Entering the Taiwan Market: Key Differences Between a Subsidiary and a Branch

When a foreign company plans to conduct business in Taiwan on an ongoing basis, it will often consider a Taiwan subsidiary or a Taiwan branch of the foreign company. Both provide a business presence in Taiwan, but they differ as to who is the contracting party, who bears the debts, whether third-party investment is possible, and what procedures apply when profits are transferred abroad. Comparing only the convenience of establishment may lead to unforeseen liability or tax issues during operations, so the decision should take the entire life cycle of the business into account.

A Taiwan subsidiary is an independent legal entity incorporated under Taiwan law. Although a foreign parent company may be its shareholder, the subsidiary has rights and obligations distinct from those of its parent. By contrast, a Taiwan branch of a foreign company is part of its foreign head office and is a business presence without separate legal personality. Although it is sometimes referred to informally as a local office, this article uses the term “branch” to make the legal relationship clear.

The more suitable form depends on the industry, investor composition, contractual structure, licenses and permits required in Taiwan, number of employees, financing method, use and repatriation of profits, future admission of partners or listing plans, and the plan for discontinuing the business. When a parent company based in Korea enters Taiwan, it must consider not only Taiwan law but also Korean accounting and tax rules and outbound-investment procedures. The discussion below compares legal personality, taxation, liability, financing, investment tax credits, the income tax agreement, and exit procedures, in that order.

1. Legal Personality and Ownership Structure

A branch is part of a foreign company and therefore has no shareholders of its own. To invest jointly with a third party in a Taiwan business, the parties should consider options such as forming a Taiwan subsidiary and determining its shareholder structure. Liability, voting rights, financing, licenses and permits, and tax treatment must be assessed in light of the investment relationship and business plan.

Article 1 of Taiwan’s Company Act defines a company as a corporate juristic person organized, registered, and established under the Act for the purpose of profit making. A Taiwan subsidiary established under the Act is therefore a Taiwan legal entity distinct from its foreign parent. The subsidiary can lease an office, enter into commercial and employment contracts, acquire property, and become a party to litigation in its own name. As a rule, rights and obligations arising from its contracts also belong to the subsidiary. Even if the parent sets management policies or appoints officers, the two companies do not thereby become a single legal person.

The scope of liability applicable to a subsidiary depends on the company form actually selected and the conduct at issue. For example, under Article 99(1) of the Company Act, the shareholder of a limited company is generally liable to the company only up to the amount of the shareholder’s contribution. Article 99(2), however, creates an exception when a shareholder abuses the company’s status as a juristic person, thereby making it difficult for the company to satisfy a specific debt, and the abuse is serious: the shareholder may be liable to the extent necessary. If a shareholder or parent company has separately provided a guarantee or directly participated in a tort, liability arising from that guarantee or conduct must also be considered. Limited liability is therefore an important starting point, but it does not guarantee that liability will be limited to the investment amount in every situation.

A foreign company that intends to conduct business in Taiwan in its own name must comply with the Company Act provisions governing branches. Under Article 371 of the Company Act, a foreign company may not conduct business in Taiwan in the foreign company’s name without registering a branch. Article 372 requires the foreign company to appropriate funds exclusively for the operation of its Taiwan branch and to designate a responsible person in Taiwan. These are head-office funds for Taiwan operations, not shares or equity interests in the branch. Designating a responsible person does not turn the branch into an independent company; it enables the foreign company to conduct its affairs in Taiwan and clarifies responsibility.

When planning to operate a Taiwan business with a third party, agreeing only on the investment percentages is not enough. The parties should also address voting rights, director appointments, consent rights over key matters, additional investment, measures to address funding shortfalls, use of intellectual property, profit distribution, non-compete obligations, transfers of ownership interests, deadlock, and termination of the business. Joint investment in a Taiwan subsidiary has the advantage of allowing these relationships to be structured within the company’s shareholder framework. However, a contractual joint venture for a particular project, a separate special-purpose structure, or another lawful method may also be available, so a subsidiary should not be treated as the sole solution for every joint venture.

Under a branch structure, the foreign company is the ultimate legal entity responsible for branch operations. The head office should specifically define the contracts that the responsible person in Taiwan may enter into, banking authority, personnel authority, reporting lines, budget approval, and internal controls. If a subsidiary is chosen instead, the articles of incorporation, governance bodies, allocation of powers among shareholders, and service, loan, and license agreements between the subsidiary and parent should be separately documented. What matters more than the label is whether actual authority and transaction flows conform to the legal structure.

