Taiwan Branch Office vs Limited Company

Business Entrepreneurship
1

Hi,

I’ve recently won a business consulting contract (UK company, with an Asia remit) and I’d like to (re)locate to Taiwan.

The initial advice I was given was to set up a Taiwan branch office, to avoid paying withholding tax on any Taiwan profits I send back to the UK.

However, since my profits after salary will be small, I will not be repatriating profits to the UK. Equally, I don’t intend on moving back to the UK.

I’m therefore thinking that setting up a Taiwan limited company will be less cumbersome in legal and accounting (than having to open a UK company with also Taiwan branch office).

My question is are there any downsides/extra admin/costs in opening a Taiwan company compared to a branch office?

And am I correct in saying Branch Office and Limited Company both only have a minimum turnover requirement (NTD 3m), no minimum profit?

Thanks for any help,
Dave

1 Like
2

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I don’t have the answer for your situation, but here is my CPA. He can give you a better opinion than me.

3

Thanks Marco. I’ll give him a try

4

Why do the office route and not a gold card? Surely you can qualify for it on income?

5

That’s what I initially thought……but the Gold Card website seems to suggest I need an employment contract which I assumed was required from a Taiwan company rather than a consulting contract from a UK company which I have. I’ll maybe then try to apply for the Gold Card first and see if I’m successful.

Thanks for the advice,
Dave

6

First advice for living in Taiwan is to completely ignore any advice a government department or website tells you. Speak to Marco’s CPA ASAP.

1 Like
7

This is misleading.

They will only accept Taiwan employment contracts. Not foreign employment contracts. If you have a foreign employment contract you need to provide a tax document instead that proves income.

Why? I’m not sure.

8

Thanks for that info; its very helpful. I’ll dig out my previous tax documents. Is the minimum income route virtually a guarantee for getting a Gold Card? It just seems too easy if you have thd income!!

9

It’s very easy! GC Application numbers are way down, so it shouldn’t be much of a wait to process it.

10

Great! Many thanks for your advice. Much appreciated :pray: