Corporate income tax (or ‘profit-seeking enterprise income tax’) is levied by Taiwan on all registered profit-seeking enterprises including companies, sole proprietors, partnerships and other forms of business organisation organised for profit.

Both foreign and locally owned firms operating within Taiwan and which are classed as profit-seeking enterprises are subject to the following tax rates:

1.For taxable incomes up to NT$50 000 no income tax liability is incurred
2.For incomes between NT$50 000–NT$100,000 the tax payable is 15 per cent of total taxable income to a maximum not exceeding 50 per cent of the portion of taxable income in excess of NT$50 000
3.For taxable incomes above NT$100,000 the portion in excess of NT$100,000 is taxed at 25 per cent

Income tax law is complex and there are implications for resident and non-resident tax-payers. You should contact a tax consultant or authority to determine your own particular circumstances.


Taiwan is in the process of transforming from a manufacturing to a services-based economy. It is national policy to develop Taiwan as an economic hub for the Greater China region. Within this national objective, Taiwan accords a high priority to the establishment of Taiwan as a regional financial center within East Asia.

The three principal agencies regulating the capital and securities markets in Taiwan are:

1.Ministry of Finance (MOF)
2.Securities and Futures Commission
3.Taiwan Stock Exchange

The MOF is the primary regulator of the bond market with the Central Bank of China acting as the issuing agent for all government securities. The Securities and Futures Commission regulates and controls all publicly offered securities and oversees the exchanges.

The long awaited passing of the financial holdings laws in November 2001 have meant that for the first time, cross group mergers in the finance sector are legal. We have seen the merger of a number of major financial groups including Fubon Bank and Taipei Bank to create one of the largest financial institutions in Taiwan. This has spurred considerable interest in financial services, software and systems as efficient financial institutions are seeking new ways to increase their competitiveness and Australian companies are supplying a range of consultancy services, systems and software to Taiwanese institutions.

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