Business practicalities in Taiwan

Land and property rights

Foreigners are allowed to acquire land in Taiwan, with some exceptions. Only foreigners from countries that allow Taiwanese people to acquire land receive the same privilege in Taiwan. Bilateral real estate investments between Taiwan and Australia are allowed under a reciprocal agreement, meaning that Australians can generally acquire property in Taiwan. Land used for certain purposes such as forestry, aquaculture, national defence and mining exploration is not eligible for foreign ownership.

Foreigners require approval from the local Land Registry Office for any land acquisitions. Depending on the industry, larger investments in land intended for infrastructure projects, economic development or agricultural purposes may require additional approvals from central authorities.

Cybersecurity

Cybersecurity policies in Taiwan are overseen by the Ministry of Digital Affairs. Official cybersecurity legislation applies only to the public sector and private businesses operating in critical infrastructure or those receiving public funding.

All businesses using IT systems are required to follow the Personal Data Protection Act which outlines how personal data should be collected, stored, used and protected. Businesses operating in Taiwan are required to inform those affected by a data breach if their personal information has been stolen, damaged, destroyed, lost or disclosed.

Intellectual property (IP)

Taiwan’s modern IP framework includes a fast-track option for applications and protections for certain types of IP such as trade secrets. Even so, businesses should be aware that Taiwan’s IP laws may still differ from Australia’s. For example, Taiwan’s copyright laws contain significant exceptions allowing material to be used for many educational, personal and non profit purposes. Similar to its rules for foreign land ownership, Taiwan only extends IP protection to foreigners on a reciprocal basis.

IP registration, protection and violation enforcement is overseen by the Taiwan Intellectual Property Office, an agency of the Ministry of Economic Affairs (MOEA). Taiwan is not a member of the World Intellectual Property Organisation (WIPO), but its legislation aligns with several international conventions such as the Trade-Related Aspects of Intellectual Property Rights, the Paris Convention for the Protection of Industrial Property, the Hague Agreement, the Berne Convention and the European Patent Convention.

Violation of IP and enforcement options:

Despite relatively strong IP protections, violations can occur. Businesses looking to litigate IP violations and seek enforcement have different options. Businesses are usually encouraged to handle disputes through settlement or mediation. Otherwise, IP violation cases will be heard in Taiwan’s dedicated IP Tribunal. Copyright and trademark infringement cases are considered criminal matters in Taiwan, whereas patent violations are tried as civil cases.

Businesses should keep up-to-date records of all IP documentation and consult local IP experts. IP Australia is also a helpful resource for businesses.

Import duties and tariffs 

Taiwan has been a member of the WTO since 2002 and complies with several international trade agreements. Its tariff schedule is based on the Harmonized Commodity Description and Coding System of the Customs Cooperation Council. As of 2025, average tariff rates were 4.8 per cent for industrial products and 16.6 per cent for agricultural products.

Australia and Taiwan engage in regular trade-related consultations such as the Bilateral Economic Consultations, the Joint Energy and Minerals, Trade and Investment Cooperation and the Agricultural Working Group to improve trade and investment in specified areas.

To find the tariff rates for specific goods and services from Australia, refer to Austrade’s Tariff finder tool.

Calculations and payments 

As a member of the WTO, Taiwan follows the Valuation Agreement on imported goods. Import duties are calculated by multiplying the good’s dutiable value by the import duty rate. Taiwan uses the Customs Cooperation Council Nomenclature to classify goods and set rates.

Other taxes and charges

For imported goods, Taiwan’s value-added tax (VAT) of 5 per cent is generally charged to buyers of goods or services by the seller. Sellers then deduct input VAT paid on purchases from output VAT and remit the balance to the Ministry of Finance.

Taiwan levies a commodity tax (excise duty) on certain goods, either at the time of factory dispatch or importation. Rates vary from 8 to 30 per cent as follows:

Export duties

Taiwan does not levy export duties. However, exporters must follow certain procedures ranging from a simple export application to a full examination of cargo and document review, depending on the goods being exported. Requirements can be found through Taipei Customs.

