🇹🇼 Annual Compliance — Taiwan

Skipping the Foreign Investment Approval (FIA) step

Fix: FIA from the MOEA Investment Commission is mandatory for all foreign-invested companies. Operating without FIA approval can result in the company being treated as a domestic entity, losing foreign investor protections and profit repatriation rights. Always complete FIA before incorporation.

Setting capital too low to qualify for work permits

Fix: While there is no statutory minimum capital, a capital base below NTD 500,000 may make it difficult to obtain work permits for foreign directors and employees. Set capital at NTD 500,000+ ($16,000+) to ensure work permit eligibility.

Not leveraging R&D tax credits under the Statute for Industrial Innovation

Fix: Taiwan offers a 15% R&D tax credit on qualifying expenditure, capped at 30% of tax liability. Many foreign companies are unaware of this incentive or fail to maintain the documentation required to claim it. Engage a local CPA to structure R&D claims from the first year of operations.