Licenses and permits cannot be determined by legal personality alone. Industry-specific rules may separately prescribe the applicant, minimum capital, qualified personnel, place of business, foreign-investment review, or qualifications of the responsible person. The fact that a subsidiary or branch can be registered does not necessarily mean that it may engage in a particular regulated business. The proposed business activities should be broken down, and the contracting party and license holder for each activity should be identified first.

2. Tax and Profit Remittances

Subsidiaries and branches are generally subject to 5% business tax and 20% profit-seeking enterprise income tax. Under Taiwan domestic law, dividends paid by a Taiwan subsidiary to a foreign parent are subject to 21% withholding, but the ceiling is 10% if the requirements of the Taiwan–Korea Income Tax Agreement are met. A foreign company’s Taiwan branch generally incurs no additional withholding when it remits after-tax profits to its head office because the remittance is not a dividend. A profit-seeking enterprise whose head office is outside Taiwan is exempt from filing the return for the 5% additional tax on undistributed earnings.

Business tax is an indirect tax that applies to supplies of goods or services in Taiwan. The general rate is 5%, and the usual tax period is two months. However, zero-rating, exemptions, special rates, and eligibility for input tax credits may vary according to the nature of the transaction. Both subsidiaries and branches must consider their business-tax obligations if they conduct taxable business in Taiwan, but the 5% rate alone does not mean that their actual tax payments will be the same.

Profit-seeking enterprise income tax is calculated on the taxable income of a profit-seeking enterprise. The general rate is 20% when taxable income exceeds the statutory threshold. It is not a tax calculated by simply multiplying gross revenue by 20%; the tax base and actual amount due vary with revenue recognition, deductible expenses, depreciation, utilization of losses, tax credits, and transfer-pricing adjustments. Even with the same revenue and tax rate, the subsidiary’s and branch’s tax returns may produce different results if their contractual structures and allocation of expenses differ.

When a Taiwan subsidiary distributes after-tax profits to its foreign parent, the subsidiary and shareholder are separate legal persons. Under Taiwan domestic law, dividends paid to a foreign shareholder are subject to a 21% withholding rate. However, if the parent is a Korean resident, falls within the Taiwan–Korea Income Tax Agreement, and meets the applicable requirements, including being the beneficial owner of the dividends, the Agreement’s 10% ceiling may be considered. The treaty rate does not apply automatically merely because the recipient is in Korea. Current practice should be checked for the residence certificate, beneficial-ownership analysis, timing of payment and filing, and any required application or refund procedure.

Profits generated by the Taiwan branch of a foreign company are not profits earned by one company and distributed to the shareholder of another; they are part of the profits belonging to the foreign head office. Accordingly, after profit-seeking enterprise income tax has been reported and paid in Taiwan, remitting the branch’s after-tax profits to the head office is distinct from paying a dividend and generally incurs no additional dividend withholding at the branch level. This does not mean that all payments between a branch and its head office always receive the same treatment. If a transfer includes interest, royalties, service fees, payment for assets, or a payment to a third party, the substance and withholding obligation of each payment must be assessed separately.

The additional tax on undistributed earnings must also be considered according to the legal structure. If a Taiwan subsidiary retains profits, the 5% additional tax on undistributed earnings under Article 66-9 of the Income Tax Act may apply. By contrast, according to Taiwan Ministry of Finance guidance, a profit-seeking enterprise whose head office is outside Taiwan is exempt from filing the relevant undistributed-earnings return. This does not mean that the branch’s Taiwan operations are untaxed or that all documentation obligations relating to head-office remittances disappear.

When comparing the two forms, businesses should look beyond a table of tax rates to the process by which profits are generated and used. A subsidiary calculates taxable income, expenses, losses, retained earnings, and distributable profits in its own books. The outcome may vary depending on whether funds will be needed for reinvestment in Taiwan, when dividends will be paid, and whether shareholder loans or royalties are involved. A branch must separate the revenue and expenses attributable to its Taiwan operations and establish a basis for allocating shared head-office expenses. The accounting presentation and tax attribution of internal dealings between the head office and branch also require review.