Import and export regulations

Taipei Customs, an agency of the Ministry of Finance (MOF), is responsible for the clearance of international cargo transported in and out of Taiwan. The Office of Trade Negotiations oversees the negotiation of international trade agreements and trade policy formulation. The tax authorities of the MOF are also involved in import/export proceedings for the purposes of VAT and commodity tax collection.

Certain imports and exports are subject to restrictions for health, safety, environmental or security reasons. These include some animals and animal products, vaping devices, nicotine and some chemicals. A full list of controlled items is available from Taiwan’s International Trade Administration.

To facilitate international trade, Taiwan uses CPT Single Window, an online portal for importers and exporters to declare goods, submit required documents and engage with different trade-related agencies in one place.

The National Taxation Bureau of Taipei oversees a comprehensive tax regime including income taxes for individuals and businesses, stamp duties and withholding taxes, as well as taxes on property, certain commodities and securities.

This section provides an overview of the taxes Australian businesses can expect to face when operating in Taiwan. Not all applicable taxes are covered in this guide and the information provided is of a general nature. Businesses should seek professional tax advice for understanding the taxes specific to their activities.

Table 1: Overview of Taiwan’s taxes for businesses

Corporate Income Tax (CIT)

Non-resident companies are taxed on the portion of business income generated from Taiwanese activities. If a non-resident company does not have a fixed presence in Taiwan, they will be subject to withholding taxes on their Taiwanese income. Australia and Taiwan have a tax treaty which allows Australian businesses to pay withholding taxes at the rates listed in Table 1.

Non-resident companies with a fixed business presence in Taiwan are treated like resident companies and are subject to a 20 per cent corporate tax rate. Businesses may be subject to an additional 5 per cent profit retention tax if their current earnings are not distributed by the end of the financial year. Branch offices are exempt from the profit retention tax.

Taiwan offers a range of tax incentives for businesses, including tax credits for research and development activities and investments in technology, as well as profit tax exemptions for businesses with sufficiently high levels of investment in property, machinery, software and other technology. More information regarding these incentives is available in Section 3.2.

Personal income tax 

In general, foreigners are taxed on personal income at the same rates as residents of Taiwan once they have resided in Taiwan for more than 183 days (see Table 2). If a foreigner spends less than 90 days in Taiwan, they pay a flat 18 per cent withholding tax on any wages earned from Taiwanese-registered businesses. If a foreigner spends more than 90 days but less than 183 days in Taiwan, they must pay a flat 18 per cent withholding tax on taxable salary income, regardless of where it was paid.

Table 2: Personal income tax rates

Indirect taxes

Business taxes: All goods and services in Taiwan are subject to value-added tax (VAT) of 5 per cent. Some businesses are also subject to the gross business receipts tax (GBRT) at the following rates:

• 5 per cent for financial institutions and insurance brokers
• 2 per cent for investment firms, securities traders, short-term commercial paper enterprises and pawnshops 
• 1 per cent for reinsurance businesses.

Property taxes: In Taiwan, land and buildings are taxed on their officially assessed value. Buildings used for non-residential purposes are taxed at a rate between 1.5 and 5 per cent. Sellers of land are subject to the land value increment tax (LVIT), which is levied on the officially assessed value of the land during the period of ownership. LVIT rates range from 20 to 40 per cent. An additional deed tax of 2 to 6 per cent is levied on the sale, exchange, inheritance, partition or acquisition of immovable property.

Securities transaction tax: All securities transactions are subject to a 0.3 per cent tax on the value of proceeds from the sale of domestic shares. Transactions involving corporate and financial bonds issued by Taiwanese companies are exempt from this tax.

Luxury tax: Several categories of luxury goods are subject to Taiwan’s 10 per cent luxury tax. These include vehicles, private jets and helicopters valued over NTD 3 million (AUD 144,276), yachts longer than 30.48 metres, preserved wildlife products worth more than NTD 500,000 (AUD 24,046).

