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Thanks for the advise. As for your question, I'm an American citizen and generally get advise to not directly create a Taiwan company as the tax and banking sy

by ddxv 3y ago

Thanks for the advise. As for your question, I'm an American citizen and generally get advise to not directly create a Taiwan company as the tax and banking system are incredibly bureaucratic. Having painfully started a subsidiary here in the past, though not an actual TW corp, makes me suspect the advise I hear is worth listening to.

Digory 3y ago
Sounds reasonable. People hold IP in LLCs all the time. Obviously, though, the outcome depends on TW law and its loopholes as much as the IRS and state law. And the cheapest US LLC services just won't have any clue about any of that.
digianarchist 3y ago
If you’re operating a foreign company from Taiwan then it’ll probably be deemed a Taiwanese company anyway for tax purposes. Check local laws.
jake_morrison 3y ago
If you need a company in Taiwan, it's generally best to have your main company outside and have a branch in Taiwan. It has significant tax benefits, particularly for foreigners. A branch can repatriate profits to the parent company, after paying Taiwan tax. If you have a standalone Taiwan company, then you have to pay dividends, then pay personal tax on it. If you are not resident in Taiwan, then you would pay 20% tax on those dividends. There is also a 5% tax on retained earnings. Another benefit is that if your company pays someone overseas for services, then Taiwan considers that "Taiwan source income", and they owe 20% tax on it. Other countries like Hong Kong would not tax that money. As foreigner, if you leave, then you would find it difficult to run your company remotely. So you might as well set up somewhere else.
louison11 3y ago
A follow up question I have is why create a company if you think you’re gonna have no to little revenue? Why not just wait until you actually make money to register? Adding a business entity before having any cash flow will probably only make your life more complicated.

by ddxv 3y ago

Digory 3y ago

Sounds reasonable. People hold IP in LLCs all the time. Obviously, though, the outcome depends on TW law and its loopholes as much as the IRS and state law. And the cheapest US LLC services just won't have any clue about any of that.

digianarchist 3y ago

If you’re operating a foreign company from Taiwan then it’ll probably be deemed a Taiwanese company anyway for tax purposes. Check local laws.

jake_morrison 3y ago

If you need a company in Taiwan, it's generally best to have your main company outside and have a branch in Taiwan. It has significant tax benefits, particularly for foreigners. A branch can repatriate profits to the parent company, after paying Taiwan tax. If you have a standalone Taiwan company, then you have to pay dividends, then pay personal tax on it. If you are not resident in Taiwan, then you would pay 20% tax on those dividends. There is also a 5% tax on retained earnings. Another benefit is that if your company pays someone overseas for services, then Taiwan considers that "Taiwan source income", and they owe 20% tax on it. Other countries like Hong Kong would not tax that money. As foreigner, if you leave, then you would find it difficult to run your company remotely. So you might as well set up somewhere else.

louison11 3y ago

A follow up question I have is why create a company if you think you’re gonna have no to little revenue? Why not just wait until you actually make money to register? Adding a business entity before having any cash flow will probably only make your life more complicated.