Transfer-pricing principles may apply to transactions between a subsidiary and its parent and to the allocation of expenses between a branch and its head office. Contracts, invoices, calculation methods, the work actually performed by personnel, use of assets, and movement of funds should be consistent with one another. An expense does not automatically become deductible by a Taiwan branch merely because the head office paid it, nor is a subsidiary’s expense automatically recognized merely because an amount appears in an intragroup agreement. Records supporting the nature of the transaction and the arm’s-length price should be retained.

On the Korean side, the parties should also consider foreign tax credits, dividends from a foreign subsidiary, branch income and losses, consolidated or separate accounting treatment, and foreign-exchange filings. The treatment of a Taiwan branch’s initial losses in relation to its head office may vary under Korean tax law and accounting standards. It is therefore not possible to conclude in advance that choosing a branch will reduce the parent company’s tax burden in Korea. The preferred approach is to compare Taiwan tax, the final Korean burden, the timing of cash recovery, and documentation costs in a single calculation.

3. Debts and Legal Liability

Because a branch is not a legal entity separate from the foreign company, the debts of a Taiwan branch are debts of the foreign company. As a rule, the foreign head office bears obligations arising from leases, sales, services, employment, or loan agreements lawfully entered into by the branch’s responsible person in the name of the foreign company. Even if the Taiwan operations incur losses or branch assets are insufficient to pay the debts, the liability of the foreign company—the legal person—is not limited to the funds appropriated to the branch.

Because a Taiwan subsidiary is a separate legal entity, contracts entered into and debts incurred by the subsidiary generally belong to it. Under the principle in Article 99 of the Company Act, shareholders of a limited company are liable up to the amount of their contributions, while shareholders of a company limited by shares are generally liable, under the rules applicable to that company form, up to the value of the shares for which they have subscribed. This distinction may be an important consideration for high-risk businesses, long-term contracts, and businesses dealing with many employees or consumers.

Forming a subsidiary does not, however, shield the parent company from every risk. If a bank or landlord requires a parent guarantee, the parent may be liable under the guarantee. The same applies if the parent directly assumes the subsidiary’s contract or signs as a joint party. A statutory exception may arise if company and shareholder property are not kept separate or if legal personality is abused in order to harm creditors. The boundary of liability is shaped not only by the form of registration but also by actual decision-making and financial operations.

The duties of directors, managers, and the responsible person in Taiwan must also be considered separately. The choice of company form does not resolve matters in which an actor incurs personal liability, such as intentional or negligent torts, violations of law, false filings, or safety violations. Employment relations, withholding and tax filings, personal data, consumer protection, environmental and product regulation, and industry-specific licensing duties are governed by the responsible parties and sanctions prescribed by each law. If group companies divide work among themselves, their documents and operations should consistently identify who actually performs each duty.

At the contracting stage, limitations of liability, damages, guarantees, security, governing law, and dispute-resolution clauses should be tailored to the risks of the business. Risks that can be transferred through insurance should also be distinguished from those to be prevented through internal controls. Clearly defining company-seal and electronic-signature authority, expenditure approval, customer verification, tax calculation and filing, regulatory reporting, and incident-reporting procedures makes it easier to preserve in actual operations the legal separation created by the chosen organizational form.

Ultimately, a comparison of liability cannot be reduced to the statement that “a subsidiary is safe and a branch is risky.” The branch structure makes clear that the foreign company bears liability directly, while a subsidiary begins with the principles of independent legal personality and limited shareholder liability. Guarantees, torts, abuse of legal personality, regulatory liability, and intragroup contracts must then be layered onto that starting point to determine the actual exposure and available controls.

4. Financing and Listing in Taiwan

A branch is not an independent issuer and cannot itself be listed in Taiwan. For a subsidiary to be listed, it must satisfy the applicable requirements of the Company Act and the stock exchange. Tax incentives are not determined solely by organizational form. An investment tax credit under Article 10-1 of the Statute for Industrial Innovation requires a separate review of the qualifying investment, filing deadline, credit method, restrictions on duplicate benefits, and tax credit limits.

A branch has no shares or equity interests of its own and therefore cannot issue them to third parties to make those parties shareholders of the branch. Funds needed for Taiwan operations may be obtained through funds appropriated by the head office, support from the head office, or lawful borrowing. The inability to issue equity should not be extended into the conclusion that all forms of financing are impossible. Borrowing capacity, security, head-office guarantees, bank review, and foreign-exchange documentation must be considered for each particular transaction.

