Business Operations in the Republic of China (Taiwan) (Portfolio 7080)

  • This Portfolio describes the forms of doing business in the Republic of China and the relevant tax acts and regulations.

Description

Tax Management Portfolio, Business Operations in the Republic of China (Taiwan), No. 7080 T.M., describes the forms of doing business in the Republic of China and the relevant tax acts and regulations.

Foreign investments in the Republic of China are subject to the approval of the competent government authorities pursuant to the Statute for Investment by Foreign Nationals, the Statute for Investment by Overseas Chinese, the Statute for Establishment and Administration of Science-Based Industrial Parks, or the Statute for Establishment and Administration of the Export-Processing Zones. The formation and operation of a company are discussed in detail.

Other than a treaty on shipping and air transport income, there is no income tax treaty between the Republic of China and the United States. However, a flat corporate income tax rate (20%) and tax incentives under the Statute for Industry Innovation and other related regulations substantially alleviate the tax burdens of United States investors in the Republic of China. Moreover, the Republic of China has entered into tax treaties with a number of countries, including France, Germany, the Netherlands, Singapore, and the United Kingdom, among others. These treaties provide investors from those jurisdictions with preferential tax treatment.

This Portfolio may be cited as Chen, Tseng and Lin, 7080 T.M., Business Operations in the Republic of China (Taiwan).


Table of Contents

I. The Republic of China (Taiwan) — The Country, Its People and Economy
II. Operating a Business in Taiwan
III. Forms of Doing Business in the ROC
IV. Principal Taxes
V. Taxation of Domestic Corporations
VI. Taxation of Foreign Corporations
VII. Taxation of Branches of Foreign Corporations
VIII. Taxation of Partnerships
IX. Taxation of Other Business Entities
X. Taxation of Individuals — Residents
XI. Taxation of Nonresident Individuals
XII. Estate and Gift Tax
XIII. Intercompany Pricing
XIV. Special Provisions Relating to Multinational Corporations
XV. Avoidance of Double Taxation
CV-Chen
C.V. Chen
Managing Partner
Lee And Li, Attorneys-At-Law
Ken-Ying Tseng
Ken-Ying Tseng
Partner
Lee and Li
Frank Lin
Frank Lin
Partner
Lee and Li
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