Taiwan is home to more than 23 million people and has strong technology and service industries. For companies looking to expand in Taiwan, there are many types of company formations that can be established including limited liability, branch or representative offices. Companies must register with the Taipei National Tax Administration and the Ministry of Finance to obtain a Company Internal Revenue Department Number. Companies have to also register with the local Social Insurance, National Health Insurance, and Labor Insurance to manage employee benefits.
Managing payroll includes several monthly reporting requirements including labor and health insurance premiums, pensions, and taxes. For companies with no local bank accounts, Blue Marble offers money movement services so you can fund payroll in USD and we settle in the local currency (NT). If you have a local bank account, you can fund payroll and pay staff using online banking. If you do not have a local bank account, you can send funds to local in-country provider and they will pay staff salary and statutory payments required.
Payroll and Labor Considerations in Taiwan:
- Minimum wage is NT 23,100 per month ($757 USD)
- Employment contracts do not have to be in writing
- Collective Bargaining Agreements are usually created at each company, although industry-level agreements also exist
- Income and social security taxes are withheld from employee pay. VAT and other taxes can also be withheld as well
- Employers must contribute to social security
- Employers must ensure new employees are registered with the National Health Insurance Bureau and the Labor Insurance Bureau
- The Middle-Aged and Senior-Aged Employment Promotion Act will facilitate more employment of the senior workforce of Taiwan (learn more: https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=N0090001)
- In accordance with the labor laws, employees are entitled to two types of sick leave. They can have 30 days of ordinary sick leave each year, provided they are not hospitalized, or they can also take one year of sick leave within two-year period, when they are hospitalized. The combined number of sick days taken within two years cannot exceed one year
- Foreign workers must apply for a resident visa before entering Taiwan, and must also obtain an alien resident card once in Taiwan. Employers must apply on behalf of the foreign worker to obtain a work permit
With our cloud-based payroll technology and aggregated reporting, Blue Marble makes it easy to manage employee payroll and compliance in Taiwan. Get aggregated, customized reporting to view payroll in real-time views across all countries and currencies. Our hybrid service model provides a dedicated US-based service team and direct access to in-country experts when questions come up. Simplify your payroll and operations in Taiwan with our global payroll technology and integrated solutions. To learn more or get started, click here