Payroll Outsourcing in Taiwan | INS Global
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Payroll Outsourcing in Taiwan

Pay your Employees Across the Globe

Expanding into a new market and hiring foreign talent can seem daunting.

INS Global provides payroll outsourcing services to over 600 companies in over 80 countries.

We ensure that our clients’ global employees are paid through methods that streamline complex tax and insurance regulations in local jurisdictions.

You can focus on achieving your business goals while we manage potentially frustrating HR issues and make sure that your employees are paid punctually, accurately, and safely.

Payroll Outsourcing in Taiwan - Summary

Five Benefits of Using Payroll Outsourcing in Taiwan

Improved Legal Compliance

INS Global’s experienced team of local experts with over 15 years of experience in the industry will ensure that you’re fully compliant with every aspect of payroll regulations in Taiwan

Reduced Cost And Time

Save time and money by working with only a single partner who will care for all of your payroll outsourcing needs

On-Time Delivery

Your employees will be guaranteed punctual monthly payments according to the requirements you establish

Focus on Company Growth

By providing recruitment, headhunting, and payroll outsourcing in Taiwan, a PEO can take care of the HR processes required for your entry into this market while you exclusively concentrate on growth

One Platform For Everything

A PEO covers all aspects of HR services and streamlines them into one platform

Step by Step Guide to Payroll Outsourcing in Taiwan

For companies establishing themselves in Taiwan, the complex task of organizing payroll in a foreign country and ensuring that your employees are paid timely and accurately is a costly and arduous process.

  1. First, you need to set up a local legal entity to hire employees and process their contracts.
  2. Then, you will have to open local bank accounts and organize for your employees to be paid using Taiwanese currency.
  3. Next, you will need to ensure that your employee’s contracts comply with the local laws and regulations relating to important matters like benefits, working hours, tax, and social security payments.
  4. Finally, this payroll will need to be closely and consistently managed to ensure that you continue to be on top of any changing laws or regulations.

INS Global can work with you to simplify this procedure into one basic agreement with our local PEO. This local entity can act as your EOR in Taiwan and perform all necessary payroll functions for your business.

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

Payroll Taxes in Taiwan

For a foreign company that wants to establish itself in Taiwan, the primary concerns regarding Taiwanese regulations are: individual income tax for employees, social security costs, VAT withholding tax, business tax, and permanent establishment concerns. There are four main options for handling payroll in Taiwan:

  1. The first of these options is remote payroll for whenever a foreign company pays a resident employee in Taiwan.
  2. The second option is local payroll administration. With this option, many companies register their business in China have another company administer its payroll.
  3. The third option is internal payroll. Larger companies with a longer-term commitment to the Taiwanese market will typically choose this option to handle all of their payroll, both for domestic and foreign employees. This approach may only be suitable for companies that can afford the increased expenses associated with this model.
  4. The final option is to outsource payroll and employment fully. Companies that use this option will use a third party to employ and pay their staff. Companies generally use this method to enter the market quickly and at a reduced cost.

Corporate Income Tax Rate

The sales tax in Taiwan is known as the Business Tax. The basic rate is 5%.

Withholding Tax: For dividends, this rate is set at 20%.

For interest, it is set at 15%.

For royalties, it is set at 20%.

For more information about payroll outsourcing, as well as many of the other HR services provided by us, contact us here:

How INS Global Can Help You Enter Taiwan

Organizing payroll for your global corporate structure can sometimes be a complex process fraught with random complications and unexpected delays.

INS Global can serve as your all-in-one point of contact to meet your needs for payroll outsourcing in Taiwan, PEO solutions, invoicing, and tax administration services.

We take care of the complications and allow you to focus on your expansion into Taiwan.

CONTACT US TODAY

Discover More Solutions in Taiwan

FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.