Advantages and Disadvantages of Setting Up an E-commerce Company in Taiwan
Taiwan is an attractive destination for foreign e-commerce businesses, thanks to its vibrant digital economy, high internet penetration rate, and strategic location in Asia. However, like any business decision, establishing a company in Taiwan comes with its own set of advantages and disadvantages. Below, we explore the pros and cons of setting up a foreign e-commerce company in Taiwan.
A Guide to Business Income Tax Filing: Essential Knowledge for Entrepreneurs
As May approaches, tax filing season begins. If you’ve recently started a business, terms like Business Income Tax and Business Tax may seem confusing. Filing taxes correctly is crucial for compliance and financial health. This guide explains what Business Income Tax is, how to file it, and how it differs from Business Tax.
Setting Up a Business in Taiwan? Here’s How to Apply for Your Work Permit & ARC
Taiwan offers a thriving business environment for foreign entrepreneurs looking to establish and grow their ventures. Once a business is successfully registered, obtaining a work permit and an Alien Resident Certificate (ARC) becomes essential for legal employment and residency. This guide provides a step-by-step overview of the application process, eligibility criteria, and required documentation to help foreign professionals navigate the system efficiently.
The Introduction of Typhoon Leave and its Impact on Business
In Taiwan, employers are required by law to enroll employees in Labor Insurance (LI) and National Health Insurance (NHI). These programs provide vital protections, including healthcare and income replacement in case of illness, injury, or retirement. This guide outlines the key responsibilities of employers, the consequences of non-compliance, and why meeting these obligations is essential.
How Foreigners Can Establish an Interior Design Company in Taiwan
When setting up a business in Taiwan, understanding and integrating the trends of Generation MZ (comprising Millennials born between 1981-1996 and Gen Z born between 1997-2012) is crucial. Their values, consumption habits, and work styles are reshaping the modern business landscape. In this article, we will explore how to apply these trends when establishing a company in Taiwan, in order to build a business model that meets the needs of Generation MZ.
Maximizing Tax Efficiency for Profit-Seeking Enterprises: Essential Strategies for Business Growth (Part 2)
In the previous article, we discussed essential tax-saving strategies such as selecting the optimal business structure, reporting deductible expenses, choosing the right inventory valuation method, estimating allowances for bad debts, and depreciation techniques. In this follow-up, we’ll explore advanced strategies, diving into areas like managing assets, leveraging tax treaties, and utilizing investment credits. These insights will help businesses maximize tax benefits and maintain compliance.
Adapting to the Business Trends of Generation MZ in Taiwan: A Guide to Building a Modern Company
When setting up a business in Taiwan, understanding and integrating the trends of Generation MZ (comprising Millennials born between 1981-1996 and Gen Z born between 1997-2012) is crucial. Their values, consumption habits, and work styles are reshaping the modern business landscape. In this article, we will explore how to apply these trends when establishing a company in Taiwan, in order to build a business model that meets the needs of Generation MZ.
Taiwan Business Tax on Cross-Border Electronic Services: Key Insight
As the digital economy continues to expand, Taiwan has implemented specific measures to ensure fair taxation of cross-border electronic services. Since May 1, 2017, the Ministry of Finance (MOF) in Taiwan has required foreign providers of electronic services to comply with business tax regulations. These rules aim to create a level playing field between domestic and international service providers while ensuring the government’s ability to generate revenue from the digital economy. Businesses and consumers engaged in digital transactions with overseas companies now operate under a structured framework, promoting transparency and consistency in taxation.
Comprehensive Guide to Work Permits in Taiwan for Foreign Professionals
Taiwan is a rapidly developing economy with a rich and diverse culture, attracting professionals and skilled workers from around the world to build their careers. Foreign nationals who wish to work legally in Taiwan typically need to obtain a valid work permit. A Taiwan work permit is an official document that allows foreign nationals to legally work in Taiwan. To apply, the employer in Taiwan must submit the application to the Ministry of Labor. Holding a work permit is a prerequisite for obtaining a residency permit in Taiwan. Employers and applicants must comply with Taiwan’s regulations, including ensuring the job position aligns with the qualifications and conditions stipulated for foreign workers. Failure to obtain the work permit before starting work can lead to penalties for both the employer and employee. This article introduces the main types of work permits available in Taiwan, the application requirements, and relevant regulations to help prospective foreign workers understand the process.
Withholding Tax for Electronic Services and Royalties: Key Regulations and Compliance in Taiwan
With the increasing frequency and diversity of cross-border transactions, the demand for procuring electronic services from abroad has only surged, particularly due to the acceleration of digital transformation during the COVID-19 pandemic. Payments made to foreign companies for services provided to Taiwanese businesses via the internet or other electronic methods are generally regarded as Taiwan-sourced income and are therefore subject to tax withholding.
Foreign companies earning income from providing services through online or other electronic methods may apply to the tax authority for approval of the applicable net profit ratio and the domestic contribution percentage, then used to calculate taxable income and withholding tax. If the applicable net profit ratio multiplied by the domestic contribution percentage exceeds 15%, and the provided services meet the criteria of Article 25 of the Income Tax Act regarding technical services, the foreign companies may also apply to calculate withholding tax based on 15% of revenue from Taiwan.
Furthermore, if the foreign company’s country has signed a Tax Treaty with Taiwan, the income derived from such services may, under qualifying conditions, be eligible for exemption as business profits. These are currently common methods to effectively reduce the actual withholding rate for cross-border electronic services.