Depending on the company form selected and the statutory procedures, a Taiwan subsidiary may use structures involving the issuance of shares or an increase in capital contributions. It may admit a local partner as a shareholder, structure the rights of subsequent investors or the terms of preferred shares, and consider equity compensation for officers and employees. If the long-term plan includes an exit through an equity transfer, a merger, demerger, or other business reorganization, or attracting a strategic investor, an independent subsidiary may be suitable for that plan. Each method remains subject to the Company Act, investment regulation, the articles of incorporation, and restrictions in shareholder agreements.

Listing in Taiwan is an area in which the structural difference between a branch and a subsidiary is particularly clear. Because a Taiwan branch of a foreign company is not an independent issuer and has no shares of its own, the branch itself cannot be listed on Taiwan’s securities market. Whether the foreign company that is the head office can be listed is a different question from whether the Taiwan branch itself can be listed.

Nor does a Taiwan subsidiary automatically become eligible for listing merely because it exists. A listing plan first requires an eligible form of issuer and compliance with the standards of the applicable Taiwan Stock Exchange market. All applicable requirements must be prepared for, including operating history, capital, profitability, share distribution, corporate governance, internal controls, audit, and disclosure. Industry rules, foreign-investment restrictions, group reorganization, and shareholder composition may also affect the listing plan.

Businesses should therefore map not only their immediate working-capital needs but also the sources of future funding and methods of recovery over time. The appropriate structure becomes clearer when they determine whether the head office will provide all funding, whether investors from Taiwan or a third country will participate, whether bank borrowing and security will be needed, whether employees will receive equity compensation, and whether a future equity sale or listing is planned. The structure suitable for short-term market entry may not be the same as the structure suitable for a long-term capital-markets plan.

5. Investment Tax Credits

Tax incentives are not uniformly determined merely by the organizational label of a Taiwan subsidiary or branch. The taxpayer’s eligibility, the actual investment, the amount, the condition and intended use of the assets, investment timing, filing deadline, approval process, credit method, and restrictions on combining the credit with other benefits must all be checked. A tax credit must also be distinguished from the calculation of taxable income; it should not be understood as allowing the entire expenditure to be deducted directly from tax payable.

Current Article 10-1 of the Statute for Industrial Innovation applies to certain investments made from January 1, 2025, through December 31, 2029. A company or limited partnership that invests at least NT$1 million and no more than NT$2 billion in the same taxable year may consider claiming the credit, subject to the statutory requirements and approval process. The investor must acquire the qualifying assets for its own use, and whether they are new and actually used must also be verified.

Qualifying fields include new smart machinery, 5G systems, cybersecurity products or services, artificial-intelligence products or services, and hardware, software, technology, or technical services related to energy conservation or carbon reduction. A project does not qualify automatically merely because it appears to fall under one of these labels. Contracts, tax documents, proof of payment, asset specifications, technical details, plans for use, and application materials must be individually checked against the statutory scope and procedures.

Under the options prescribed by law, a taxpayer may consider crediting up to 5% of the investment amount against profit-seeking enterprise income tax for the current taxable year, or crediting up to 3% of the investment amount in each of three years. The annual credit under Article 10-1 may not exceed 30% of the profit-seeking enterprise income tax for that year. If other investment tax credits are claimed in the same year, the aggregate credit ceiling and restrictions on duplicate benefits must also be separately checked. The “30%” figure does not mean that 30% of research and development expenses is automatically refunded.

Separate incentives for research and development activities may fall under Article 10 of the Statute for Industrial Innovation or other provisions. Confusing the research and development credit under Article 10 with the credit for specified equipment and technology investments under Article 10-1 may lead to errors concerning qualifying expenditures, filing times, and limits. Before investing, a business should identify the provision it intends to rely on, the filing authority and schedule, and whether the incentive may be combined with other subsidies or credits.

Whether a branch may apply or a subsidiary satisfies the requirements depends on the eligible applicant defined by the relevant laws and the actual investment relationship. Benefits are not assured merely because the investor is a subsidiary, nor can it be assumed that a branch is excluded from all tax incentives merely because it is a branch. Attempting to restructure after signing the investment contract and acquiring the assets may cause the business to miss a filing deadline or documentation requirement, so it is safer to review eligibility at the investment-planning stage.

