Viewpoints
2021-04-19
Summary of Deduction Items and Standard for CIT in China(To be Continued) No. Deduction Items Standard of Deduction/Proportion of Limit Remark 1 Employee’s salary Aactual salary amount Employment, reasonable salary amount Additional 100% deduction Salary of disabled employees 2 Welfare 14% Gross salary of the employees 3 Employee’s education expenses 8% Gross salary of employees, the excess part can be carried forward in the following years Full amount Operator training fees for nuclear power generation enterprise Full amount Employee training fees for software enterprise 4 Labour union funds 2% Gross salary of the employees 5 Entertainment expenses MIN（60%，5‰） 60% of the acutal entertainment expense versus 5‰ of the sales revenue, the lower one is allowed to be deducted；The dividend, equity transfer income of equity investment enterprise can be calculated as sales revenue Advertisement expenses & propaganda expenses 15% Sales revenue of current year, the excess part can be […]
2021-04-19
Impact of Interrupting Social Insurance Payment in Shenzhen Basic social insurance benefits will be affeted (1) Unable to enjoy medical insurance benefits Shenzhen resident will be unable to enjoy medical benefits from the next month after stopping payment of social insurance.The accumulated payment period will be regarded as zero if stop the payment over 3 months, which also will affect the amount of hospitalization reimbursement. (2) Unable to enjoy maternity insurance benefits Maternity insurance refers to medical allowance offered to female employees during their preganent period as well as after childbirth, which shall be enjoyed after a full year payment of social insurance. Female employees are not allowed to enjoy the maternity insurance benefits if they fail to make one consecutive year of social insurance payment before delivery. (3) Individuals are not allowed to enjoty severe disease & employment injury insurance benefits if stop […]
2021-04-19
Comparison for LLC and C-Corporation in New York This article will compare the difference between New York-Corporation and LLC from structure, registration requirements, and tax treatment. And give you couple of examples of tax calculation for your reference. Structure Corporations Limited liability Companies No. of Shareholder/ Member At least 1 Shareholder At least 1 Member No. of Director 1 N/A Characteristics 1. Corporations are intended to provide limited liability; shareholders are generally not individually liable for the debts and obligations of the company. 2. Corporations are assessed corporate taxes on their own profits. Shareholders are taxed separately, if the company distributes dividends to them (or if it pays them a salary, in the case of employee owners). 3. Corporations are allowed to keep $250,000 in retained earnings without accumulated earnings tax. 1. LLCs are intended to provide limited liability for founders; moving liability for debts and […]
2021-04-19
Attention to the List Price for Taxable Goods or Services in Taiwan Business models and styles have been more diversified nowadays. No matter the business is run online or in physical stores, the list price of taxable goods or services should include business tax in it. However, some online stores claim that they do not include business tax in the list price and require an additional 5% business tax charge to their clients, which lead to consumption disputes. Taiwan National Taxation Bureau indicates that business tax is a kind of consumption tax. When a company is selling taxable goods or services, it should include the consumption tax in the selling price and collect it from the consumers. Therefore, according to the Value-added and Non-value-added Business Tax Act Article 32 Paragraph 2 and 3, the list price for taxable goods or services should include business tax. In other words, […]
2021-04-19
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 […]
2021-04-19
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 […]
2021-04-19
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 […]
2021-04-19
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 […]
2021-04-19
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 […]
2021-03-31
The Impact of Taiwan Civil Code New Amendment on Taxation According to Taiwan Civil Code, the age of majority has been lowered to 18 years old. The Taiwan Executive Yuen also amended the regulations of tax allowance in the Income Tax Act and the Estate and Gift Tax Act accordingly. In terms of income tax, what is affected is the dependent support regulations. According to the previous version, the taxpayer’s children who are under 20 years old or over 20 years old but are still in school, physically or mentally disabled or unable to earn a living can be filed as dependent support by their family, which would increase the tax allowance for the declaring household. After the Civil Code is amended, the tax act no longer defines the age of the children being supported, instead it follows the Civil Code to examine if the target is an […]