How Does Taiwan’s Tax Authority Use Cash Flow, E-Invoices, and Cross-Border Data Matching to Identify High-Risk Businesses?
Taiwan’s tax authority identifies high-risk businesses by comparing reported tax filings with independent data sources, including e-invoices, bank and payment flows, online platform records, customs data, and cross-border tax information. If the numbers do not match, the business may be flagged for review or audit.
How Are Foreign Investors Establishing a Travel Agency in Taiwan?
Foreign investors can establish a travel agency in Taiwan, but they must complete both the foreign investment process and the tourism-sector licensing process.
Taiwan classifies travel agencies into three types: consolidated, Class-A, and Class-B, and each type has a different business scope and capital requirement.
Taiwan Withholding Tax for Foreign Companies: Service Income & Business Profit Guide (2026)
Foreign companies without a fixed place of business or business agent in Taiwan are generally subject to:
A withholding tax of up to 20% on Taiwan-sourced service income.
However, instead of accepting this flat withholding, companies may apply for a more favorable tax calculation method, which allows tax to be assessed on deemed profit rather than gross income.
What Should You Be Aware of When Importing Beauty Devices into Taiwan?
When importing beauty devices into Taiwan, businesses must first determine whether the product is classified as a cosmetic device or a regulated medical device under TFDA rules. If it falls under medical device regulation, prior registration, product licensing, and a licensed local importer are required before customs clearance. Non-compliance can result in shipment delays, penalties, or complete import rejection.
How to Handle Layoff Reporting, Notice, and Final Payroll Settlement in Taiwan
A layoff in Taiwan involves more than issuing a termination notice. In most cases, employers must confirm the legal basis for termination, determine the correct notice period, complete any required layoff reporting, calculate severance properly, and settle final salary items such as unused annual leave and overtime. If the case reaches the threshold for a mass redundancy, additional filing and notification requirements may also apply.
What are the trends in e-commerce and third-party payment platforms in Taiwan?
Taiwan’s e-commerce and third-party payment market is evolving from simple online transactions into a broader digital commerce ecosystem. The market is no longer defined only by whether consumers shop online. Instead, competition now centers on how smoothly people can move between discovery, purchase, payment, delivery, loyalty programs, and repeat spending across channels.
Why Does “Too Expensive” or “Too Cheap” Trigger a Tax Audit in Taiwan? Understanding Transfer Pricing Risks in Taiwan Cross-Border Transactions
A transaction priced too expensively can erode taxable income in the buyer’s jurisdiction. In Taiwan, authorities may challenge high intercompany prices for inventory, management services, royalties, support charges, or intercompany interest. The audit question is usually straightforward: would an independent company really have paid this much for the same benefit?
What Is Taiwan’s Cosmetic PIF Regulation and How Does It Impact E-Commerce Sellers in 2026?
Starting this July, cosmetic products sold in Taiwan—whether through physical stores or e-commerce platforms—must have a complete Product Information File (PIF) prepared and maintained in compliance with regulatory standards. This requirement significantly increases compliance responsibilities for online sellers, who must now ensure that every listed product meets documentation, safety, and labeling requirements before sale.
VAT on Purchase Returns and Allowances in Taiwan: How Businesses Should Report Input Tax Reductions Correctly
In Taiwan, if a business has already claimed input VAT on a purchase, any later purchase return or allowance must be reported as a reduction of input VAT in the same filing period in which the event occurs.
How Foreign Investors Can Invest in Your Taiwan Company
This essay explores how foreign investors can invest in a Taiwanese company, focusing on legal structures, investment mechanisms, regulatory requirements, and key considerations for successful investment in Taiwan.