Taiwan Co. Info

Taiwan is actively extend manufacturing value to integration services, along with the normalization and open economic across the Taiwan Strait, make a more stable and transparent regulatory environment. Follow the international norms to revised the foreigner investment regulations, establish cross-strait industrial cooperation platform, promote cross-strait trade more liberalization to attract foreign investors to Taiwan to participate in cross-strait industrial cooperation.

With the lifting of several controls on both sides across the Taiwan Strait, expect more consolidation, foreign investors can incorporate Taiwan into the overall planning of the Asia-Pacific region actively. Regulatory restrictions policy relaxation, it's freer for businessman and capital to move across the country, to reduce transaction costs of transnational operations. Taiwan's industry will be fully integrated in Greater China economic circle, creating new investment opportunities, sufficiently link to international value-added chain, reach Taiwan, foreign investors and China multi-win situation. 

Since May 2008 Straits Exchange Foundation and Association for Relations Across the Taiwan Straits restore contact, we have signed for six agreements, the negotiation between Straits Exchange Foundation and Association for Relations Across the Taiwan Straits has entered to the normalization phase. In addition, on June 29, 2010 signed the Economic Cooperation Framework Agreement (ECFA), on September 12, 2010 becomes effective, from January 1 2011 full implementation trade in goods and trade in Services early harvest program, goods in the list of began to fall / tax-free, to benefit Taiwan and China people. ECFA is not only the basis of open cross-strait and promote economic cooperation, more important is a touchstone to test relationship cross-strait in the future, will Help Taiwan to continue play the role of global multinational logistics gateway to the China market position and in the global and domestic enterprises global layout, while domestic enterprises actively extend manufacturing value to the value of integration services. The basic of experience of the global layout and up-and down-stream integration, with a flexible enterprise, perfect infrastructure and advanced technology research and development for the industrial environment, the competitiveness of Taiwan's technology industry mainly rely on excellent high-tech infrastructure and R & D gathered, has become global supply of high-tech products.

For the past few years, degree of Taiwan's internationalization become higher, in order to make the tax system integration into global community, to create a fair and reasonable tax environment, and in response to the change of economic development and the demand of cross-border investment, Taiwan's tax system has been amended several times and reforms.

•In 1998 implementation of business income tax and comprehensive income tax two-in-one system

•In 2005 implementation of anti-avoidance clause -transfer pricing system

•In 2006 implementation of the income tax alternative minimum tax

•In 2009 loss credit will extend from 5 years to 10 years

•In 2010 implementation of statute for industrial innovation, continue to regarding industrial development policy

•In 2011 implementation of anti-avoidance clause - anti-thin capitalization system

•In 2011 implementation of specifically selected goods and services Tax

In order to promote international economic and trade exchanges and to avoid double taxation of cross-border transactions, signed a Cross-strait Sea Transport Agreement and Supplemental Agreement on Cross Strait Air Traffic with China, mutually agreed reduce sales tax and income tax of cross-strait sea and cross-strait air.

To provide various countries and capital investments from China incentives of investment to Taiwan, Taiwan provide enterprises appropriate operating environment, in terms of the cost of land, commercial office rent in Taiwan is lower than other countries, and continuous improvement of administrative processes, accelerate manufacturers to obtain land, convenient foreign and local enterprises to invest in setting up software, logistics and manufacturing positions. Due to the positive development of new science industrial park, general industrial areas and the establishment of free trade zone. Taiwan's hydropower infrastructure, transportation and telecommunications complete, and meet the needs of all types of investment industry.

•Complete international transport and logistics energy

•High-quality and low-cost hydropower and telecommunication services

•High broadband penetration

•International Airport / international port / passenger traffic / rail / highway and high-speed rail significantly shorten the travel time between north and south

•Planning multiple tax policy, such as slash business income tax rate and provide R&D tax credit investment for industrial upgrading

Taiwan's have a good environment for tax, simple reporting procedures, transparent tax collection procedures, and communication with tax collection office to smooth pipes, and government response to the economic situation continuing tax reform, for example, slash individual income tax, business income tax and estate/gift tax rates, etc., to make Taiwan investment environment more attractive in Asia-Pacific.

Foreigner investment in Taiwan, are protected by Statute For Investment ByForeign Nationals, provide a high protect of investment environment. In terms of business environment, have commercial laws, in addition to the general protection of intellectual property related to the business activities, also have perfect labor protection system base on "Labor Standards Act", thereby promoting labor relations cooperation and provide comprehensive labor employment security. Enterprise accounting system in Taiwan, will gradually adopt International Financial Reporting Standards (IFRS), with a basic principle, without exception, few provision, required professional judgment and other characteristics, can improve the transparency of financial statements, lower capital costs, savings restatement cost. With further relaxation of cross-strait policy, the overall investment environment has connecting with the international standards.

Office Agency Profiles and Functions

Office agency refers to a department of the government's handling affairs or administrative unit, also handle some business or provide services. Also refers to an organization in somewhere, non-independent accounting office of unincorporated body. Therefore, office agency can't have buying and selling behavior, there will only have expenses no revenue. Office agency is not a properties of company, everything should follow the head office, including billing, receivables. Thus, functional of office agency mainly acting as co-ordinating role, to conduct business and broaden the market play role of "communication" and "bridge" for head office. Can execute market development / business-marketing / services after sale and other initial services for the foreign-investment or Mainland Chinese Investors enterprises.

Branch Company Profiles and Functions

Branch company refers to a branch is governed by the parent company in the business, financial, personnel and other aspects without having capacity of corporate. Branch lack of independence in the law, on the economy, is an affiliates of the parent company, and liable for branch company's debt with assets of head office. Although branch is no independent capacity of corporate, but can representatives of foreign parent company carries on business in local, issue an invoice, also we need to return tax, before establish you must apply through the Taiwan Investment Commission approval, and the basic functions is same as establish Co., and net profit remitted not imposition a 20% withholding tax

Subsidiary Profiles and Functions

Foreign-investment or Mainland Chinese Investors enterprises can establish Co. or Co. Ltd, after established registration is same as the local Co. same local capacity of corporate, independence in the law, on the economy, registered capital should fully funded, also can establish branches, issue an invoice, carries on business. In addition to the 17 percent tax on business income tax, and shall be remitted when the dividend withholding 20% of the withholding tax, but can enjoy the relevant tax preferential.