Auditing and accountancy play a vital role in enhancing transparency and accountability in a business, especially one engaged in a foreign market. It increases business performance by identifying risks and highlighting areas for improvement.

Accounting standards

Local and foreign businesses are required to comply with Taiwan’s accounting standards. For public companies, Taiwan mandates the use of International Financial Reporting Standards (IFRS). Private companies may choose between IFRS, and the local Enterprise Accounting Standards developed by the Accounting Research and Development Foundation (ARDF).

Although the Australian Accounting Standards are also based on IFRS, Australian businesses with Taiwanese operations should review the differences between jurisdictions to ensure their records are compliant with local authorities.

Financial reporting in Taiwan is overseen by the Ministry of Economic Affairs (MOEA) while accounting standards are managed and developed by the ARDF.

Statutory audits

Taiwan’s Company Act mandates that companies must have their annual financial statements audited by a certified public accountant (CPA) in Taiwan if they are publicly listed or if they have:

• more than NTD 30 million (AUD 1.44 million) in equity; or
• more than NTD 100 million (AUD 4.81 million) in net operating revenue or
• more than 100 employees

Audits in Taiwan are conducted under the Republic of China Generally Accepted Auditing Standards which align with the International Standards on Auditing.

Books and records

Financial records should generally be kept in NTD. If records are kept in a foreign currency for day-to-day business needs, they should be translated into the local currency for year-end financial reporting and filings. Companies typically use 31 December as their financial year end, but with approval, may choose to use an alternate date.

Records should be submitted in Chinese. All accounting records should be retained for at least five years. Companies are required to keep all financial statements for at least ten years.

Quality control

Audits in Taiwan are overseen by the Financial Supervisory Committee (FSC). Under the Certified Public Accountant Act, the FSC is certified to regulate statutory audits in Taiwan, perform quality assurance investigations and take disciplinary actions against CPAs or CPA firms if they are found guilty of misconduct or endangering the public interest.

The FSC is also responsible for licensing CPAs in Taiwan and providing ongoing professional development. The FSC is a member of the International Forum of Independent Audit Regulators.

Doing business in Taiwan will often require employing local and foreign workers. Understanding Taiwan’s labour market regulations, recruitment methods and local management styles is crucial to building and supporting an effective team.

Labour market

Skill level: Taiwan has a highly skilled workforce. Taiwan ranks second globally in the percentage of its population with a higher-education degree, and Taiwanese students consistently outperform the OECD average on international standardised tests. Since 2009, the Taiwanese education system has tailored its curriculum to train workers for specific industries such as healthcare, technology, logistics and innovation. Although labour force participation is high by international standards, Taiwan experiences labour shortages, particularly among mid-level workers.

Employment contracts: Both domestic and foreign workers may be employed under fixed and non fixed term contracts. Once an employment contract is agreed upon by both parties, employers must maintain a worker record card indicating employee name, sex, address, birth date, place of origin, educational background, national identification card number, employment start date, wage, labour insurance information, medical records and other significant information.

Minimum wage: Taiwan’s Ministry of Labor (MOL) sets minimums for both hourly and monthly wages. From 2024, the monthly minimum wage is NTD 27,470 (AUD 1,280). The hourly minimum wage is NTD 183 (AUD 8.52).

Human resources and employment law: The Labor Standards Act is the main employment law in Taiwan. Overseen by the MOL, it regulates employment contracts, standards and conditions for all employees under contract with an employer.

Working hours: In general, regular work hours must not exceed eight hours per day or 40 hours per week. However, employers may engage with labour unions or employee associations to adjust regular working hours by redistributing the equivalent hours of two working days over a two-week period, as long as each day is not extended by more than two hours. Employers may also redistribute regular working hours over an eight-week period. In either case, the total hours worked in a single week may not exceed 48.

Holidays: After six months of continuous employment, workers are entitled to paid annual leave. The table below summarises the amount of leave guaranteed to employees based on their tenure. In practice, many employers offer more than the minimum required leave.

