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jake_morrison | 2 years ago

If you need a company in Taiwan, it's generally best to have your main company outside and have a branch in Taiwan. It has significant tax benefits, particularly for foreigners.

A branch can repatriate profits to the parent company, after paying Taiwan tax. If you have a standalone Taiwan company, then you have to pay dividends, then pay personal tax on it. If you are not resident in Taiwan, then you would pay 20% tax on those dividends. There is also a 5% tax on retained earnings.

Another benefit is that if your company pays someone overseas for services, then Taiwan considers that "Taiwan source income", and they owe 20% tax on it. Other countries like Hong Kong would not tax that money.

As foreigner, if you leave, then you would find it difficult to run your company remotely. So you might as well set up somewhere else.

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