Viewpoints

Introduction and Issuance of Uniform Invoice (Part I) The purpose of this article is to introduce Taiwan uniform invoice and instruct how to issue. The introductions as below: Category of uniform invoice Principle of issuance How to issue a handwritten invoice How to deal with the wrong uniform invoice The article is divided into two parts for readers’ convenience to understand. Category of uniform invoice (1) Triplicate Uniform Invoice: A business entity issues this type of invoice to another business entity (B to B). (2) Duplicate Uniform Invoice: A business entity issues this type of invoice to a customer (B to C). (3) Cashier Invoice: A business entity issues this type of invoice to a purchaser (including business entities (B to B) and customers (B to C)), or it can be divided into triplicate form (stub copy, receipt copy, and deduction copy) and duplicate form (stub copy and receipt copy) […]

Migration is defined as a company changes the country where it is incorporated to another, which is equivalent to the change of nationality of company, but the juridical person does still survive. The concept is similar to immigration. In the circumstance that the foreign company owns a company in Taiwan, the application of migration shall be submitted to MOEAIC (MOEA Investment Commission) and submit the change of registration to MOEA (Ministry of Economy Affairs) upon approval obtained from MOEAIC.   How to submit an application to MOEAIC? For example, investor A where the country of incorporation in Malaysia changed into Brunei. The required documents to prepare in advance as below:   Board of member meeting minutes of change of incorporated country of Investor A. If the board of director resolution is required solely by the prescribed laws of incorporation country, it is fine to submit the resolution solely; The certificate […]

Taxation on Taiwan Youtuber   To comply with the regulations from Internal Revenue Service (IRS) in USA, Google published a new regulation about the tax withholding on global Youtuber last year, which means Taiwan Youtuber is required to be withheld the tax for the income incurred within the territory of USA by IRS as well as declare the individual income in Taiwan. So, a group of Taiwan Youtuber is concerned about the likelihood of double taxation.   Google aims at withholding the income from the views from USA on YouTube, including browsing the advertisements, YouTube Premium, super chats, super stickers, members and other profit-seeking channels. No matter where the location is, the creators are requested to provide Google with the US taxation information. If such information is failed to provide, Google will deduct the amount of income higher up to 24% for taxation, but if the taxation information is filled […]

Revision of Business Mergers and Acquisitions Act   The draft bill for revision of articles in Business Mergers and Acquisitions Act was passed on 24th February 2022. Basing on the suggestions from each industry to increase the flexibility of mergers and protection of shareholders’ powers as well as the statement from the letter no. 770 issued by Judicial Yuan, which the profits shall be distributed to each shareholder and director on time and other related stakes not stated on current Business Mergers and Acquisitions Act, the revision aims at protect the power of each shareholder and loosen the accessible scope of asymmetric mergers and flexibility of taxation this time, the revised essentials as below:   To reinforce the power and protection of each shareholder, the description of assembly of shareholders shall be stated the stake and pros or cons of mergers as well as broadening the scope of subscription for […]

Subsidy for Catering Industry in Taiwan   Owing to the severe pandemic situation, most of people are unwilling to dine in at restaurants gradually. This phenomenon makes the catering industries difficult to run their business continuously. Therefore, to ease the impact to these industries, The project of “Marketing Subsidy for Taiwan Catering Industries Impacted by Covid-19” was issued and accessible to apply for by Ministry of Economic Affairs (MOEA) from 2022/16/05. The maximum subsidy NTD100,000 from MOEA will be issued for those qualified applicants to promote their business. From the statement of MOEA, with the growing number of Covid-19 patients, the willingness for publics to dine in has been decreasing drastically, which makes the catering industries hard to operate normally. So, apart from the activity of best take-out box held by MOEA, which aims to help catering entities develop and promote the take-out box to maintain their business, the project […]

Taiwan Claw Crane Machine   Claw crane machine is designed for consumers to obtain their preferred commodity with the claw crane until catching it up infinitely or through the function of guaranteed prize in Taiwan.   According to “Electronic Game Arcade Business Regulation Act”, the machine which is defined as “Electronic game machines as stated at the item 1 or article 4th in this Act refer to amusement machinery that is controlled by use of electricity, electronics, computer, mechanics or other similar methods to generate or display sounds, lights, images, graphics or motions, or amusement machinery that controls injection of steel balls or steel sheets by the aforesaid methods.” shall be applied for a special license for operation additionally. Although the function of claw crane machine is involved with the abovementioned definition, the commodity is obtained through the fair and valuable consideration, so which cannot be affiliated as electronic game […]

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 […]