Nov 02

The Council of Labor Affairs (CLA) recently issued an interpretation announcing that intra-company transferees sent to Taiwan by multinational enterprises no longer need to have their work experience certification verified by an overseas representative office of Taiwan.
In the past when an employer wanted to hire people from certain countries-Nigeria, Afghanistan, Algeria, Cuba, Bangladesh, Bhutan, Iran, Iraq, Laos, Myanmar, Nepal, Sri Lanka, Somalia, Syria, Pakistan, the Philippines, Thailand, Vietnam, Malaysia, Cambodia, and Indonesia the foreign documentation that had to be submitted was required to be verified by an overseas Taiwan representative office. The CLA has now made it easier for foreign employees of multinational companies by relaxing the verification conditions. Now, any foreign professional of whatever nationality who is employed by a multinational enterprise in specialized or technical work and who is transferred to a branch or subsidiary in Taiwan no longer needs to have his or her work experience certification verified by an overseas representative office of the Taiwan government.

written by Good Earth

Oct 21

The Ministry of Finance (MOF) recently promulgated the “Principles for the Determination of Income Earned in the ROC as Provided in Article 8 of the Income Tax Act,” providing that remuneration earned by companies without bases or agents in Taiwan, and remuneration for which proof can be submitted that the service was provided overseas, need not be included in income from sources in the ROC for tax purposes. The same principle applies to individuals, juristic persons, groups, and other organizations from mainland China that derive remuneration in Taiwan. Continue reading »

written by Good Earth

Oct 15

The Ministry of Economic Affairs recently revised the “Regulation Governing the Application of Business Registration” to accept a copy of the lease signed by the businessman in his or her own name and by the property owner as a substitute for the letter of consent of the owner for business registration, amendment to registration, and branch office registration.
The MOEA’s Department of Commerce notes that in the past, a business person applying for business registration had to affix a copy of the ownership certificate of the building where the business is located; if the owner of the property was not the responsible person of a business, however, then the original copy of an agreement by the owner, or a copy of a lease signed by the business (profit-seeking enterprise) and the owner had to be affixed.
At the present time, the responsible persons of solely owned or partnership enterprises frequently sign lease agreements with building owners in their own names.
The new relaxation makes business registration easier by allowing a copy of a lease signed by the responsible person of a business and by the property owner to be substituted for an agreement signed by the owner, so long as the lease bears the words, “May be used for business registration or operation” to assure that the owner knows that his or her building is to be registered as a business location.

written by Good Earth

Sep 10

The Ministry of Finance (MOF) recently revised the Regulations Governing Customs Clearance Procedures for Express Consignments, to bring Taiwan’s customs clearance procedure for express consignments more into line with international trends. By allowing electronic invoices to be used in place of attaching physical invoices to express cargo shipments, and by simplifying businesses’ documentation, this revision moves Taiwan toward paperless customs clearance for express consignments, and will enable businesses to reduce operating costs.
The MOF noted that paperless customs clearance is the way of the future, with many global express cargo companies having already built up digital invoice storage and retrieval systems. If an express consigner possesses such a system, and is able to provide the customs authorities with immediate, on-the-spot per usal and printout of the relevant image files, from now on it will no longer need to attach invoices to goods. Additionally, in line with the abandonment of registration certificates for profit-seeking enterprises, with the latest registration data of relevant businesses already stored in the Ministry of Economic Affair’s public disclosure and inquiry system, express cargo firms will in future be able to register simply by submitting an application form together with their air freight forwarder license.
In view of the potential requirements of quarantine or supplementary certification for fresh agricultural, fishery and livestock products, and given the dispersed locations and lack of cold storage facilities at express consignment customs points, with consequential concerns about product spoilage, such products are excluded from the express consignment mode of customs clearance under this revision.

written by Good Earth

Aug 27

Legislative Yuan passed a partial revision of the Company Act, authorizing the competent authority for securities to ask publicly listed companies to adopt electronic voting so that their shareholders can exercise voting rights more easily. The revised law also stipulates the use of the cumulative voting system in the election of directors and relaxes the restriction on the issuance of cash dividends from legal reserve, moves designed to protect the interests of shareholders, facilitate corporate operations, and attract investment. The Ministry of Economic Affairs points out under the existing law, when a company calls a shareholders’ meeting the shareholders are allowed to exercise their voting rights either in writing or electronically; in recent years, however, the dates of the annual shareholders’ meetings of different listed companies have been too concentrated and shareholders have been unable to attend all of them. To protect shareholders’ interests, the current revision authorizes the agency in charge of securities to ask companies, depending on their size, number of shareholders, structure of shareholding, and other factors, to offer electronic voting as one of the channels whereby shareholders can exercise their voting rights.

written by Good Earth

Aug 12

According to Regulations Governing the Application of Tax Offsets for Corporate R&D and Personnel Training Expenditures, only salary of full-time R&D personnel could be used for investment tax credit. Salary of part-timer, administration personnel, assistant, market research staff, statistic staff, controller and the supervisors are not applicable.

written by Good Earth

Aug 11

In case an entity is approved to conduct investment activities in foreign countries in compliance with Industrial Promoting Act and The Guidelines for Examination of Profit-seeking Enterprise Income Tax, an amount of no more than 20% of total offshore investing capital can be recognized as offshore investment losses reserve in the year that investing capital is transferred. To be noted, if an entity plans to recognize offshore investment losses reserve, application for approval or evaluation shall be submitted to Investment Commission of MOEA before processing offshore investment. In the same year as conducting offshore investment, documents related must be submitted to local tax collecting agency for recognize of losses reserve.

written by Good Earth

Aug 10

Draft amendment of Company Law was passed on July 2 by Executive Yuan. In future, legal reserve and capital reserve of a company shall be distributed in cash. While the portion of legal reserve which exceeds 25% of paid-up capital can be distributed in cash.

The draft amendment stipulates that the company without loss can distribute all or partial legal reserve and capital reserve in new shares or in cash based on shares holding ratio by shareholders.

written by Good Earth

Jul 23

The Ministry of the Interior plans to make it easier for Mainland Chinese business people and professionals to visit Taiwan.
In the past, people from Mainland China visiting Taiwan for business, observation, conference, presentation, and trade-fair purposes were limited to stays of no more than 14 days; this period will be lengthened to one month. For those who come for business contract performance activities such as training, inspection of goods, after-sales service, and technical direction, the maximum stay will remain at the original three months.
The revised rules will also loosen restrictions on the number of Mainland Chinese businessmen that domestic companies are allowed to invite to Taiwan. Companies
with annual revenues of NT$30 million or less were originally allowed to invite 15 mainlanders per year; that figure is being boosted to 45. For companies with revenues of more than NT$30 million, the number is being increased from 50 to 200.

written by Good Earth

Jul 21

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.

written by Good Earth