6. The Taiwan–Korea Income Tax Agreement and Permanent Establishments (PEs)

The Taiwan–Korea Income Tax Agreement was signed on November 17, 2021, entered into force on December 27, 2023, and has applied since January 1, 2024. The Agreement coordinates double taxation of residents of the two territories, but it does not automatically exempt all Taiwan-source income. The type of income, beneficial ownership, residence, effective connection to a permanent establishment, and domestic procedures must each be considered.

Under the Agreement, the ceiling rates for dividends, interest, and royalties are each 10%. To apply these rates, treaty conditions must be met, including that the recipient is a resident of the other territory under the Agreement and is the beneficial owner of the income. The residence certificate and application, filing, or refund procedures required in Taiwan must also be completed. A conduit company in the transaction chain or income effectively connected to a Taiwan permanent establishment may require a separate analysis.

Business profits are generally exempt in the other territory if an enterprise of one territory has no permanent establishment (PE) there under the Agreement. Conversely, if a permanent establishment exists, profits attributable to that permanent establishment may be taxed in the other territory. When applying the business-profits article, the first step is therefore to determine whether the activities conducted in Taiwan constitute a permanent establishment, followed by calculating which revenue and expenses are attributable to it.

A permanent establishment may include a fixed place through which the business is carried on. If the business is conducted through a fixed facility such as a place of management, branch, or office, the period of use, the enterprise’s right of disposal over the place, and the functions performed must be considered. The registered Taiwan business location of a foreign company’s branch will ordinarily constitute a fixed-place permanent establishment in Taiwan, so the branch’s Taiwan business profits cannot be presumed to be exempt.

In addition to a fixed place, the Agreement recognizes several other types of permanent establishment. A construction site, construction, assembly, or installation project, or related supervisory activity may create a construction PE if it lasts more than six months. A service PE may arise if an enterprise provides services through employees or other personnel for more than 183 aggregate days in any twelve-month period. The activities of an agent who repeatedly exercises authority to conclude contracts on behalf of an enterprise may also constitute an agency PE.

These tests address different types of activity. The fact that services are provided for 183 days or fewer does not establish that there is no fixed place such as a place of management or office, just as a construction period of six months or less does not eliminate the possibility of an agency PE. The place, duration, personnel, authority to negotiate and conclude contracts, inventory or equipment, customers, and the form in which the business presents itself to counterparties must all be considered.

A subsidiary and a permanent establishment are also different concepts. Because a Taiwan subsidiary is a separate legal entity, the mere fact that it is the subsidiary of a foreign parent does not immediately make it the parent’s permanent establishment in Taiwan. However, specific facts require separate review—for example, if the subsidiary repeatedly exercises authority to conclude contracts on behalf of the parent or the parent conducts its own business at the subsidiary’s premises. Corporate registration and the nexus for taxation under the Agreement are each assessed under their own requirements.

Preparing to claim benefits under the Agreement requires records of actual performance, not just contracts and invoices. Records of the days personnel spend in Taiwan, use of premises, decision-making, contract negotiations and execution, allocation of expenses, service deliverables, and movement of funds help determine permanent-establishment status and profit attribution. Filing schedules in both territories should be coordinated so that domestic filing procedures or transfer-pricing documentation are not omitted when treaty relief is claimed.

7. Choosing a Structure

Neither a subsidiary nor a branch is superior for every entry into the Taiwan market. A subsidiary may suit a business that needs an independent Taiwan legal entity and local shareholder structure, while a branch may suit a business that wants the foreign company to conduct Taiwan operations directly while retaining head-office control. However, the determination that a form can be established must be distinguished from the determination that it will be efficient when operations, taxation, and exit are taken into account.

Before making a choice, it is advisable to document and compare the following:

• who the investors will be and how voting rights and authority over key matters will be allocated;
• the extent to which the foreign head office or parent company will bear contractual and legal liability;
• which entity will hold customer contracts, employment relationships, intellectual property, business premises, and licenses and permits;
• where revenue and expenses will be recognized and how retained earnings, dividends, or head-office remittances will be handled;
• how to prepare materials for investment approval, bank accounts, inward remittances, foreign exchange, and outbound remittances;
• how to manage accounting records, audits, transfer-pricing documentation, Korean filings, and foreign tax credits;
• whether capital increases, local partners, employee equity compensation, a listing, mergers or reorganizations, and equity transfers are planned; and
• who will handle termination of contracts, employment matters, tax filings, asset disposal, and exit procedures if the business is discontinued.

