Taxation

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Monday, June 22, 2009

Tax Law Doctrine and the “Substantive Taxation Principle”

A recent amendment of Taiwan’s Tax Collection Act added clearer guidance on the “substantive taxation principle” referred to in Article 12-1 of the said Act. According to the legislative explanation given.......

Wednesday, June 4, 2008

Tax Management-based Structural Change among Taiwanese-owned Multinationals

For the many Taiwanese corporates endeavoring to expand their operations globally, it is fair to say that 2007 has left a deep impression on account of all the tax challenges they faced from tax authorities at home and abroad. Looking back on the past year.......

Wednesday, June 4, 2008

Tax Preferences and Transitional Measures in China's New Tax Law

China's new Enterprise Income Tax Law is a major departure from the previous tax system. Unlike the old system, with its differentiation between domestic and foreign-owned enterprises and separate tax preference policies, the new tax law unifies taxes and tax rates for foreign and domestic enterprises.

Thursday, April 12, 2007

A Discussion of the Mandatory Tender System and Decriminalization

According to reports, the Financial Supervisory Commission ("FSC") acted on its own initiative in launching special investigations of China Development Industrial Bank & Partners Investment Holding Corp (CDIB & Partners) and two affiliates in connection with China Development’s acquisition of Global Securities Finance Corp.

Thursday, April 12, 2007

Delisting and Management Buyouts

Recently, there has been a spate foreign investor private equity funds making tender offers for the equity of public companies in Taiwan, and then taking those companies private. Under current law, if the tender offer is carried out by a private equity fund which (a) is not construed to be a related party of the acquired firm, (b) is not assisting a related party of the acquired company......

Thursday, April 12, 2007

The Timing of Public Information Disclosures in Mergers and Acquisitions

Under the provisions of Taiwan's current Securities Exchange Act, announcements of corporate mergers and acquisitions constitute information that can have a significant influence on the share prices of public companies.

Thursday, March 29, 2007

For Proper Tax Management, Know Which Direction Tax Authority Audits Are Headed

The tax authorities are becoming progressively stricter about all kinds of tax obligations. In order for a corporation to lower the risk it faces of being fined or charged back taxes, one needs to understand the tax-related regulations as well as the direction that the tax authorities' audits are moving in practice, and proceed with the necessary tax management measures as early as possible so that the company's interests can be protected.

Friday, March 9, 2007

Employee Stock Bonuses: Tax and regulatory considerations

When Article 64 of the Business Accounting Law was amended on May 24 2006, removing the rule that said earnings distributed to employees as dividends or bonuses "shall not be recorded as expenses or losses".....

Friday, March 9, 2007

Estate and Gift Taxes in Taiwan - analysis and suggestions

Taiwan’s estate taxes are levied for the purpose of redistributing wealth, and taxes on gifts are meant to help achieve the redistributive objective behind levying taxes on estates by preventing individuals from using gifts while still alive to evade taxation of inheritance transfers.

Friday, March 9, 2007

How Changes in the Income Tax Act Will Affect the Taxation of Undistributed Earnings

There are significant differences between tax accounting and financial accounting, including matters of timing (when assets are realized and recognized) and the longevity of assets, which lead to inconsistency between the two when it comes to undistributed earnings.

Friday, March 9, 2007

International Tax Issues for New Financial Products

In recent years a continuous stream of new financial products has arisen out of the old. These new products are designed and underwritten mostly by transnational financial groups, and these institutions tend to be characterized by joint underwriting by different participating multinational organizations......

Friday, March 9, 2007

Royalties: A Common Source of Problems in Customs Valuation

The dutiable value of imported goods is the basis on which the Customs assesses tariffs and other taxes linked to imports, and firms usually submit to Customs dutiable values based on the invoices they receive.

Friday, March 9, 2007

Sticker Shock: New rules mean higher taxes for Taiwanese employees sent to the mainland

With their sizable investments in Mainland China, it is not surprising that many Taiwanese employees are sent to live and work on the mainland every year. In most cases, they will be paid separately in Taiwan and Mainland China.....

Friday, March 9, 2007

Taiwan's Right to Tax

Tax havens, with their general lack of financial transparency, have long been targeted for investigation by governments around the world seeking to prevent tax evasion and curb international money laundering.

Friday, March 9, 2007

Taiwan's Tax System, Past and Future

When Taiwan first implemented its imputation ("two-in-one") tax system, designed to eliminate double taxation of business income, it represented a merger and simplification of two preceding systems.

