Taiwan

FITA helps you find
service providers for:

Business Environment

General information: Communicaid
Executive Planet
Opening hours and days: Shops are usually open every day and close at 10 pm. Banks are open from 9 am to 3h30 pm, Monday to Friday. Companies generally they work from 9 am to 6 pm, Monday to Friday.

Chinese Lunar New Year	January or February
Peace Memorial Day	February 28th
Tomb Sweeping Day	April 5th
Labor Day	May 1st
Dragon Boat Festival	In Chinese Lunar calendar: May 5th
Moon Festival	In Chinese Lunar calendar: August 15th
National day	October 10th

Chinese New Year

1 week in January or February.

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting standards: Taiwan's accounting principle follows the accounting standards promulgated by IASB. A Taiwan company with paid-in capital equal to or exceeding NTD 30 million must have a statutory audit financial statement.
Accounting regulation bodies: Directorate-general of budget, accounting and statistics.
Accounting reports: The Financial Accounting Standards Committee has been deliberating on the revised draft since May 22, 2008. The revised Statement which is equivalent to IFRS 8 is expected to be finished in 2009.
Consult the website of Accounting research and development foundation in Taiwan.
Publication requirements
Professional accountancy bodies: The Department of Accounting
Certification and auditing: Accounting research and development foundation in Taiwan.
Accounting news: Accounting research and development foundation in Taiwan.

Nature of the tax: VAT.
Tax rate: The VAT rate is 5% flat.
Reduced tax rate: The tax rate that applies to banks, insurance companies, trust and investment companies, securities traders, futures traders, bills finance companies, and pawnshops (except reinsurance premium income, for which the rate is 1%) is 2%. Export sales and export-related services are subject to zero tax rate.
More information on Invest in Taiwan (investment guide).
Other consumption taxes: Special Business tax, etc. More information on Invest in Taiwan (investment guide).

Company tax: Progressive rate
Tax rate for foreign companies: Resident and non-resident companies are charged in the same way concerning taxation. They're charged on worldwide income generated in Taiwan. If a person resides in Taiwan less than 90 days in a year, the tax rate will be 20%.
Over 90 days, the tax rate is the normal tax rate for local residents, no matter whether Taiwanese or foreigners.
Capital gains taxation: Capital gains are taxed in the same way as ordinary income.
Main allowable deductions and tax credit: Consult the guide "Invest in Taiwan".

Allowable deductions and tax credit: Deductions:
Medical care and insurance allowances are often deductible.
Losses of goods due to natural disasters.
Loans interests paid for the purchase of the main home.
Special expatriate tax regime: For nonresidents, income tax is computed on a gross basis and tax is collected via withholding, generally at a rate of 20%.

Countries with whom a double taxation treaty have been signed: See the Invest in Taiwan guide.
Whithholding taxes: Dividends: 0 / 25% / 30%, Interest: 6% / 10% / 20%, Royalties: 15% / 20%

National organizations: In order to register a patent, a trademark or a technical design, it is necessary to present it beforehand to The Intellectual Property Office and apply to an expert in Taiwanese patents recognized by the authorities.
Regional organizations: Chinese Intellectual Property Protection Association.

Type of property and law	Validity	International agreements signed
Patent Patent Act	20; 12 or 10 years
Trademark Trademark Act	10 years	Nice agreement
Design Patent Act	12 years.
Copyright Copyright Act	The life of the author and fifty years after the author's death.
Industrial Models

Independence of justice: The judiciary in Taiwan is largely independent, and trials are public and generally fair. Foreigners can be guaranteed an impartial trial from the countrys judicial system.
But Taiwan is not completely free from corruption (it particularly exists in countrys police force and judiciary): vote buying is a common practice at the time of elections and political and organized crime exits in the country.
Equal treatment of nationals and foreigners: Foreigners can be guaranteed an impartial trial from the country's judicial system.
The language of justice: The judicial language used in the country is Mandarin Chinese, having an interpreter is possible.
Recourse to an interpreter: Having an interpreter is possible.
Sources of the law and legal similarities: Taiwanese Law today is mainly based on the civil law system.
Checking national laws online: Taiwanese legal research guide

National standards organizations: Bureau of Standards
Integration in the international standards network: In an effort to enhance industrial competitiveness, maintain fair trade, and protect consumers as well as ensuring sustainable economic development, the Bureau of Standards, Metrology and Inspection under the Ministry of Economic Affairs has been dedicated to promoting standardization, metrology and inspection systems in line with international practices.
Bilaterally, the BSMI has concluded cooperation arrangements with 30 organizations of 23 countries. More information on the Bureau of standards website.
Online consultation of standards: Bureau of standards website.
Certification organizations: Bureau of standards

Any comments about this content? Report it to us.