Taiwan

Business Environment

Business practices

For further information: Communicaid
For further information: Executive Planet
Closed 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.

Public holidays

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

Compensation day: No.

Periods when companies usually close

Chinese New Year

1 week in January or February.

Standards

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.
Classification of standards
Online consultation of standards: Bureau of standards website.
Certification organizations: Bureau of standards

Legal framework

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.
Having 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.
Consulting national laws online: Taiwanese legal research guide

Intellectual Property

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.
International membership

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent	Patent Act	20; 12 or 10 years
Trademark	Trademark Act	10 years	Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks
Design	Patent Act	12 years.
Copyright	Copyright Act	The life of the author and fifty years after the author's death.
Industrial Models

Tax rates

Consumption taxes

Nature of the tax: VAT.
Tax rate: The VAT rate currently is 5% flat, except for the sales qualified for zero rate or tax exemption.
Reduced tax rate: The VAT shall be zero for the sales of goods or services of the following items: goods for exports, services related to exports, services supplied in Taiwan, but utilized in foreign countries, etc. More information on Invest in Taiwan (investment guide).
Other consumption taxes: Special Business tax, etc. More information on Invest in Taiwan (investment guide).

Corporate taxes

Tax rate

Taxable income up to 50 000 NTD	:	0%
Taxable income between 50 001 and 100 000 NTD	:	15%
Beyond	:	25%

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".

Individual taxes

Tax rate

From 0 to 370,000 NTD	:	6%
From 370,000 to 990,000 NTD	:	13%
From 990,000 to 1,980,000 NTD	:	21%
From 1,980,000 to 3,720,000 NTD	:	30%
Beyond 3,720,000 NTD	:	40%
Non resident aliens	:	20% on gross income

Allowable deductions and tax credit

Deductions are available for insurance premiums, mortgage interest, rental expenses up to a specified amount and charitable donations. A nonresident taxpayer is not entitled to personal exemptions and deductions.

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%.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: Invest in Taiwan guide.
Whithholding taxes
Bilateral agreement

Sources of fiscal information

Tax Authorities: Department of Taxation of the Ministry of Finance.
Other domestic resources: Invest in Taiwan; Ministry of economic affairs.

Accounting rules

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
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.