Accounting And Auditing
Taiwan Accounting and Auditing Services
With our professional accounting knowledge and experience of handling Taiwan Tax, we will strive to provide our clients with one-stop service in accounting, auditing and taxation.
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Taiwan Accounting Services
Maintaining proper accounting records is the responsibility of the Company Directors, who are often too engrossed in running their business to comply with this area, they rely on junior staff to prepare the financial reports. Accounting outsourcing is allowing companies to reduce their overheads and have more effective cost management. The availability of professionally maintained and timely delivered accounts is crucial for the Company Directors to make the right business decisions to achieve higher profits and attract investors. Most importantly, they do not have to worry about retaining and training employees for this matter.
Taiwan Accounting requirements
The fiscal year for most Taiwan companies is the calendar year (January 1st to December 31st). The currency for bookkeeping must be denominated in the local currency, the new Taiwan dollar. All accounting books, supporting documents and financial statements should be prepared in Chinese.
The company should adopt the accrual basis in performing the recognition, measurement and reporting for accounting purposes. All accounting records must be kept for at least 5 years and the accounting books and financial statements must be maintained at least 10 years after the completion of year-end closing.
- Bookkeeping (monthly basis)
- Accounting, including generation of management accounts
- Clearing of back-log accounts
- Preparation of management accounts
- Liaising with auditors and tax agents during financial year-end
Taiwan Auditing Service
There are 3 types of audits in Taiwan, financial audit, tax audit and capital audit.
The company’s financial statements need to be subject to a financial audit by a local CPA if the company meet any one of below:
- Capital is NTD$30 million or more
- Public company
- Annual sales are NTD$100 million or more
- The number of employees is 100 or more
- A loan from the local bank is NTD$30 million or more
The company’s corporate income tax return need to be subject to a tax audit by a local CPA if the company meet any one of below:
- Financial institutions
- Public companies
- Enjoy tax incentive and annual sales is NTD$50 millions or more
- Claim or utilize the loss carry forward
- Consolidated income tax filing under certain laws
- Annual sales is NTD$100 millions or more
The capital audit will be required when setting up a new Taiwan company or applying for capital increase/decrease for the Taiwan company.
Our independent affiliate, Premia TNC CPA (Taiwan), is a registered CPA firm located in Taipei. Premia TNC (Taiwan) aims to provide high-quality audit with a reasonable price to clients in order to fulfill their legal and tax filing requirements.
Frequently Asked Questions
DO I NEED TO HIRE MY ACCOUNTING STAFF IN TAIWAN?
No, you don’t have to hire an accounting staff in Taiwan.
Outsourcing your accounting to a firm helps to ensure that your records are kept properly, and that you are protected in the scenario of an audit.
That’s why we always recommend setting up your business for success by hiring a professional agency.
DO I NEED TO COMBINE MY ACCOUNTING AND TAX FILING SERVICES?
While you technically do not need to combine your accounting and tax filing services, it is the simplest and most effective way to run your business, which is why most agencies offer both services in the same package.
Doing so will allow you to improve the efficiency of your business by keeping everything organized under one roof.
This means that when you have a new transaction, the supporting documents will be prepared and can fulfill both the requirements of accounting and tax filings.