The main private company structure in Taiwan is the company limited by shares, formed under the Company Act and registered with the Ministry of Economic Affairs (MOEA). A limited company is also available, but foreign groups most often choose a company limited by shares, which is flexible for later capital increases and share transfers.

Compliance is spread across the MOEA or local authorities for company registration, the Ministry of Finance and the National Taxation Bureau for income tax and business tax, the Investment Commission for foreign investment approval, the Ministry of Labor for employment, and the Bureau of Labor Insurance and the National Health Insurance Administration for payroll. Taiwan's tax system is based on set filing windows that are fixed by law and carry penalties for missing them.

This guide explains the annual cycle for a company limited by shares, with attention to foreign-owned subsidiaries. Updated November 9, 2026. Rates, thresholds and filing windows are updated through tax reform, and some sources differ on details, so confirm specific dates with the National Taxation Bureau, the MOEA or a Taiwan CPA.

Entity compliance Taiwan: the quick answer

• File the annual profit-seeking enterprise income tax return in May (1 to 31 May) for a calendar-year company, after financial statements are prepared and, where required, certified by a CPA.

• Pay provisional tax in September (1 to 30 September) based on half-year income.

• File business tax (VAT) returns every two months, generally by the 15th of the following odd-numbered month.

• Hold the shareholders' meeting and approve the financial statements within six months of year-end, and keep the company registration and beneficial owner information current.

What determines a company's compliance requirements?

Size, ownership, sector and activity determine the workload. Companies must have financial statements certified by a CPA once capital or revenue passes the thresholds, and many foreign-owned subsidiaries are audited for group reasons. Regulated sectors such as banking, insurance, telecommunications and education have additional approvals.

The fiscal year in Taiwan is the calendar year for most companies, although a different year can be approved. Foreign investors need approval or notification under the foreign investment rules before the company is registered, and the type of investor and sector affect the process.

Annual entity requirements in Taiwan: the core checklist

1. Shareholders' meeting and financial statements

A company limited by shares must hold an annual shareholders' meeting, and the board must submit the business report, financial statements and profit distribution proposal for approval. These are generally prepared within six months of year-end. Where a company has a sole corporate shareholder, the board or the shareholder can approve the statements by resolution.

2. CPA certification

The financial statements must be certified by a CPA when the company reaches the statutory threshold on capital or revenue, and the certified report is used with the tax return. Foreign-owned companies often have the statements certified so that they can remit profits abroad, because the bank asks for approved documents.

3. Annual income tax return

The annual income tax return for profit-seeking enterprises is filed in May for a calendar-year company, with the final payment made at the same time, and the filing window is fixed by law. The return includes tax computations and supporting schedules, and the National Taxation Bureau may review it afterwards. Late filing leads to penalties, so the audit timetable should be planned backwards from May.

4. Provisional tax

Companies pay provisional tax in September based on half-year profit and the previous year's results. The payment is credited against the final tax in May. An underestimate may lead to penalties, so finance teams should model the half-year result in August.

5. Registrations and beneficial owners

Changes in directors, supervisors, capital, address, business scope and shareholder structure must be registered with the MOEA or the local authorities within 15 days. Taiwan's Company Act requires companies to report beneficial owner information to the competent authority, and the information should be kept up to date following ownership changes.

Tax and indirect tax obligations

The profit-seeking enterprise income tax rate is 20 percent, with a partial exemption for companies with low taxable income. An alternative minimum tax at 12 percent may apply to companies with large tax-exempt income. An undistributed earnings surtax of 5 percent applies to profits that are not distributed or reinvested by the deadline, which is an important planning point for private companies with large retained earnings.

Business tax, similar to VAT, is generally 5 percent and is filed every two months, with the return due on the 15th of the odd-numbered months. Foreign companies selling services to Taiwanese consumers may need to register. Withholding tax applies to payments to non-residents: dividends are generally 21 percent for foreign shareholders, reduced by treaties, and service fees, royalties and interest also carry withholding. Taiwan also levies stamp duty, land value increment tax, securities transaction tax and other transaction taxes.

