Doing Business in Taiwan: Your Premier BPO Partner

Leading BPO in Taiwan offering expert corporate solutions, tax compliance, and payroll management for global businesses. Guided by the standards of Allinial Global.

Doing Business in Taiwan: Getting Started

Choose the business form that matches your corporate objectives in Taiwan.

Subsidiary Company

Ideal for setting up an independent legal entity in Taiwan with limited liability. Full capability to conduct all types of business transactions.

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Branch

An extension of your parent company. Can conduct business and generate revenue, but the parent company remains liable for its obligations.

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Representative Office

Best for establishing a local presence for purchasing, quality inspection, and marketing. Cannot engage in direct profit-making activities.

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Business Form Comparison

Feature Subsidiary Company Branch Representative Office
Legal Status Independent Entity Extension of Parent Extension of Parent
Liability Limited to local capital Parent company liable Parent company liable
Generate Revenue Yes Yes No
Capital Requirement Local working capital Operating fund in Taiwan No minimum requirement
Dividend Repatriation Tax 20% Withholding Tax No Withholding Tax N/A
Retained Earnings Tax 5% Surtax if undistributed Not Applicable N/A

Subsidiary Company

Advantages

Operates as an independent legal entity. The parent company does not create a Permanent Establishment (PE) in Taiwan, keeping its home operations and risk entirely shielded.

Disadvantages

Subject to a 20% withholding tax when distributing dividends back to the parent company.

Branch

Advantages

Highly tax-efficient for repatriating profits since there is no dividend withholding tax imposed on earnings sent back to the parent company.

Disadvantages

Not an independent legal entity, meaning the parent company creates a Permanent Establishment (PE) in Taiwan. Therefore, if the parent company earns any other non-branch-related Taiwan-sourced income, it must be declared and filed by this branch on the parent's behalf.

Compliance Calendar

Stay ahead of your statutory obligations with our comprehensive tax, corporate governance, and HR compliance timeline.

Compliance obligations Time for filing and application Remark

1. Corporate Income Tax

Filing of 2026 Profit-Seeking Enterprise Income Tax Return and Declaration of 2024 Retained Earnings 5/1 - 5/31 5 months after fiscal year end
Filing of Provisional Income Tax Return 9/1 - 9/30

2. Value Added Tax (VAT / Business Tax)

Filing and paying business tax 1st to 15th Every two months (January, March, May, July, September, November)

3. Transfer Pricing

Filing of 2025 Master Files and Country-by-Country Reports 1/1 - 12/31
Application for advance pricing arrangements Before end of fiscal year Profit-seeking enterprises should file applications for advance pricing arrangements before the end of the first fiscal year in which the transactions occurred.

4. Other corporate tax filings deadline

Withholding tax filing for non-residents Within 10 days after the payment date.
Salary and other income filing for 2026 1/1 - 1/31 1 month after year end
Issuance of Receipt of Income Certificate for 2026 1/1 - 2/10
Application of changing accounting basis for profit-seeking enterprise not organized as a company 3 months prior Three months prior to commencement of the next fiscal year

Useful Tools for Doing Business in Taiwan

Leverage our online calculators and self-check capabilities instantly.

Your Trusted BPO in Taiwan

Yangtze Management Consultants Ltd. is an associated company of Yangtze CPAs & Co., empowering companies doing business in Taiwan since 1997.

120+
Skilled Professionals
5
Major Cities in Taiwan
1997
Year Established
180+
Allinial Global Partner Firms

Start Doing Business in Taiwan Today

Ready to establish or optimize your business in Taiwan? Reach out to our experts today.

Contact Information

13-3 No. 666 Wuquan W. Rd Sec 2,
Taichung, Taiwan

c0001@yzcpa.com.tw

+886-4-2382-7568