Even if expected revenue is low and there will be few employees and contracts during the initial stage of entering Taiwan, future plans should be considered at the same time. Scenarios may compare the possibility of withdrawing after a short market test, long-term investment and admission of local partners, expansion into regulated business, and whether the head office will provide guarantees. A table showing the required funding, after-tax cash, liability exposure, and documentation and filing costs in each scenario can reduce preconceptions based on labels.

The possibility of changing the structure during operations should also be considered. Moving a branch’s business to a new subsidiary or transferring a subsidiary’s assets to another group company may require the consent of contractual counterparties, employment arrangements, licenses and permits, asset transfers, tax, and foreign-exchange procedures. The initial form should not be selected on the assumption that it can later be changed simply by changing its name. If a conversion may be needed, it is better to address assignment clauses in key contracts and intellectual-property licenses from the outset.

Exit procedures also differ. If the branch of a foreign company ceases operations in Taiwan, it must apply to cancel its branch registration under Article 378 of the Company Act. Debts and tax, employment, contractual, and regulatory obligations arising before the application do not, however, disappear merely because an application is filed. Settlement with business counterparties, termination of employment, collection of receivables, disposal of assets, tax filings, and closure of bank accounts should be carried out in the proper sequence.

Under Article 379 of the Company Act, cancellation of a branch registration does not affect creditors’ rights or the foreign company’s obligations. Creditors may continue to exercise rights arising from operations before cancellation, and the foreign company remains liable for those obligations. The disappearance of the branch from the register therefore does not, by itself, end past liability. Contracts and guarantees that may give rise to disputes, possible tax-audit periods, and record-retention obligations should also be reviewed.

If all Taiwan branches of a foreign company are canceled, Article 380 of the Company Act requires liquidation of the rights and obligations arising from its Taiwan operations and branches. The foreign company remains liable for debts that cannot be paid after liquidation. The principle that the foreign head office and branch are the same legal person applies both on entry and on exit. The appointment of the person responsible for liquidation, creditor notices, filings, and treatment of remaining funds must also follow current procedures.

Because a Taiwan subsidiary is an independent legal entity, it follows the dissolution and liquidation procedures under the Company Act rather than the cancellation procedure for the branch of a foreign company. The procedures applicable to the subsidiary, including shareholder resolutions, appointment of a liquidator, settlement of claims and debts, tax filings, and distribution of remaining property, must be followed. Even if the parent decides to withdraw from Taiwan, it cannot disregard the subsidiary’s legal personality and creditor relationships and immediately recover the funds. The termination procedures and work required for the two structures should not be treated as the same.

The safest approach is for professionals in Taiwan and the jurisdiction of the head office to review the final choice based on the same set of facts. Providing the business plan, organization chart, investors, anticipated contracts, flow of funds, staffing, and exit scenarios allows the legal, tax, accounting, and foreign-exchange issues to be examined together. After establishment, the business should periodically confirm that its actual operations have not diverged from the selected structure.

Official Sources

• Laws & Regulations Database — Company Act
• Laws & Regulations Database — Article 10 of the Value-Added and Non-Value-Added Business Tax Act
• Laws & Regulations Database — Income Tax Act
• Ministry of Finance eTax Portal — Withholding on Profit Income
• Ministry of Finance Laws and Regulations Database — Taxation of Profits of a Taiwan Branch of a Foreign Company
• Ministry of Finance eTax Portal — Exemption from the Undistributed-Earnings Return
• Ministry of Finance — Entry into Force and Application of the Taiwan–Korea Income Tax Agreement
• Laws & Regulations Database — Article 10-1 of the Statute for Industrial Innovation
• Taiwan Stock Exchange — Domestic Company Listing Standards
• Invest Taiwan — Foreign-Company Branch Investment and Registration Procedures

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This article is educational material intended to explain the general differences between a Taiwan subsidiary and a branch of a foreign company; it is not legal or tax advice for any specific matter. The applicable laws and tax treatment may vary according to the locations of the investor and head office, the nature of the business, transactions and cash flows, eligibility under the Agreement, and current practice of the competent authorities. The latest official materials and the circumstances of the particular matter should therefore be checked before establishing or funding an entity, entering into a contract, declaring a dividend, or making a remittance.

Wei Tseng (曾雋崴), Taiwan Attorney