When we move to Taiwan in 2024, I plan to continue running our small (micro) business in Taiwan. I will (hopefully) have a Gold card, and as a result, an open work permit. I plan to do everything required to set up the business in Taiwan legally (which shouldn’t be too hard in that I will personally be setting it up and will not need a work visa or anything from it), and get an accountant to help facilitate if necessary (preferably not).
Is there a way to as a sole proprietor to take the profits from your company as income? In Canada, with a very small business, you can simply claim the profits that you make from the business as your individual income come tax time. Is this possible in Taiwan? Or do you need to pay yourself as an employee (salary) or through dividends? Does anyone have experience with this, especially with smaller companies? Any experience anyone has in this area would be greatly appreciated.
Yes, but if the current proposed legislation gets passed, (as I read it) you should be able to apply for an APRC after 3 years, which is before the Gold card expires. Then, you would not need to renew the Gold card, you just could apply for the APRC, as long as your income was at the appropriate level, which is much lower than what is required for the Gold card.
Most people making a ton of money in their business incorporate and pay themselves a salary. Or else their tax is going to be out of control. Or they do like many Taiwanese do, not declare it and do everything in cash… I got a neighbor who claims to make over 400k a month and pays no tax, and his business is “do not need to use fa piao”. Sometimes I wonder why Taiwan doesn’t seem to audit people…
A lot of tax fraud in Taiwan for sure. But it is changing (albeit too slowly) as the state is looking for ways to finance itself. A few years back tax office went after all the foreigners.
Incorporating doesn’t necessarily protect you from tax, you need to be careful, in particular if the only goal of incorporation is to avoid tax.