We have opened a company, 有限公司, and I’m wondering what the rules are on the owner being hired and receiving a salary which could then be deducted from taxes from the company (and they obviously pay their income taxes separately).
The accountant said nope. The business bank account is used as your company y and personal bank account.t and the only difference is the invoices for personal are not used in deductions, which seems SUPER sketchy to me.
Questions.
Is the business bank account also used for the owners personal and living expenses?
Does the business owner ever hire themself into the company and thus collect a salary?
This is not a foreign ID company, everyone has Taiwan citizenship.
Cheers for any advice and.if possible government links related at this type of.thing.
Source please. Shareholders appoint directors (ie themselves), directors can appoint other executives, they can all be employees with salary, NHI and labor insurance.
They can, but the premise that executives are not employees has been accepted firmly enough that the MOL put it out years ago as a general rule.
If the executives are appointed by the company according to the Corporate Act, they have bigger autonomy over their job responsibilities since they have an appointment relationship with the business entity. As a result, executives appointed by the company to run the company business are not worker/labor defined in the Labor Standards Act.
Technically that statement just makes them non-workers, but it’s not hard to find court cases also confirming them to be non-employees.
And exceptions have also been found, depending on how much subordination a court deems a contract to have.
A non-employee is usually a mandatary (受任人), and income arising from a mandate is supposed to be “income from professional practice” (執行業務). I don’t know how often this standard is ignored.
