I believe towards the end of your Reps office 1 year period you need to show in your report for the years operation that you have achieved something like NT$3 million in revenue, how is this supposed to be achieved when a reps office is not supposed to “sell” anything. Is it in getting contracts or ?
Rep Office doesn’t need to show revenue. You can’t earn revenue legally. You just need to show proof of rep office activity - contracts, negotiations, etc.
I used to run a representative office in Taiwan. I had an inter-company agreement with the HQ abroad and invoiced them for our services here (cost+10%). The cost was essentially payroll + some admin expenses. This can also be VAT free if the HQ is abroad and services are provided internationally.
From what I understand a Reps office cannot generate an invoice and does not have to have a bank account, so how did you “manage” this?
Ahh sorry, I mixed up the vocabulary. I actually used a branch office entity. Apologies.
No problem, thank you
I don’t believe there is a requirement to show revenue.
I am working through this right now and the whole reason we chose a rep office was no need to show revenue and not taxable as a result.