Inbound M&A and Corporate Restructuring – Taiwan Tax Advisory
❓ Frequently Asked Questions (FAQ)
Inbound M&A tax concerns — answered clearly.
💬 Q1: Are there any tax differences between acquiring shares and acquiring assets in Taiwan?
✅ A: Yes. A share deal typically preserves the target company’s existing tax attributes (e.g. loss carryforwards, depreciation basis), but the buyer also inherits potential historical liabilities. An asset deal, on the other hand, allows for step-up in asset basis and cleaner separation, but may trigger VAT or land value increment tax depending on the asset types. We help assess which structure best suits your objectives.
💬 Q2: Can a foreign company directly acquire a Taiwanese business?
✅ A: Yes, foreign investors can acquire shares in a Taiwanese company or establish a new entity post-acquisition. Investment approval may be required from the Investment Commission (MOEAIC), especially in regulated industries or when acquiring majority ownership.
💬 Q3: Will withholding tax apply when repatriating profits or dividends post-acquisition?
✅ A: Yes. Dividends paid to foreign shareholders are typically subject to 21% withholding tax, unless reduced by an applicable Double Tax Treaty (DTA). We assist with treaty benefit applications and optimize post-acquisition profit distribution.
💬 Q4: Is it possible to use an offshore holding company to acquire a Taiwanese entity?
✅ A: Absolutely — many investors use regional holding structures (e.g., in Singapore or Japan) to optimize tax efficiency and limit exposure. However, substance and beneficial ownership requirements must be considered to qualify for treaty benefits.
💬 Q5: What are the tax risks commonly uncovered during due diligence in Taiwan?
✅ A: Common red flags include:
Unreported related-party transactions or two types of account ledgers
Improper VAT filings or input tax claims
Historical underreporting of income, withholding tax or overstatement of expenses
We conduct comprehensive due diligence to help you avoid post-deal surprises.
💬 Q6: Can you work with our foreign legal or financial advisors during the deal?
✅ A: Absolutely. We often collaborate with international law firms, accounting teams, and investment banks to provide seamless local tax support, ensure timelines are met, and that Taiwan-side issues are properly addressed in the overall deal structure.
Tax-smart strategies for foreign investors entering Taiwan.
When acquiring or restructuring a business in Taiwan, tax planning is essential for capturing long-term value and avoiding costly compliance issues. Our firm specializes in helping foreign investors, multinational corporations, and cross-border advisors navigate the complex tax landscape surrounding inbound M&A deals.
We provide strategic tax support throughout the entire deal cycle, from pre-acquisition structuring to post-deal integration, ensuring your transaction is efficient, compliant, and future-ready.
Our Inbound M&A Tax Services Include:
📐 Pre-Deal Tax Structuring
Comparing share deal vs. asset deal scenarios under Taiwan tax law
Designing holding structures to optimize withholding tax and profit repatriation
Reviewing DTA (tax treaty) applicability and permanent establishment risks
🔍 Tax Due Diligence
Identifying hidden tax liabilities, historical exposures, and compliance gaps
Reviewing target company’s filing positions, loss carryforwards, and related-party transactions
Evaluating potential restructuring risks (e.g., disguised distribution or deemed disposal)
📑 Transaction & Post-Merger Support
Tax review of purchase agreements and shareholder arrangements
Assistance with regulatory filings and tax registration updates
Post-closing compliance, transition period tax advisory and restructuring advisory
Why Choose Us for Taiwan Inbound M&A?
✔️ Deep experience advising foreign clients investing in Taiwan
✔️ Local tax expertise with cross-border transaction insight
✔️ Bilingual support and seamless collaboration with your legal/financial advisors
📩 Considering an acquisition or business restructuring in Taiwan?
Let us help you navigate the tax landscape and safeguard your investment.
Interested in maximizing the value of your mergers and restructuring plans? Let’s work together to create success stories!
