Tax Services for FINIs in Taiwan

Investing in Taiwan’s securities market presents administrative challenges for foreign institutional investors (FINIs), which is further compounded by an increasingly complex and demanding tax environment that is characterized by constant legislative, regulatory, and judicial changes. Besides the typical tax compliance issues, other key concerns for FINIs in Taiwan include the applicability of withholding taxes, the provisions of double taxation agreements, and the Alternative Minimum Tax. The combination of these equally important streams require a FINI’s tax department to be agile, well-versed in internal and external developments, and able to deal with competing goals and interests. Understanding the tax impact on investment activities in multiple jurisdictions is vital for an investor’s success.

Scope of Services

In particular, PwC’s FINI practice is dedicated to helping clients assess their Taiwan investment tax position and provide support so that they meet local statutory tax filing requirements. Our practice is structured as a dedicated, specialized FINI team consisted of well respected local and international tax professionals who offer a timely and efficient compliance solution encompassing the following:

• Reviewing investment income tax liabilities;
• Reviewing taxes withheld by withholding agents;
• Reviewing taxes for transactions that were not subjected to withholding at source;
• Assisting investor prepare reporting for special transactions, e.g. bond trading, securities borrowing and loan, etc.; and
• Preparation and filing of necessary returns and schedules.

PwC can also deliver a range of technical support customized to meet your specific FINI tax needs, including:

• Applying for a more favorable tax rate, particularly for those investors that reside in countries that have Double Taxation Agreements with Taiwan;
• Providing consultancy on investment-related tax and legal issues;
• Assisting investors to respond to inquiries from tax regulators;
• Tax audit support; and
• Helping investors stay abreast of FINI tax and regulatory developments that may affect their businesses, both locally and globally.