Viewpoints

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 […]

Inspection on Online Sellers by Taiwan Taxation Bureau   In the past, the tax inspection on online sellers by Taiwan Taxation Bureau is conducted passively, which main source of investigation is though the public reports. From 2022,  The online tax inspection system (Referred to public search system) from financial data center is furnished to investigate by Taxation Bureau proactively. It was hard to control all information of group buying held by sellers in the past, but with this system, the  information of personal page, fan page or club can be found via “Key Word” and ranked the page with higher number of fans or number of likes to make an inventory to investigate furtherly by Taxation Bureau in Taiwan.   For the growth of group buying for Taiwan cosmetic products, perfumes or soaps, most of sellers are involved with this business on each famous online platform, but fails to register […]

Tax Regulations on Holding a Year-end Party in Taiwan   In accordance with “Business Tax Act”, the prize which is purchased to reward the employees is not allowed to be listed as input tax to offset the output tax. A majority of Taiwan companies usually provide the employees with dinning party, lucky draws the welfare of these kinds, but the nature of these welfares is affiliated with rewarding to the employees, which means the input tax cannot be offset.   For instance, company A held a year-end party on December in 2020 and purchased a variety of prizes for luck draws. The company declared the offset of input tax to output tax incorrectly, which made this company suspicious of illegal declaration intentionally by Taxation Bureau in Taiwan. In this case, the company not only had to recover the amount of taxes, but also faced the punishment of being fined no […]

Increase of Independent Director Seat for Listed Company The 3.0 version of permanent development program of company was issued by Taiwan Securities and Futures Bureau which aims to reinforce the overall operation and power of directors. The program is suitable for all listed companies in Taiwan. The points of this program as following:   Due to a majority of listed companies in Taiwan affiliated as family business, it is expected to set up more seats of independent directors as well as to regulate that the seats of independent directors shall not be less than one-third seats gradually in order to reinforce the function of supervision by board of directors furtherly. Schedule of Program: 2022 Year The guideline for listed company to manage: https://cgc.twse.com.tw/evaluationCorp/listCh。 2023 Year From the related articles revised by Taiwan Securities and Futures Exchange and Purchase Center, it is required that the amount of paid-up capital shall be […]