Taiwan — Orbitax Country Chapters

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Taiwan — Orbitax Country Chapters

Table of Contents

ABOUT THE AUTHOR

1. FORMS OF DOING BUSINESS

1.1. Main Forms of Doing Business with a Legal Presence

1.1.1. Main Forms of Doing Business

1.1.2. Specific Uses of Available Legal Entities

1.1.3. Specific Constraints of Available Legal Entities

1.1.4. Types of Partnerships and Hybrid Entities Available for International Business / Structuring

2.1. Main Formation Requirements

2.2. Tax Consequence of Contributions

3. CORPORATE RESIDENCE

3.1. Corporate Tax Residence

4. PERMANENT ESTABLISHMENTS

4.1. Domestic PE of a Foreign Entity

4.2. Branch Profit (Deemed) Remittance Tax

5.1. Tax Base for Resident Entities

5.2. Treatment of Foreign Profits / Losses

5.3. Tax Consolidation / Group Treatment

5.4. Tax Base for Non-Resident Entities

5.5. Source Rules with Respect to Income Derived by Non-Residents

5.6. Qualification of Specific Income Categories for Tax Purposes

6. DETERMINATION OF TAXABLE INCOME

6.1. Main Rules Governing the Determination of Taxable Income

6.2. Main Differences between Commercial and Tax Accounting

6.3. Depreciation and Amortization

6.4. Reserves and Provisions

6.5. Deductions

6.6. Excluded and Segregated Income

8.2. Non-Residents

8.2.1. Corporate/Profit Taxes

8.2.2. Withholding Taxes

9. FOREIGN TAX CREDITS

10. INCENTIVES AND SPECIAL REGIMES

10.1. Holding Regimes

10.2. Financing Regimes

10.3. Intellectual Property Management Regimes

10.4. Specific Incentives

11. BUSINESS TRANSFORMATION AND RE-ORGANIZATION

11.1. Direct and Indirect Tax Consequences of Re-Organizations

11.2. Tax Consequence of Business Emigration, Corporate Inversions and the Cessation of Business

12. VAT ON INTERNATIONAL TRANSACTIONS

12.1. VAT on the Supply of Goods by Non-Residents

12.2. VAT on the Supply of Services by Non-Residents

12.3. Refund of VAT to Non-Residents

13. BASE PROTECTION AND ANTI-AVOIDANCE MEASURES

13.1. GAAR and General Anti-Avoidance Measures

13.2. Thin-capitalization and other Restrictions to Interest Deduction

13.3. CFC and Similar Regimes

13.4. Transfer Pricing

13.4.1. Main Rules

13.4.2. Specific TP Issues

13.4.3. Documentation Requirements

13.4.4. APAs and Dispute Resolution Mechanisms

14. TAX MANAGEMENT AND COMPLIANCE

14.1. Books and Records

14.2. Type of Assessment

14.3. Calendar of Important Compliance Events

14.4. Tax Audits

14.5. Interest and Penalties

14.6. Interest Compensation for Overpayment of Tax

14.7. Appeal Procedures

15. TAX CONTROVERSIES

5.3. Tax Consolidation / Group Treatment

In general, Taiwan does not allow groups of companies to file consolidated returns. However, there are two exceptions:

Financial holding companies formed under Taiwan's Financial Holding Company Act; and
Other Holding companies qualifying under Taiwan's Business Mergers & Acquisitions Act

In these cases, a holding company can only file consolidated returns if it holds at least 90% of its subsidiaries for a period of at least 12 months. Only companies in Taiwan can be group members for such group treatment.

AuthorOrbitax
CountryTaiwan
Updated4 May 2023
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