[Investment] For Tax Benefit, Branch Company Is be Better Than Subsidiary for China Investment in Taiwan

If China entity sets up a branch company in Taiwan, all income shall be recognized as revenue of headquarter in China for business income tax filing. Withholding tax will not be deducted from the remittance of surplus to headquarter from Taiwan branch company. However, if China entity sets up a subsidiary in Taiwan, withholding tax at the rate of 20% must be deducted when surplus of Taiwan subsidiary is remitted back to headquarter.