Overtime: Employers are required to pay overtime if working hours exceed those stated above. Total working hours shall not exceed 12 per day and overtime hours are capped at 46 per month. The rate of pay depends on the amount of overtime worked.

Sick leave: Medical leave is covered under the MOL’s Regulations of Leave-Taking Workers. If an employee is not hospitalised, up to 30 days of leave are permitted. In cases of more severe illness requiring hospitalisation, up to one year of leave is permitted. For the first 30 days, workers are entitled to 50 per cent of their regular wage.

Social, health and unemployment insurance contributions: Employees and employers make compulsory contributions to three Taiwanese social security programs including the Labor Insurance Program (LIP), National Health Insurance Program (NHIP) and the Labor Pension Program (LPP). The Taiwanese authorities make additional contributions to individual accounts based on income level and disability status. As of January 2026, foreign professionals a are now eligible for the Labour Pension Act without needing to obtain permanent residency.

Contribution amounts are summarised as follows.

Ending employment: Employers may terminate contracts with notice if they experience serious business hardships or if workers are unable to perform their duties. In general, employers may not terminate employment contracts without advanced notice unless employees have misrepresented themselves or violated the terms of their contract, are violent or destructive, become incarcerated, or are absent without notice for more than three consecutive days, or six days in any month.

Employees may terminate contracts without notice when employers are found to have misrepresented themselves or fail to compensate the employee properly, where the work or working conditions are hazardous to employee health or if the employer breaches the terms of the contract. For all other terminations with advanced notice, required notice periods are as follows.

Severance pay: For contracts terminated by the employer without advanced notice, employers must pay the employee’s wages for the advanced notice period. In cases of termination with notice, severance pay is based on the length of employment, summarised as follows.

Recruiting staff

Online advertising: Online job advertisements are an effective way to access talent in Taiwan. Internet use is widespread and many employers recruit online to increase the likelihood of finding skilled workers. Several job advertisements websites may be useful in Taiwan.

• 104 is the oldest and largest online job board in Taiwan. It’s the top choice for many employers and entrepreneurs. Navigating the website is likely to require some familiarity with Chinese.
• LinkedIn provides valuable intelligence when searching for employees with a particular skillset. Many employers and recruitment agencies use the platform to target potential candidates and communicate with them. LinkedIn is a popular platform for English speakers.
• CakeResume is another widely used recruitment platform in Taiwan.

Executive search: When looking to hire for executive and senior roles, an executive search firm can facilitate more tailored searches. As a hub for advanced technology firms in the region, several global firms such as Boyden, Keller, Korn Ferry and Michael Page have offices in Taiwan. HRnetOne is a top regional firm in Asia that specialises in recruitment for a wide range of industries.

Work permits: Foreigners are eligible for work permits in Taiwan if they are performing specialised or technical work, managing a foreign company, teaching, or are employed in athletics or performing arts. Taiwan offers some professionals an Employment Gold Card, which includes a work permit, residence visa, Alien Residence Certificate and re-entry permit. Short-term permits may be available for contracted foreigners performing other types of work. Taiwan also issues work permits for self-employed entrepreneurs to pursue innovative work or new business development. Work permit applications are overseen by Taiwan’s Workforce Development Agency. More information about living and working in Taiwan is available from Talent Taiwan.

In most cases, foreign companies establishing commercial operations in Taiwan will require a local bank account. Foreign companies may keep accounts denominated in Taiwan dollars (NTD) or other foreign currencies.

Financial institutions in Taiwan are designated as commercial banks, foreign banks, banks for a special purpose or as investment and trust companies.

Table 3: Financial institutions in Taiwan

Australian banks in Taiwan

ANZ has been operating in Taiwan for over 40 years. They offer a range of corporate and institutional banking services. 

Foreign exchange controls 

Taiwan imposes no foreign exchange controls on trading activities, investment transactions or insurance payments. With approval from the Taiwanese authorities, repatriation of capital is also unlimited. Remittances both inward and outward require approval from the Central Bank if they exceed NTD 5 million (AUD 240,458) for individuals or NTD 50 million (AUD 2.4 million) for businesses.

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