Viewpoints

For any Taiwan employees who intend to cease their employment, it is required to notify their own employers in advance. If the notice is failed to proceed, the employee is possible to recover the losses of employer, apart from meeting the exceptional terms, such as violence from employers, failure to proceed the remuneration pursuant to regulations, without notice of cessation of working from employees in advance.   In accordance with Labor Standards Act, the termination of employment (cessation of working) shall be notified to the employer in advance. The advance notice period begins from the day after the date of submission of termination, which is calculated as “day”. For example, an employee submits the cessation at 10:00 p.m. this evening, so tomorrow is the first day of notice period to calculate.   The advance notice period is as varied as different service period, the advance notice period including the weekend […]

Upon the occurrence of major transaction or the Taiwan companies’ merger invested by foreign entrepreneurs, MOEA usually request the applicant to present the independent expert opinion. Independent expert is referred as the third party like lawyer, accountant or securities broker who is not involved with the merger or others, so the qualification certificate of such experts is also required. In the condition of the expert being a foreigner, it is required to notarize the qualification certificate by the local notary offices.   The issuance of independent expert opinion letter should include the following contents:   The background and goal of issuance; The financial information of mutual parties, including the balance sheet, profit-and-loss statement, and shareholder equity changes statement; If one party to the merger is a foreign company, it shall state that the foreign company meets the cross-country merger requirements, including whether it is a company with actual business activities, […]

Taiwan electronic game arcade business is designed for publics to enjoy the puzzle and entertainment games. To manage the electronic game arcade business, “Electronic Game Arcade Business Regulations Act” was enacted by MOEA in accordance with the models of games and sites to manage and execute the registration, inspection, and punishment these related managements of electronic game arcade business. 1.    Game Arcade The kinds of game arcade are divided into “Puzzle”, “Ball Bearing”, “Entertaining”. It is not allowed to display unverified categories and announcement of game arcades or revise the verified categories of game arcades randomly. 2.    Site Electronic game arcade business is categorized as “General guidance” and “Restricted”. For general guidance, the stie is only allowed to pose puzzle game arcades for children, youths, and general publics to play. Reversely, the ball bearing, entertaining or additional particular puzzle game arcades are only to be posed and open […]

From January 1st 2024, the average monthly wages from TWD 26,400 are adjusted into TWD 27,470, increasing TWD 1,070, in growth rate 4.05%, announced by Taiwan Ministry of Labor. Furthermore, the average hourly wages are also adjusted from TWD 176 into TWD 183, increasing TWD 7 accordingly.   From the further explanation by Ministry of Labor, followed with the increasing of daily necessities price, the average wages must be risen as well to cover and maintain the basic requirements of livelihood.  Considering of the rise of annual CPI , increasing of 17 daily necessities, economic growth rate and overall financial phenomena, the adjustment of wages this time becomes a mandatory measure.   Why is it necessary to set up the average wages? The purpose of setting is to protect labors’ basic livelihoods as well as purchase capabilities to broaden and promote the gross domestic production.   According to the article […]

Upon the payment of service fees to foreign companies from Taiwan companies, it is common for the foreign company to apply for the avoidance of double taxation agreement, or the qualification of lower income in accordance with the article 25th in Income Tax Act. However, some foreign companies where the registered country doesn’t have an agreement with Taiwan, or the type of payment is not affiliated with “Any profit-seeking enterprise having its head office outside the territory of the Republic of China, and which is engaged in international transport, construction contracting, providing technical services, or machinery and equipment leasing, etc., in the territory of the Republic of China” one of the aforementioned categories would fail to be applicable to the lower tax payment rate. Despite of the application to “Taiwan income source recognition principle at the point 8th of article 8th in Income Tax Act” (referred to “recognition principle” hereafter), […]

According to “Company Act” in Taiwan, the shareholders of company limited by shares remains the rights of share transfer as their own resolutions. It is not required to declare or change the registration of share transfer. Instead, the share transfer in company limited shall be approved by the majority of shareholders. Here are two points to be aware of: To proceed the change of ownership (This is company internal procedure.) Upon the transfer of shareholder registration, it is required to submit gift tax payment certificate issued by the competent authority, verified tax-exemption certificate, or exclusions from the total amount of gifts certificate.   After transferring, what kinds of taxation procedures for transferor (supposed the original shareholder is an individual) to face are?   First of all, we have to confirm the type of organization is company limited by shares or company limited. In the condition of company limited by shares, […]

Thanks to the growth of self-media, more and more people choose to become an Internet celebrity as their career. Moreover, even professionals work as slashies on YouTube to gain extra profits apart from their original job. Some of them set up a studio and others are micro influencers to operate, so the types of income become much complicated than ever.   It is important to understand clearly of the types of incomes, which might be applicable to the withholding tax rate. For example, if the incomes are counted as royalties, the amount of tax exemption is TWD180,000 every year. For incomes from professional practice, like performers, it is applicable to the norms issued by Ministry of Finance to proceed taxation.   According to the research, the common incomes can be divided into 3 categories, including “Advertisements benefits-sharing”, “Subscription”, “Merchandise Sales”, “Activities Notices”, “Bonuses from clicking the advertisement link”, “Advertorial”, “Salary […]

tickets online, rentals, and buying cars..etc.. In order to accelerate the progress of purchasing, the sellers usually would draft a copy of standardized contract and circle the signature area for buyers’ arrangement. It is much easier to have a conflict with sellers in the condition that the buyers didn’t go through the standardized contract in detailed perusal.   Normally, the standardized contracts don’t have a fixed format. Except for papers, subtitles, posters, signboards, or online announcements and other ways are also counted as standardized contracts. For example, it is common to see the poster “No return, No exchange” around shops on the street as well as to tick the “Agree” button on the user agreement before playing online games, which are all categorized as the types of standardized contracts.   Here are three primary standardized contracts in Taiwan: Financial Consuming Standardized Contract Such as application of credit card or covering […]

Many technology industries and startup companies attract employees by implementing shares subscription. Currently, here are 5 kinds of remuneration measures for Taiwan employees as enacted in Company Act: 1. Remuneration stocks, 2. shares subscription and capital increase by cash, 3. Distributing buybacks, 4. Shares subscription certificate, 5. Restriction of shares subscription. Kindly remind that the other incomes of employees can be exempted after reaching the terms and obtain the stocks, but the company shall declare this fact to Taxation Bureau in accordance with Income Tax Act.   For employees who subscribed the shares by cash, the employee don’t have to combine it into the individual income tax upon the date of subscription in accordance with Income Tax Act, but upon the date of disposal (or stock option execution date) must exceed the subscription (or stock option exercise price) at the current price on that day The difference is taxed as […]

For companies which plan to set up a gymnasium or hold up sporty training classes, like street dance classrooms, gymnasium, yoga classrooms, or gym, the venues which square meters are under 300 are not required to apply for a special license. The company is able to start their business immediately after applying for the recognition of training sessions upon registration of company. The applicant should be aware about the following terms upon application: The address of sporty classThe address of sporty class shall be complied with the municipal or county examining standards. Normally, it is possible to understand if the address is qualified for application with the land registration transcripts and land ownership certificate. It should be noted that the virtual address is not allowed to set or hold up the sporty classes. Related licensesThe personnels shall hold the national physical fitness instructor certificate issued by Taiwan or foreign reputational […]