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Accounting and auditing

Accounting standards

Listed companies and financial institutions supervised by FSC, except for credit cooperatives, credit card companies and insurance intermediaries are required to prepare financial statements in accordance with IFRS. Unlisted public companies, credit cooperatives and credit card companies are required to prepare financial statements in accordance with IFRS.


For business other than public companies in the above paragraph are required to prepare their financial statements based on Enterprise Accounting Standards developed by Accounting Research and Development Foundation (ARDF) which is responsible for developing accounting principles and auditing standards of Taiwan. IFRS for SME have served as a primary reference of ARDF during the course of developing those standards.

Audit requirements of financial statements

Financial statements of public companies including SEC or OTC listed companies, financial institutions, insurance companies, trust entities and certain industries required by FSC are required to be audited by a Certified Public Accountant (CPA) of Taiwan CPA firm. Financial statements of companies with paid in capital over NT 30 million are also required to be audited by an independent CPA.

Starting January 1, 2019, companies/branches with annual revenues over NTD 100 million or employees insured under labor insurance program over 100 also need to have their financial statements audited by a CPA firm.

Certification requirements of tax returns

If an enterprise incurs loss, the loss may be carried forward  to offset income of the following 10 years, if the enterprise’s tax return in the years the losses incurred is certified by an independent certified public accountant.

In addition, tax returns of the following companies should be certified by an independent CPA,

Banks, credit cooperative institutions, investment and trust companies

  1. Public companies

  2. Enterprises enjoy tax holiday and report total revenues (including non-operating income) over NT 50 million.

  3. Filing consolidated revenues

  4. Enterprises not in any of the above categories but have total revenues over NT 100 million.

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