Friday, March 9, 2007

Tax Disputes over Investment Credits for R&D Expenses

At the present time, the main piece of tax preference legislation for Taiwan's industries is the "Statute for Upgrading Industries" (hereafter, the "Statute"). According to Article 6 of this Statute.....

Friday, March 9, 2007

The Controversy over Tax-free Sales by Firms in Bonded Areas

Under the rules of Article 7, paragraphs 1 and 4, of the Value-Added and Non-Value-Added Business Tax Act (hereafter, "the Business Tax Act" or "the Act"), a zero "business tax" (VAT) rate applies to goods and labor services that are exported or sold to firms in bonded areas.

Tuesday, December 5, 2006

Does Net Value Equal Shareholders' Equity?

Companies typically use their balance sheets to express their financial condition. These balance sheets are divided into three main parts: assets, liabilities and shareholders' equity. We can use the identity “assets = liabilities + shareholders' equity” to express the relationship between these three.

Wednesday, June 12, 2002

Applying the "First Sale" Valuation Method to Multi-way Trade

In international trade, transactions of goods are often triangular (or quadrangular, etc.) in nature. For example, an American firm may place an order for goods with a firm in Taiwan…

Wednesday, June 12, 2002

Briefs of Tax/Commercial Law

Wednesday, June 12, 2002

Corporate Tax Management for Transfer Pricing Audits

Setting up and operating a transfer pricing regime is an effective way to keep transnational corporations from using non-arm’s transaction arrangements to evade tax.

Wednesday, June 12, 2002

Cut Taxes Legally and Enjoy Peace of Mind; Evade Tax and Face No End of Trouble

Finance Minister Lin Ch'üan recently pointed out that the annual income of the 40 highest income earners was over NT$300 million in 2003…

Wednesday, June 12, 2002

Importing Own-use Machinery & Equipment Duty-Free

The last several years have been a time of rapid transformation in the global economy, and Taiwan's economy has had to face some tough challenges as a result.

Wednesday, June 12, 2002

Introduction to the Asset Management Companies (AMCs) in Taiwan

Wednesday, June 12, 2002

Introduction to the Securitization of Financial Assets and Real Estate

Wednesday, June 12, 2002

New Administrative Penalties Law Will Make Tax Fines Farer

Individual taxpayers and businesses often neglect to file tax returns or make mistakes in them because they are not familiar enough with the intricacies of the tax code.

Wednesday, June 12, 2002

Optimal Tax Planning: Multinationals Consider Applying for Corporate Headquarters Status in Taiwan

A gradual but pervasive force among Taiwan's larger companies has been the trend toward "global deployment". Following this trend…

Wednesday, June 12, 2002

Rules on the Treatment of Seniority Pay and Applicable Tax Exemptions

With enterprises considering how best to respond to the new labor pension system going into effect in July 2005, a much-discussed question recently has been whether…

Wednesday, June 12, 2002

Tax Concession for Taiwan Logistics Centers

Wednesday, June 12, 2002

Taxes on Stock Given to Taiwanese Employees Abroad – The Cases of China and the Netherlands

Following the gradual development and spread of the global deployment business model, leading Taiwanese companies have had to dispatch important personnel…

Wednesday, June 12, 2002

Taxing Foreign Fundraising Fees - Commentary and Analysis

Amidst a host of disputes over taxing underwriting fees from corporations that raise funds by issuing securities overseas, the Ministry of Finance announced an executive order on 18 May 2004…

Wednesday, June 12, 2002

Ten Practical Applications of Taiwan's Trust System

With enactment of the Trust Act, the Trust Enterprise Act and trust-related portions of the tax code by the Legislative Yuan, Taiwan is now well on its way towards establishing a supportive legal environment for trusts.

Wednesday, June 12, 2002

The Effect of Transfer Pricing on Taxes and Corporate Management

After consulting both the OECD’s “Transfer Pricing Guidelines” and Section 482 of the USA’s Internal Revenue Act, the Ministry of Finance finally issued “Amendment to provisions of ‘Profit-Seeking Enterprise Income Tax Audit Standards’” on 2 January 2004.

Wednesday, June 12, 2002

The Impact of Taiwan's VAT on Overseas Orders and Local Firm Competitiveness

As the trend towards economic globalization continues, large international producers with complex logistics and supply models are becoming ever more common.

Wednesday, June 12, 2002

The Impact of Transfer Pricing on Corporate Disclosures

Aiming to plug tax collection leaks, impose reasonable tax burdens and bring Taiwan in line with the international trend…