   The processing time of business place pre-search requires about 2-5 days, since the maximum number of case to verify and issue is solely 180s per day by MOEA. Therefore, in the condition of the business place confirmed, it is suggested to proceed the pre-search in advance to avoid delaying the schedule of company establishment afterwards.   In addition, the following categories of industries may be visited on the […]

Computation of Period and Wages of Advance Notice Employers terminate the employment contract with the labor by the prescribed laws or such labor resigns voluntarily shall notify the date of termination of employment in advance in accordance with the item 1 of article 16th in Labor Standards Act. The advance notice is as varied as the seniority of each labor:   The notice shall be made by 10 days in advance for the seniority more than 3 months but less than one year. The notice shall be made by 20 days in advance for the seniority more than one year but less than 3 years. The notice shall be made by 30 days in advance for the seniority more than 3 years.   In the circumstance that an employee who has fulfilled the employment contract more than 3 years resigns voluntarily shall notify the employer by 30 days in advance; […]

Attract Foreign Talents to Stay in Taiwan   To curb the phenomenon of shortage of technical labor forces these years and respond to the required service term for excellent and professional foreign talents to stay in Taiwan which is stipulated in Employment Service Act, Taiwan Ministry of Labor negotiated with related unions and organizations to release openings in fishery, manufacturing, contracting, agriculture and caregiving for foreign students with associate degrees and foreign labors who have been serving in Taiwan for more than 6 years. It is promising there would be more openings in different industries upon the necessity of financial improvement in the near future.   For foreign labors who have been staying and working in Taiwan more than 6 years and students who obtained the associate degree as well as qualified for the salary and techniques terms, the employer can apply for the work permit to undertake the middle-class […]

Employees Health Examination Tax Withholding and Return   According to “Occupational Safety and Health Act”, it is mandatory for employers to implement health examination on employees. In the condition of employees whose content of works is potential to damage their health or particular subjects from other government entities, the particular health examination items still have to be taken as well. Employers shall take the responsibility to restore the records of health examination and pay the expenses.   In regards to the taxation, the expenses of regular and special health examinations can be exempted from listing into the employees’ salary income, which would not make the employees face a huge tax burden, but the application of withholding and tax return by employers shall still take the nature of paid subjects into consideration upon the payment of health examinations to contracted medical institutions. The way of applications can be divided into the […]

Transactions of Artworks in Taiwan   From 21/05/2021, in order to promote the development of arts and cultures industry, the income from transactions of individual artworks approved by Taiwan Ministry of Culture is allowed to proceed separate taxation for deduction.   First of all, the company shall submit an application to Ministry of Culture before holding the event by one month. From the statement issued by Taxation Bureau, the arts and cultures industries approved by Ministry of Culture which hold an exhibition and auction can submit an application to Ministry of Culture to assign the practitioners themselves to be the taxpayers in accordance with “Culture and the Arts Reward and Promotion Act”. That is, the practitioner can apply to the effective taxation rate in 6%, pursuant to taxation rate in 20% to deduct the amount of income in 6% of dealing price, in the circumstance of deduction of dealing price […]

Quarantine Hotels to List as Traveling Expenses Due to the demand of business, employees have to go abroad back and forth. According to the policy issued by Taiwan Central Epidemic Command Center, those who get back to Taiwan from foreign countries have to stay at the quarantine hotels for isolation. However, many of employers are worried about if the board and lodging expenses could be listed and declared or not, since the period of stay at quarantine hotels are not counted as traveling abroad basically. Although there is no certain prescribed regulation or statement issued by Ministry of Finance, the period of quarantine for employees is still recognized as the part of traveling schedule, regardless of whether any business is assigned or arranged for these employees. Therefore, the board and lodging expenses incurred within the period of stay at quarantine hotels for employees shall be responsible for Taiwan company and […]

Revision of Taiwan Employment Insurance Act   To increase the benefits for labors and make the insurance sources more accessible by Ministry of Labor, the labors who apply for unemployment benefit, vocational training living allowances, and parent leave allowances can be applicable to the following new regulations from 18/01/2022 for improvement of labors’ living quality.   Broaden the regulations of unemployment benefits and vocational training living allowances for dependents For the economic concern of unemployment labor’s family, the item 1 of article 19th in Employment Insurance Act is revised. “Parent without salary income” of insured person is qualified for the application of unemployment benefits and vocational training living allowances. The applicants shall submit a photocopy of household certificate, which is stated the information of raised parent, or the other photocopy of certificate of identification with the same legal effect. According to the new policy issued by Ministry of Labor Insurance, […]

Foreign Businessmen Visit Taiwan According to the statement of Ministry of Health and Welfare, the policy for foreign businessmen to visit Taiwan is much easier from 07/03/2022 since the global situation of Covid-19 becomes stable. The required period of quarantine is shortened from 14 to 10 days. The start day of quarantine is from the day of final contact to 10 days later. The quarantined person tested negative upon the final day of quarantine is allowed to be exempted from quarantine and proceeds self-health monitoring for the following 7 days. The measures for businessmen to visit Taiwan this time as below: Foreigners The applicant shall visit the Taiwan ambassador for special permit for the purpose of research, investment, fulfillment of contract, and employment these mentioned business activities. Residents from Hong Kong and Macau For fulfillment of contract or internal deployment these mentioned business activities, the invited persons from Mainland China […]

The Difference Between TWSE Listing, TPEx Mainboard Listing and Emerging Stock Companies in Taiwan   TWSE Listing, TPEx Mainboard Listing and Emerging Stock companies in Taiwan are all referring to companies with outstanding shares held by outsiders’ investors. The main differences are the listing criteria and trading rules.   Emerging Stock company refers to the companies which shares are issued and traded in the emerging stock market, and neither is TWSE Listing nor TPEx Mainboard Listing. Before a company registers for TWSE or TPEx Listed, it must first register as an Emerging Stock company for 6 months or above and listed on the Emerging Stock Board. There are no restrictions on the company size, capital amount, duration of incorporate existence, profitability for the Emerging Stock company so far, as long as the company obtain recommendation from two or more brokers. Therefore, it is suitable for companies in their early stage […]