Taxes and Accounting in Taiwan
Accounting (0) , Consumption/VAT/Sales Tax (0) , Corporate Tax (0) , International Tax Treaties (0) , Personal Tax (0)
Overview by Globlatrade.net:
- 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 the International Accounting Standards Board (IASB).
- 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
- Each company has to produce a balance sheet and a profit and loss account for each accounting year.
- Professional Accountancy Bodies
The Department of Accounting
- Certification and Auditing
- A Taiwan company with paid-in capital equal to or exceeding NTD 30 million must have a statutory audit financial statement. For more information, you can contact the Accounting research and development foundation in Taiwan.
- Accounting News
Accounting research and development foundation in Taiwan.
- Nature of the Tax
- 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 in the 2009 PKF guide on Taiwan.
- 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 PKF 2009 Tax guide.
- Other Corporate Taxes
- Real Property Tax (Land Value Tax) of 1 to 5.5%; Deed Tax is imposed on the transfer of real estate at tax rates varying from 2% to 6%.
|Individuals income tax||Progressive rate from 6% to 40%.|
|From NTD 0 to 410,000||6%|
|From NTD 410,001 to 1,090,000||13%|
|From NTD 1,090,001 to 2,180,000||21%|
|From NTD 2,180,001 to 4,090,000||30%|
|Beyond NTD 4,090,001||40%|
- Allowable Deductions and Tax Credit
- Medical care and insurance allowances, Losses of goods due to natural disasters and Loans interests paid for the purchase of the main home are often deductible. Non-residentsare not entitled to personal exemptions or deductions.
For additional information consult the 2009 Taiwan Tax Guide of PKF.
- Special Expatriate Tax Regime
- For non-residents, income tax is computed on a gross basis and tax is collected via withholding, at a progressive rate of up to 40%.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the 17 Tax treaties signed by Taiwan
- Withholding Taxes
- Dividends: 20%; Interest: 10%; Royalties: 15% and 20% on royalties paid to non residents.
- 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.
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
|20; 12 or 10 years|
|10 years|| Nice agreement
|The life of the author and fifty years after the author's death.|
- 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 country?s judicial system.
But Taiwan is not completely free from corruption (it particularly exists in country?s 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
- General Information
- 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|
Periods When Companies Usually Close
|Chinese New Year||1 week in January or February.|
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