Viewpoints
2021-06-18
The Important Notice for Tax Reduction in Taiwan (For whom paid tax in China) For Taiwanese who have any source of income in China, these citizens should declare the individual income tax in May annually with the tax incurred in China jointly. Therefore, If the tax in China has already declared and paid, the tax payable in Taiwan can be deducted from to avoid the event of dual imposition of tax occurring. To whom he/she takes part in any kind of business activity between Taiwan and China regularly, if he/she is an official tax resident in Taiwan, instead of in China, the individual income tax should be declared necessarily. Most of the income in China is able to be his/her tax withheld at source, such as the salary withholding statement in China, which can be the tax payment certificate. For example, an office worker who has to commute from […]
2021-06-02
Due to the surge of COVID-19 infections in Taiwan, the Central Epidemic Command Center currently raised the COVID-19 alert to Level 3, gathering of over 5 people in indoor and over 10 people at outdoor is banned. The Financial Supervisory Commission promulgated that starting from May 24, 2021 to June 30, 2021, all public companies (including listed, OTC, emerging and foreign company listed in Taiwan), shall suspend the holding of AGMs. The key measures are summarized as follows. Suspension Period: From May 24, 2021 to June 30, 2021, during which public companies shall not convene their annual general meetings (AGMs). Statutory requirements that companies listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) must convene their AGMs by the end of June and the penalties for failure to meet such requirement are exempted. New date and venue of the AGM to be held in July or August […]
2021-05-06
Chinese Tax Translation of Foreign Exchange Rate in China In accordance with Accounting Law of China provision 12, RMB should be the bookkeeping base currency. If there are other currencies dominate in business operation, one of them can be the base currency for bookkeeping. But it shall exchange into RMB when compiling Accounting Financial Report. However, Chinese Tax Law and Accounting Law have different provisions on Foreign Exchange Conversion, as well as the exchange rate for different tax types. The following are the provisions on Foreign Exchange Conversion of several main types of taxes in China: Value-added Tax, Consumption Tax, Resource Tax, Land Appreciation Tax Enterprises shall convert any foreign currency into RMB if have the revenues subject to above tax categories. The exchange rate shall be the PBC’s exchange rate on the day of the sales or on the first day of the month. Enterprises shall determine […]
2021-05-06
Introduction to Seals and Chops of a Hong Kong Company In respect of a company registered in Hong Kong, the “chops” we use on a daily basis are the signature stamp and the small round chop. The company name or the word of “For and on behalf of” is engraved on the chop, and usually be used when the authorized person signs the commercial documents. However, both the old Companies Ordinance (previously Cap. 32) of the Hong Kong legislation and the new Companies Ordinance (Cap. 622) only provide rules for the adoption and use of the “Common Seal”. Only a seal that is made, adopted and used in accordance with the Companies Ordinance (“CO”) and articles of association is the Common Seal of a company. In other words, the CO does not provide provisions on the signature stamp nor the small round chop. These two seals are […]
2021-05-06
Comparison of Subsidiary and Branch Office in Hong Kong The subsidiary company (in the form of a company limited by shares) and Non-Hong Kong company (known as branch office) are the two most commonly used investment vehicles for foreign companies to establish and carry out business in Hong Kong. A Non-Hong Kong company, also commonly known as branch office, is considered an extension of the foreign company and is not a separate legal entity of its own. This means that the foreign company is responsible for the liability of its non-Hong Kong company. Additionally, the foreign company can also be sued in Hong Kong in the case of any dispute. A branch office is also subject to same compliance requirements applicable to a subsidiary, except that of auditing of financial statements. In accordance with the Companies Ordinance (Chapter 622 of Hong Kong laws), the annual financial statements […]
2021-04-21
Supplementary Premium for Dividends Income in Taiwan When an individual in Taiwan obtains dividends income, even though it would not be withheld in the income tax, it may be deducted for 2nd generation National Health Insurance (NHI) supplementary premium. If the taxpayer declares directly with the account credited amount, it may cause an omitted declaration and may face a penalty for supplementary tax payment. For example, Mr. Cheng is a major shareholder of Company A, who received TWD618,610 as dividends in 2018. However, since the amount has reached the deduction threshold, an amount of TWD11,815 has been deducted as supplementary premium for 2nd generation NHI. The amount that Mr. Cheng actually received through bank deposit is TWD606,795. A problem raised during the next tax return declaration. Since, Mr. Cheng did not receive a physical stub for the dividend’s payment due to digitalized working procedures, he revised the […]
2021-04-21
Summary of Deduction Items and Standard for CIT in China(Continued 2) No. Deduction Items Standard of Deduction/Proportion of Limit Remark 32 Unverified provision Non-deductable 33 Depreciation of fixed assets Deductable within the prescribed scope Not exceed the minimum period of depreciation 34 Depreciation of productive biological assets Deductable within the prescribed scope 10 years for woods, 3 years for livestock 35 Amortization of intangible assets Amortization period not less than 10 years General intangible assets Amortizion based on the period stipulated by the law or contract Intangible assets obtained from investment or purchase Non-deductable Goodwill created by the enterprise itself Non-deductable Intangible assets irrelated to the business operation 36 Long term deferred expense Deductable within the limit amount 1. The amortization for reconstruction expenses of buildings that have been fully depreciated shall be apportioned according to the estimated useful life 2. The amortization for reconstruction expenses of […]
2021-04-21
SINGAPORE BUDGET 2021 COVID-19 Resilience Package In the 2021 Budget Statement, the government will launch the 11 billion COVID-19 Resilience Package which will continue to assist Singaporeans and Companies that have been hit hard by the pandemic to tide over the difficulties. The details are as below: Safeguarding public health and re-opening safely 4.8 billion billion of the COVID-19 resilience package will be set aside for public health and safe-reopening measures, covering costs for vaccination and contract tracing, testing and isolation facilities. Support workers and businesses Job Support Scheme (JSS) will continue to be provided for up to the next six months from Apr until September for sectors that continue to be hard hit, such as those in Tier 1 – aviation, aerospace and tourism sectors. The JSS extension will cost 700 million. S$700 per month for 3 months, for employees who have lost their jobs […]
2021-04-21
How to Lawfully Adjust the Post of an Employee in China? According to Article 35 of the Labour Contract Law of the PRC, the labour contract cannot be amended unless the employer the employee have reached a consensus on such amendment. The post of the employee is an essential provision of the labour contract. The employer should in principal negotiate with the employee and reach a consensus before adjusting the post of the employee. The employer may encounter some legal risks if it fails to reach a consensus with the employee and adjust the post of the employee unilaterally. In practice, the employer usually stipulates in the labour contract that the employer is entitled to adjust the job description or position of the employee at any time if needs arise in its production and operation. Is it possible for the employer to adjust the post of the employee […]
2021-04-21
Comparison for LLC and C-Corporation in Delaware This article will compare the difference between Delaware-Corporation and LLC from structure, registration requirements, and tax treatment. 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 obligations of the business from the entrepreneurs into the company itself. 2. LLCs offer […]