Taiwan possesses a well-established legal system and mature business ecosystem, serving as a global center for high technology and manufacturing. Corporate income tax is 20%, while employer contributions for labor and health insurance plus labor retirement account for approximately 17-18% of salary. Labor retirement contribution of 6% is deposited into individual retirement accounts. Annual leave ranges from 3 days (1 year of service) to maximum 30 days (10+ years of service). Limited company registration takes approximately 2-4 weeks with no foreign ownership restrictions. Galaxy APAC provides complete Taiwan company setup, EOR and payroll outsourcing services.
| Metric | Data |
|---|---|
| Corporate Income Tax | 20% |
| Company Registration Time | Approximately 2-4 weeks for limited company |
| Minimum Registered Capital | No mandatory minimum (typically NT$1,000 for symbolic registration) |
| Foreign Ownership Cap | No restrictions for most industries |
| Labor and Health Insurance (Employer) | Approximately 17-18% of salary |
| Labor Retirement Contribution | 6% to individual retirement account (worker benefit) |
| Paid Annual Leave | Minimum 3 days (1 year service); maximum 30 days (10+ years) |
| Work Permit for Foreign Employees | Requires Ministry of Labor approval; processing 2-4 weeks |
Taiwan's employment law is relatively balanced between employer and employee interests. The 6% labor retirement contribution benefits employees through individual accounts rather than employer pension funds, providing workforce flexibility. Taiwan's stable political and economic environment, combined with strong IP protection and tech ecosystem, makes it attractive for tech and manufacturing investments. Early consultation with local tax and labor specialists is recommended.
A: Limited company registration typically takes 2-4 weeks from application to receipt of business license. Timeline includes Ministry of Economic Affairs processing. With proper documentation and local professional assistance, most companies complete setup smoothly. Galaxy APAC handles the entire process.
A: The 6% labor retirement contribution is deposited monthly into individual employee retirement accounts, providing lifetime benefits. Unlike traditional pension funds, employees own these accounts and can access them upon retirement or departure. This system is employer-friendly as it eliminates long-term pension liabilities.
A: Employees receive 3 days paid leave from start, incrementing at set intervals until reaching 30 days after 10 years. Accurate tracking via HR systems is essential for compliance. Unused leave can carry over with certain limitations, and termination may require payout for accrued leave.
A: Foreign employees require Ministry of Labor work permits, typically requiring valid passport, contract offer, and employer sponsorship. Processing takes 2-4 weeks. Requirements vary by profession; some fields have hiring ratio quotas favoring local workers. Galaxy APAC can assist with application preparation.
A: Taiwan market offers flexibility through base salary plus bonus structure, allowances, and benefits. The 6% retirement contribution plus health insurance costs should be factored into budget. Competitive packages typically include health insurance, year-end bonuses, and performance incentives to attract talent.
A: Taiwan generally has no foreign ownership restrictions for most industries, making it attractive for foreign investment. Some sensitive sectors (media, telecommunications, defense) may have limitations. Consult with legal advisors on specific industry requirements before investment.
Galaxy APAC's professional team is ready to provide comprehensive company setup, EOR and payroll solutions