Taiwan, Republic of China (ROC) presents many start-up business opportunities, in particular within the linguistics industry (language training and translation services). With close reference to the World Bank Group's Ease of Doing Business and Doing Business Index data, this blog post provides concise summary of all the key aspects doing business in Taiwan as an expat entrepreneur.
TAIWAN QUICK FACTS
Currency: New Taiwan Dollar (NT$)
Minimum Wage: NT$25,250.00 (€816.72/USD$795.92/R14,330.11 as at 09/10/2022, 09:56am)
Corporate Income Tax: 20%; a non-resident company is taxed on income derived from Taiwan sources.
Dominant Religion: Buddhism (35.1% of the national population as of 2020 - Wikipedia)
National Languages: Mandarin; Hokkien; Taiwan Sign Language
Cuisine: Ba-wan (meat sphere); Taiwanese Turkey rice; Yi mein (soft tender noodles in soup)
OPENING A BUSINESS IN TAIWAN
Entrepreneurs can search the availability of the company name online at the Company, Business and Limited Partnership One-Stop Service Request Website (http://onestop.nat.gov.tw). Applications for company registration can be done online or in person at the relevant agency.
Entrepreneurs may also carry out the tax registration simultaneously, as well as labor insurance application, national health insurance application and pension fund plan appropriation application in the three-in-one comprehensive application procedure.
The average registration process takes 7 days to complete, and associated costs are the 150 NT$ for the online pre-registration enquiry or 300 NT$ for the both the online pre-registration enquiry and reservation of company name. 0.0025% of capital will be needed as a deposit, in case the registration fee payable is less than 1,000 NT$, the registration fee shall be 1,000 NT$.
GETTING CREDIT
The Join Credit Information Center (JCIC) is the credit bureau of Taiwan, and typically requires new business applicants, especially non-resident ones, to submit 2 years' worth of personal or company financial data, as part of the credit application process.
Once approved, both positive and negative credit can be distributed, allowing for business cashflow flexibility. Like any good Credit Bureau out there, the JCIC does distribute data from retailers and utility companies, which are very useful for business planning.
Credit options provided by banks or institutions are accessible online, allowing non-resident firms the option of paying relatively low Taiwanese rates compared to that of the Dollar, Euro and Pound Sterling economies.
PAYING TAXES
The statutory tax rate for employer-paid pension contributions is 6%, with the corresponding tax base being the gross salaries of employees. This is crucial information as any expats employed who are looking to build a Taiwanese pension pot, will need the employer's 6% support.
Employer-paid labour insurance has a varying tax rate, subject to numerous factors such as occupation type and hazards, age, and salary levels. There is a public labour insurance tax contribution though of 6.55% hard, though this may not be necessary, depending on for example if expat health insurance is provided from outside of Taiwan, and perhaps if the Taiwanese local employees have their own private health insurance provider.
REGISTERING PROPERTY
The first order of business here is to research the property rights and encumbrances registered against the property at the local Taiwanese registry of titles. This typically takes less than a day, with an associated cost of 50 NT$, i.e., 10 NT$ for the search, and 20 NT$ per sheet of e-script.
Buying the property involves paying deed tax to the Municipality, which is 6% of the standard property value. The average price per square metre for an apartment outside a Taiwanese city centre is 132,275.86 NT$, whilst near the city centre costs 210,741.96 NT$ (€6,819.89/USD$6,642.67/R119,602.23).
GETTING ELECTRICITY
The Taiwan Power Company is a state-owned electric power provider and runs the monopoly in the electricity market within Taiwan. The TPC also distributes electricity to the offshore islands of the Republic of China.
The price of electricity is USD$0.11 per kWh. The reliability and transparency of tariff index scores at 85/100, which is fairly good. When applying for electricity, the following documents will be needed: application form, indoor wires schematics, and the usage license. Once approved, a meter installation, internal wiring inspection, initial electricity flow will be conducted by the TPC.
References:
Comentários