January 7, 2005
Taiwan's government agencies continue to introduce regulations aimed at making Taiwan an ever more attractive destination for foreign enterprises to invest and set up operations. In one of the most recent examples, the Council of Labor Affairs has passed revisions that lower annual revenue requirements for foreign enterprises that wish to hire foreign white-collar executives. These relaxed regulations must still go through the formality of receiving Executive Yuan approval, and are expected to go into effect in 2005.
Under existing regulations, a foreign enterprise that wants to hire foreign white-collar executives must have been established for at least one year and 1) post annual revenues of
NTD 10 million for the previous year or of an average of
NTD 10 million over the previous three years, 2) achieve a combined annual import-export value of
USD 1 million for the previous year or of an average of
USD 1 million over the previous three years, or 3) report annual commission of
USD 400,000 for the previous year or of an average of
USD 400,000 the previous three years.
However, the revised rules allow a foreign enterprise to hire foreign white-collar executives when, after having been established for at least one year, it 1) attains annual revenues of
NTD 5 million or at least five times its capitalization for the previous year or average annual revenues of
NTD 5 million or at least five times its capitalization for the previous three years, 2) reaches a combined annual import-export value of
USD 500,000 for the previous year or of an average of
USD 500,000 over the previous three years, or 3) earns annual commission of
USD 200,000 for the previous year or of an average of
USD 200,000 the previous three years.
While the new regulations still require a foreign enterprise to have been established for at least one year in order to qualify for the hiring of foreign executives, they also include provisions that allow a foreign enterprise that has not been established for one year to apply for an exemption from these revenue requirements.
(United Daily News)
E-mail this page.
Invest in Taiwan
