HSBC Treasury Management Profiles 2018 -

Current section, Introduction

Introduction

As one of Asia’s Four Tiger economies (alongside South Korea, Singapore and Hong Kong), Taiwan has over the past four decades transformed itself from a largely agrarian-based economy to one dominated by industry and services and powered by exports. Exports, of technology goods in particular, account for approximately 60 per cent of GDP. As a territory reliant on trade, recent economic growth has been impacted on by the global economic slowdown – exports fell 10.6 per cent in 2015 and 1.7 per cent in 2016 year-on-year. A revival in the global economy in 2017, however, has seen exports rebound; in September 2017, Taiwan’s exports rose 28.1 per cent on a year earlier. This strong demand for exports saw the growth forecast for 2017 raised to 2.15 per cent, up from 1.92 per cent in February. Growth of 2.27 per cent is forecast for 2018. Surging exports also drove economic growth of 3.1 per cent in Q3. In order to lessen the territory’s economic dependence on exports, the government is introducing initiatives to spur private investment. The World Bank currently ranks Taiwan 11th out of 190 in its Doing Business 2017 ranking; the territory is also a preferred destination for foreign direct investment. In September 2017, Premier William Lai announced plans to eliminate investment obstacles and to push forward its ‘Forward-looking Infrastructure Development Plan’ which includes investment in a wide range of industries such as rail transportation, urban and rural development, digital development and green energy.

To read the detailed report, please click on the Download PDF option

Legal and regulatory

  • Foreign exchange and domestic currency (TWD) accounts can be held by residents both domestically and abroad. TWD cheque, demand and time-deposit accounts are subject to a refundable 10 per cent withholding tax on the interest and interest-related income
  • Non-resident bank accounts are permitted in both foreign and domestic currency. TWD current, demand and time-deposit accounts are subject to a non-refundable 20 per cent withholding tax on the interest and interest-related income
  • All transactions between residents and non-residents must be reported to the central bank on a monthly basis. A declaration statement must be made to the CBC for all foreign exchange transactions over TWD500,000. Corporate transactions greater than USD1 million must be reported by banks immediately

To read the detailed report, please click on the Download PDF option

Taxation

  • A company headquartered in Taiwan is taxed on its worldwide income
  • A company headquartered outside of Taiwan (such as a branch of a foreign company) is taxed on Taiwanese-sourced income only
  • The flat rate of corporation tax is 17 per cent

To read the detailed report, please click on the Download PDF option

Payment instruments and systems

  • Cash is an important payment medium in Taiwan, particularly for low-value commercial and retail transactions. Although its use is in decline due to a preference for electronic payments for high-value corporate and low-value retail payments, the cheque remains a common method of payment in Taiwan. Payment card use is widespread, while electronic wallet schemes are popular. In June 2017, the government launched pay.taipei, a mobile payment platform to enable the payment of utility bills and parking fees
  • Taiwan operates a number of national payment systems: CIFS, an RTGS system; FISC, which operates several subsystems, including the IRS, the Credit Card and Shared ATM System, and the Internet and Mobile Banking systems; the ACH, for electronic payments; and the USD Settlement System

To read the detailed report, please click on the Download PDF option

Cash management

  • Domestic notional pooling and cash concentration is permitted. Prior approval is required from the Ministry of Finance before banks can offer pooling services. Cross-border structures are not permitted
  • A range of collection services are available, including cheque collection services provided by courier companies

To read the detailed report, please click on the Download PDF option

Electronic banking

  • Electronic banking is commonplace in Taiwan. There is no bank-independent electronic banking standard
  • Internet and mobile banking services are provided by all of the territory’s banks for both corporate and retail purposes
  • The Mobile Banking Payment System, which links telecoms companies with financial institutions, enables users to initiate fund transfers via mobile phone

To read the detailed report, please click on the Download PDF option

 

 


To read the full report on Taiwan and to discover more on these and other topics, including banking and trade, please click on the Download PDF option.

Sources:

  • Ministry of Finance
  • World Bank
  • Trading Economics
  • Directorate General of Budget, Accounting and Statistics

The materials contained on this page were assembled in June 2017 (unless otherwise dated).

 

Disclaimer

This document has been produced by HSBC Bank plc and members of the HSBC Group (“HSBC”), together with their third-party contributor, WWCP Limited. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The information contained in this document has not been independently verified by HSBC.

This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services provided by HSBC or any form of cooperation between HSBC and the respective third parties.

Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect, consequential or other) arising out of reliance upon this document and the information contained within it.

HSBC and the third-party contributor do not undertake, and are under no obligation, to provide any additional information, to update this document, to correct any inaccuracies or to remedy any errors or omissions.

No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information contained in this document shall be subject to the terms of separate legally binding documentation and nothing in this document constitutes an offer to provide any products or services.