Articles from January 2008
2007 Enforcement Statistics Released
The Taiwan Intellectual Property Office released its 2007 statistics this month for IPR Police intellectual property enforcement:
| Overall Infringement Cases Identified: | 2,280 |
| Trademark Infringement: | 1,193 |
| Copyright Infringement: | 1,087 |
| Online Infringement: | 1,791 |
| Brick and Mortar: | 172 |
| Night Markets: | 155 |
| Marketing: | 8 |
| Manufacturing: | 6 |
| Others: | 148 |
The figures reflect the overall trend that we have seen in the market for the last few years – the sale of infringing products has moved into the online market place while the manufacturing of such products has moved offshore to "friendlier" jurisdictions.
For more information about this topic, please contact Marcus Clinch at 886-2311-2345 ext. 511.
Categorised in Update. Tagged: IP , Marcus Clinch
Taiwan Intellectual Property Office to Release Draft Amendments to Copyright Act
The Taiwan Intellectual Property Office is expected to release draft amendments to the Copyright Act shortly. The draft bill, titled “Internet Service Provider Liability Limitation Bill”, aims to clarify the liability of Internet service providers for intellectual property infringement occurring on their platforms. Public hearings are being planned for the end of February or early March.
For more information about this topic, please contact Marcus Clinch at 886-2311-2345 ext. 511.
Categorised in Update. Tagged: copyright , Marcus Clinch
Partner, Associate Contribute to World Bank's Doing Business 2008
Partner Chen Hui-ling and Associate Shan Lee have contributed to the "Starting a Business" chapter in the World Bank's "Doing Business 2008" project. The Doing Business project provides objective measures of business regulations and their enforcement in 178 countries. Doing Business 2008 is available as a free download or purchased in book format, with topics ranging from starting a business, to obtaining licenses and paying taxes. According to the World Bank, Taiwan ranked seventh in ease of doing business and 17th in starting a business among 24 countries in the East Asia and Pacific region. The island ranked 50th worldwide in total ease of doing business, placing it ahead of China (83), Italy (53) and Brazil (122), among other countries.
Categorised in WP In the News. Tagged: Chen Hui-ling , corporate , finance , investment , Shan Lee
New Tax Preferences for Foreign Professionals in Taiwan
On January 8th, Taiwan's Council for Economic Planning and Development announced new tax preferences for foreign professionals in Taiwan. Employers of eligible foreign professionals will be able to declare non-salary payments and reimbursements to foreign professionals as operating expenses. Examples of expenses include travel and school tuition for children. From the perspective of the employee, the preferential incentive is that these payments and reimbursements will no longer be treated as income for tax purposes.
As a courtesy to the international community in Taiwan, the Winkler Partners Translation Department has translated the official announcement as published in the Executive Yuan Gazette.
Ministry of Finance Order
Ref. Tai-Cai-Shuei-Zih No. 09600511820
8 January 2008
The Scope of Application of Tax Preferences for Foreign Professionals is adopted and is effective from 1 January 2008.
- The Scope of Application of Tax Preferences for Foreign Professionals is adopted to accelerate and promote the internationalization of Taiwan's economy and to encourage foreign professionals to come to Taiwan to work.
- The term "foreign professionals" in this Scope of Application includes those already working in Taiwan. However, dual nationals concurrently holding ROC nationality and another nationality shall be excluded from the scope of application because of concerns about determination of identity.
- The term "tax preferences" in this Scope of Application means expenses paid by an agency, organization, school, or enterprise in the recruitment of foreign professionals by stipulation of the employment contract. Round-trip travel expenses for a foreign professional and his or her dependents, travel expenses for contractually stipulated home leave per certain period of work, moving expenses, utility fees, cleaning fees, telephone fees, rental costs, cost of repair and maintenance of rented premises, and education expenses for children may be recognized as expenses and will not be considered taxable income of the foreign professional.
- The persons covered by the Scope of Application will be determined under Article 46, paragraph 1, subparagraphs 1 and 2 of the Employment Services Act and relevant regulations, and will be limited to foreign professionals engaged in the following lines of work:
- civil engineering or architecture/construction technology;
- transportation;
- tax and financial services;
- real estate brokerage;
- immigration services;
- lawyers;
- engineers/technicians;
- medicine and health care;
- environmental protection;
- cultural, sports, and leisure services;
- academic research;
- veterinarians;
- manufacturing;
- distribution services;
- executives of enterprises invested in or set up by overseas Chinese or foreign nationals with the authorization of the Taiwan government
- management, design, planning, or consulting relating to professional, scientific, or technical services;
- cooks in the food and beverage industry;
- other jobs designated by the Council of Labor Affairs, Executive Yuan in consultation with the central-government competent authority for the industry concerned.
- civil engineering or architecture/construction technology;
- A foreign professional enjoying tax preferences as determined under Article 46, paragraph 1, subparagraphs 1 and 2 of the Employment Services Act must reside in Taiwan for at least 183 days in aggregate in the tax year and be paid a monthly taxable salary of NT$100,000 or more. However, if an agency, organization, school, or enterprise has special needs in the recruitment of foreign professionals and these special needs have been reviewed and recognized by the Ministry of Finance on a special-case basis, it may be exempted from the requirement of paying monthly taxable salary of NT$100,000 or more.
- Reviews to determine eligibility of foreign professionals for tax preferences shall be done by the local offices of the National Tax Administration, Ministry of Finance. When an agency, organization, school, or enterprise has special needs in the recruitment of foreign professionals, the Ministry of Finance shall first submit the matter to the competent authority for the industry concerned and ask it to provide a review opinion. The Ministry of Finance also may convene an ad-hoc review conference to make the determination.
Ministry of Finance Order
Ref. Tai-Cai-Shuei-Zih No. 09600511821
8 January 2008
Beginning from 1 January 2008, an agency, organization, school, or enterprise (hereinafter, "employer") hiring a foreign professional who meets the requirements of the Scope of Application of Tax Preferences for Foreign Professionals shall do as follows:
- The employer shall apply for permission from the Council of Labor Affairs, Executive Yuan under Articles 46 and 48 of the Employment Services Act, and obtain a foreign national work permit issued by the Council of Labor Affairs.
- The employer shall keep accounts of, and obtain and keep vouchers for, payments that it makes under stipulations of the employment contract for round-trip travel expenses for the foreign professional and his or her dependents, travel expenses for contractually stipulated home leave per certain period of work, moving expenses, utility fees, cleaning fees, telephone fees, rental costs, cost of repair and maintenance of rented premises, and education expenses for children.
- If the employer is one that is required to file a business income tax return, the various expenses specified above may be recognized as operating expenses, and are exempted from being considered taxable income of the foreign national. When preparing the business income tax return for the fiscal year, the employer shall fill out the "Itemized List of Expense Payments Meeting the Scope of Application of Tax Preferences for Foreign Professionals" on the tax return form and file it with the return, and shall present relevant certifying documents for review and verification during auditing by the assessment authority.
- If the employer is not required by regulations to file a business income tax return, the various expenses specified above that the employer has paid for a given tax year are exempted from being considered taxable income of the foreign national. The employer shall, by the end of January of the following year, fill out an "Itemized List of Expense Payments Meeting the Scope of Application of Tax Preferences of Foreign Professionals" and file it with the competent assessment authority for recordation.
- The "Itemized List of Expense Payments Meeting the Scope of Application of Tax Preferences of Foreign Professionals" is attached in three-part form.
For more information about this translation please contact Paul Cox at +886-2311-2345 ext. 545. To learn more about eligibility for the tax preferences, please contact Marcus Clinch at 886-2311-2345 ext. 511.