Foreign-owned subsidiaries

Foreign investors usually need approval from the Investment Commission or must file under the simplified rules before investing, and the approval is the basis for later remittance of dividends and capital. After the investment, the company must file the change in shareholding or capital with the Investment Commission or file annual reports as required by the approval, so keep the approval letter and conditions on file.

Transfer pricing rules require arm's length pricing for related-party transactions, and companies above thresholds must prepare documentation. Large multinational groups may need country-by-country reports and global minimum tax compliance. Foreign exchange rules apply to remittances, and banks require supporting documents such as tax payment evidence and approved financial statements.

First-year and event-triggered obligations

In the first year, secure the foreign investment approval, register the company with the MOEA, register for tax and business tax with the tax authority, open a bank account, and register with labour insurance, the National Health Insurance and the labour pension system. Event-driven filings include changes in capital, directors, address, business scope and name, plus share transfers.

A dormant company may be subject to dissolution orders, and liquidation requires notification to creditors and tax clearance. Keep filings up to date even when activity is low.

Employment and local requirements

Employers must enrol employees in labour insurance, national health insurance and the labour pension system, with a mandatory employer contribution of at least 6 percent to the pension account, and withhold income tax on salaries. The Labor Standards Act sets rules on working hours, overtime, leave, severance and termination. Foreign employees need work permits and residence documents, and the company should check the salary and qualification requirements. Year-end filings for withholding statements are generally due in January.

Record-keeping and governance in Taiwan

Keep the articles, shareholder register, board and shareholder minutes, approved financial statements, tax returns, business tax records, uniform invoice records and foreign investment approval documents. Accounting vouchers and books should be kept for at least ten years under Taiwanese accounting rules. Maintain the company seals, as Taiwan relies heavily on registered chops, and record who has authority to use them. Keep a calendar for May, September and bimonthly filings, because the National Taxation Bureau does not send reminders for every return.

Build a compliance calendar for Taiwan

A compliance calendar turns the rules above into dated tasks with named owners. Start from the financial year-end and the incorporation anniversary, then add the recurring monthly and quarterly items. Review it each quarter, because deadlines, extensions and registry systems change.

• Within 15 days of any change: register director, capital or address changes.

• 15th of odd-numbered months: business tax (VAT) return.

• January: withholding statements and employee income reports for the previous year.

• 1 to 31 May: annual income tax return for a calendar-year company.

• 1 to 30 September: provisional tax payment.

• Within six months of year-end: shareholders' meeting and approval of financial statements.

Common mistakes

• Missing the fixed May window for the annual return and relying on extensions that may not exist.

• Underestimating provisional tax in September.

• Forgetting the 5 percent undistributed earnings surtax in planning dividends.

• Remitting profits abroad without the investment approval and approved financial statements.

• Leaving beneficial owner information out of date after a share transfer.

• Losing track of who holds the company chops.

Entity compliance Taiwan: frequently asked questions

What is the main private company type in Taiwan?

The company limited by shares, registered with the MOEA, is the standard structure and the usual vehicle for foreign-owned subsidiaries.

When is the Taiwan annual income tax return due?

For a calendar-year company, the return is filed in May, with the filing window fixed in law.

What is provisional tax?

An advance payment made in September based on half-year profit, which is credited against the final tax payable in May.

What is the corporate tax rate?

The profit-seeking enterprise income tax rate is 20 percent, with a partial exemption for companies with low income.

What is the business tax rate?

The standard business tax, similar to VAT, is generally 5 percent, filed every two months.

Do foreign investors need approval?

Yes. Foreign investors generally need investment approval or a filing with the Investment Commission, which supports later remittances.

How CoverPin can help

CoverPin helps finance, legal and operations teams track entity obligations across countries. See our international entities overview, learn about compliance advisory, or browse more guides in our legal and compliance resources.

This article is general information, not legal, tax or accounting advice. Confirm current requirements with the relevant authority or a qualified local adviser before acting.