Taiwan is one of the world’s largest producers of computer-related products, and boasts an extensive, well-established network of industrial zones and a growing number of high-technology industry clusters, which are supported by high-quality human resources. And, Taiwan’s rise to prominence in the IT industry has sparked a growing industrial research and development sector.
While investing in Taiwan, the most common business organizations are the limited company and the company limited by shares.
All sales of goods and provision of services in Taiwan, as well as all imports of goods into Taiwan, are subject to Business Tax (“BT”). The “BT” is imposed under two systems: the VAT system (5%) and the Non-VAT system (0.1% – 25%). Apart from the “BT”, the profit seeking enterprise in Taiwan also subject to 17% of corporate tax. If the company distributes profit to foreign shareholders, a 10% withholding tax will be charged on the dividends paid.