Comparison Chart of foreign companies setting up operations in Taiwan, ROC
2020-02-24
| Item | Setting up a Foreign-Invested Limited Company or a Company Limited by Shares | Setting up a Branch of Foreign Company | Setting up a Representative Office of Foreign Company |
| Descriptions | The foreign company or natural person is the shareholder of the Taiwan company | Foreign head office establishes branch in Taiwan | Foreign company sets up representative office in Taiwan, but unwilling to run business in Taiwan |
| Registration authority | MOEAIC (the Investment Commission, Ministry of Economic Affairs) and the Ministry of Economic Affairs (MOEA) | MOEA | MOEA |
| Investment | Equity Capital ( Note1) | Working Capital(Note1) | --- |
| Business Tax | Use GUI(Government Uniform Invoice, business rate=5%) and filing per month or every two months | --- | |
| Income Tax for Company(Per Year) | Income tax rate=20% | --- | |
| Surplus distribution | Pay dividend to foreign shareholders (non-residents, profit-seeking enterprise without a fixed place of business) must withholding tax at rate 21% from 2018, but countries with a Tax Treaty, the Withholding rate can be reduced.(Note2) | When the surplus is repatriated to the head office, no need to withholding tax | --- |
| Tax on Undistributed surplus | rate=5% | --- | --- |
Note1: There is no minimum amount, whether it is equity capital or working capital. However, if a foreigner work visa is required, the minimum amount of equity (capital) or working capital is NT $ 500,000.
Note2: For a list of other applicable countries, please see the Ministry of Finance website https://www.mof.gov.tw/singlehtml/191?cntId=63931
DATA SOURCE：Benison Associated CPA’s Firm