Recent changes in company and tax law in Taiwan   Asia Offshore Association (AOA) Beijing Conference Nathan Kaiser Taipei ...
<ul><ul><li>Recent Changes in Company Law </li></ul></ul><ul><ul><li>Recent Changes in Tax Law </li></ul></ul><ul><ul><li>...
<ul><ul><li>No Minimum Capital Threshold for Companies </li></ul></ul><ul><ul><ul><li>Before April. 29, 2009    </li></ul>...
Corporate income tax rate: 25% -> 20% Individual income tax rate: n Recent changes in Taiwan's tax law -  Income Tax Rate ...
<ul><ul><li>To interpret the 11 types of income under Art 8 of the Income Tax Act </li></ul></ul><ul><ul><li>Key points: <...
<ul><li>Where a taxpayer is not residing within Taiwan: </li></ul><ul><ul><li>Salaries: 18%  </li></ul></ul><ul><ul><li>Pe...
<ul><ul><li>Definition </li></ul></ul><ul><ul><li>Ways to establish a trust - contract or will </li></ul></ul><ul><ul><li>...
<ul><ul><li>Gift tax </li></ul></ul><ul><ul><ul><li>nationality and residency of the donor </li></ul></ul></ul><ul><ul><ul...
 
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Presentation AOA Beijing 2010

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  • 1. Taiwan has amended its company act, articles 100 and 156, to abolish its requirement of minimum capital. In the new law, MOEA will only rely on CPA&apos;s investigation report to see whether the company has enough capital for its set up.  2. The old business registration system combines many functions of regulations, such as tax, urban planing, public health. In other words, unless the company&apos;s application has approved by all relevant government agencies, it won&apos;t get the business registration done. The new system makes company set-up simple and straightforward. Each government agency can still demand the set-up company to comply with its regulation after  the company has been set up. 
  • Presentation AOA Beijing 2010

    1. 1. Recent changes in company and tax law in Taiwan   Asia Offshore Association (AOA) Beijing Conference Nathan Kaiser Taipei www.eigerlaw.com
    2. 2. <ul><ul><li>Recent Changes in Company Law </li></ul></ul><ul><ul><li>Recent Changes in Tax Law </li></ul></ul><ul><ul><li>Trust Law </li></ul></ul><ul><ul><li>Taxation of a Trust  </li></ul></ul>Table of Content 
    3. 3. <ul><ul><li>No Minimum Capital Threshold for Companies </li></ul></ul><ul><ul><ul><li>Before April. 29, 2009    </li></ul></ul></ul><ul><ul><ul><ul><ul><li>TWD 250,000 at least for limited company           </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>TWD 500,000 at least for limited by share company  </li></ul></ul></ul></ul></ul><ul><ul><ul><li>After April. 29, 2009  </li></ul></ul></ul><ul><ul><ul><ul><ul><li>No fixed threshold of minimum capital </li></ul></ul></ul></ul></ul><ul><ul><li>No Certificate of Business Registration  </li></ul></ul><ul><ul><ul><li>Before April 13, 2009 </li></ul></ul></ul><ul><ul><ul><ul><ul><li>In addition to company registration, company has to apply for Certificate of Business Registration </li></ul></ul></ul></ul></ul><ul><ul><ul><li>After April 13, 2009   </li></ul></ul></ul><ul><ul><ul><ul><ul><li>  One system: company registration </li></ul></ul></ul></ul></ul>Recent changes in Company Law   
    4. 4. Corporate income tax rate: 25% -> 20% Individual income tax rate: n Recent changes in Taiwan's tax law -  Income Tax Rate 2010: 2009: Taxable Income (TWD) Income Tax Rate 0 - 500,000 5% 500,000 - 1,090,000   12 % 1,090,000 - 2,180,000 20% 2,180,000 -  4,090,000 30% 4,090,000 - 40% Taxable Income (TWD) Income Tax Rate 0 - 410,000 6% 410,000 - 1,090,000   13% 1,090,000 - 2,180,000 21% 2,180,000 -  4,090,000 30% 4,090,000 - 40%
    5. 5. <ul><ul><li>To interpret the 11 types of income under Art 8 of the Income Tax Act </li></ul></ul><ul><ul><li>Key points: </li></ul></ul><ul><ul><ul><li>Remuneration for service is not considered TW-sourced income, if : service is rendered outside TW + the fixed business place in TW (if any) is not involved  </li></ul></ul></ul><ul><ul><ul><li>Business operations are partly carried out onshore and offshore: only the profits attributed to the onshore part is TW-sourced income </li></ul></ul></ul><ul><ul><ul><li>Fees for R&D cost sharing may not be considered as TW-sourced income </li></ul></ul></ul><ul><ul><ul><li>If a foreign enterprise's income is subject to WHT in TW, it may apply for tax refund by way of deduction for costs and expenses within 5 years of the dates of payments.    </li></ul></ul></ul>Recent changes in Taiwan's tax law -  Guidelines for Determination of Taiwan-sourced Income
    6. 6. <ul><li>Where a taxpayer is not residing within Taiwan: </li></ul><ul><ul><li>Salaries: 18%  </li></ul></ul><ul><ul><li>Pension: 18%  </li></ul></ul><ul><ul><li>Income from transactions in structured products between the taxpayer and securities firms or banks: 15% </li></ul></ul><ul><ul><li>Others: 20% </li></ul></ul>Recent changes in Taiwan's tax law -  Withholding Tax Rates 
    7. 7. <ul><ul><li>Definition </li></ul></ul><ul><ul><li>Ways to establish a trust - contract or will </li></ul></ul><ul><ul><li>Trust registration - against third parties  </li></ul></ul><ul><ul><li>No trust property shall be subject to compulsory execution, unless:   </li></ul></ul><ul><ul><ul><li>a right in the property that exists before the trust is established (e.g. mortgage). </li></ul></ul></ul><ul><ul><ul><li>a right that arises from the Administration of trust affairs (e.g. repair the trust property). </li></ul></ul></ul><ul><ul><ul><li>otherwise provided by other applicable laws. </li></ul></ul></ul><ul><ul><li>Revocation of the trust  </li></ul></ul>Trust Law 
    8. 8. <ul><ul><li>Gift tax </li></ul></ul><ul><ul><ul><li>nationality and residency of the donor </li></ul></ul></ul><ul><ul><ul><li>residency of the trustee </li></ul></ul></ul><ul><ul><ul><li>Gift tax payable = </li></ul></ul></ul><ul><li>             (gift amount - exemption 2.2 million)*10%   </li></ul><ul><ul><li>Income Tax </li></ul></ul><ul><ul><ul><li>residency of the beneficiary (only if in Taiwan) </li></ul></ul></ul><ul><ul><li>Withholding Tax </li></ul></ul><ul><ul><ul><li>residency of the trustee (only if in Taiwan) </li></ul></ul></ul>Taxation of a trust 

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