General Information
Taiwan is located in the heart of the Asia-Pacific region. It is an important hub for regional global trade and investment, especially in high-tech industries.
Taiwan is open to foreign investment and has relatively few restrictions for investors.
There are 174 industrial parks, 10 export processing zones, and 3 science parks…etc. All provide excellent, low-cost business operation environments.
Major Types of Entity
Taiwan allows foreigners to invest in all business sectors except in a few areas related to national security and environmental protection. There is a Negative List for investment by Foreign Nationals.
The major options for foreign investors to set up a business presence in Taiwan include:
| 1. |
Company – A limited company and a company limited by shares are the most common in Taiwan. There is no minimum investment limit for company registration. |
| 2. |
Factory – A company that is engaged in the manufacturing or processing of goods must apply for a factory registration. |
| 3. |
Branch Office – Branch needs a legal representative and a branch manager (can be the same person and either a Taiwanese or a foreign nationality). There are no minimum running capital requirements for a branch office. |
| 4. |
Representative Office – There is no capital contribution requirement. |
Major Taxes in Taiwan
Major types of taxes levied in Taiwan are as below:
CIT-Corporate Income Tax
VAT-Value Added Tax
PIT-Personal Income Tax
WHT-Withholding Tax
Employment
The basic wage is NT$27,470 per month or NT$183 per hour. Regular working hours may not exceed 8 per day or 40 per week. Paid annual leave is determined by the length of service: 7 days after one year of continuous service; 10 days for two years’ service; 14 days for three to four years’ service; 15 days for five to nine years’ service; and one additional day for each year of service over ten years up to 30 days.
Female employees are entitled to 8 weeks of paid maternity leave.
There is a mandatory requirement to make monthly contributions to:
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Labor Insurance – 7.7% of insured salary paid by employer. The maximum insured salary is NT$45,800. |
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Employment Insurance – 0.7% paid by the employer of insured salary. |
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National Health Insurance – employer pay 4.84% of an employee’s monthly insured salary up to a set ceiling of NT$215,900. The second-track premium is also payable by employers. When the total mont hly amount of salary paid exceeds the insured payroll-related amount, the employer must pay 2.11% on the excess balance. |
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Retirement Pensions – 6% of worker’s monthly wage. |