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CPL200 發問時間: 商業與財經稅捐台灣 · 10 年前

Taiwan Tax

Can you someone tell me what is the tax consequences for foreign companies between opening up a branch company in Taiwan or having a subsidiary in Taiwan? I feel that the differences between the 2 are the same and would appreciate anyone that can provide some leads.

1 個解答

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  • 10 年前
    最佳解答

    我不確定你會不會讀中文, 因為你的問題都是英文的..

    So i will also try to answer your question by English lo...

    The main takeaway is this:

    - opening a branch company in Taiwan will avoid withholding tax on dividend to

    the main parent company. The branch company is subject to income tax of

    20%, like all other Taiwan companies. There is also a business tax of 5%, but

    that is the same with all other Taiwan company. After the end of the year, the

    remaining profit, after taking account into the 20% tax, will no longer be taxed

    and can be transmitted to the parent company in Hong Kong.

    - this is compared to having a subsidiary in Taiwan, where the dividend

    contribution to the parent company will be subject to a dividend withholding tax

    of 20% (unless tax treaty, but none with Hong Kong). On the other hand, if you

    do not distribute dividend, you will also face penalty of 10% on undistributed

    profit.

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