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Taiwan: Market Profile

Picture: Taiwan factsheet
Picture: Taiwan factsheet

1. Overview

Taiwan is an important market in regional and global trade and investment. It is an export-dependent economy of 23 million people with a skilled workforce. As a relatively open and liberal economy, Taiwan benefits from substantial FDI as well as the management and technical expertise that accompany it. Taiwan is also a key link in global supply chains, a central hub for shipments and trans-shipments in East Asia, and a major centre for advanced research and development (R&D).

Source: World Bank, Fitch Solutions

2. Major Economic/Political Events and Upcoming Elections

November 2015
Taiwan's President Ma Ying-jeou and China's President Xi Jinping held historic talks in Singapore, the first such meeting since 1949.

January 2016
Democratic Progressive Party candidate Tsai Ing-wen won presidential election, and was set to take office in May.

November 2018
Taiwanese voters are to go to the polls to choose their mayors and councillors in the ‘nine-in-one’ local elections.

Source: BBC Country Profile – Timeline

3. Major Economic Indicators

Graph: Taiwan real GDP and inflation
Graph: Taiwan real GDP and inflation
Graph: Taiwan GDP by sector (2017)
Graph: Taiwan GDP by sector (2017)
Graph: Taiwan unemployment rate
Graph: Taiwan unemployment rate
Graph: Taiwan current account balance
Graph: Taiwan current account balance

e = estimate, f = forecast
Source: International Monetary Fund, CIA World Factbook

4. External Trade

4.1 Merchandise Trade

Graph: Taiwan merchandise trade
Graph: Taiwan merchandise trade

Source: WTO
Date last reviewed: August 21, 2018

Graph: Taiwan major export commodities (2017)
Graph: Taiwan major export commodities (2017)
Graph: Taiwan major export markets (2017)
Graph: Taiwan major export markets (2017)
Graph: Taiwan major import commodities (2017)
Graph: Taiwan major import commodities (2017)
Graph: Taiwan major import markets (2017)
Graph: Taiwan major import markets (2017)

Source: Trade Map, Fitch Solutions
Date last reviewed: August 29, 2018

4.2 Trade in Services

Graph: Taiwan trade in services
Graph: Taiwan trade in services

Date last reviewed: August 28, 2018

5. Trade Policies

  • Taiwan joined the WTO on January 1, 2002. Taiwan became a member of the Asia Pacific Economic Cooperation (APEC) in November 1991, and joined the Central American Bank for Economic Integration in 1992. Taiwan is also a member of the Asian Development Bank (ADB), the Pacific Economic Cooperation Council (PECC), and the Pacific Basin Economic Council (PBEC). Taiwan is also an observer at the Organisation for Economic Co-operation and Development (OECD) under the name of ‘Chinese Taipei’, and a member of International Chamber of Commerce as ‘Chinese Taipei’.

  • Taiwan signed an Economic Cooperation Framework Agreement (ECFA) with the People's Republic of China on June 29, 2010. Taiwan also signed a free trade pact with Singapore and New Zealand. Taiwan is seeking to join the Comprehensive and Progressive Trans-Pacific Partnership no later than 2020, if economic requirements are met.

  • Taiwan applied for the membership of the Asian Infrastructure Investment Bank in 2015.

  • The ECFA, a preferential trade agreement between China and Taiwan, aims to reduce tariffs and commercial barriers between the two parties. The ECFA neither accords the same rights as a Free Trade Agreement (FTA), which would reduce manufacturing jobs and average salary, nor accelerates capital outflow and brain drain of management and technology expertise. The ECFA also allows the inflow of mainland Chinese professionals to work in Taiwan with less red-tape.

  • Taiwan is not a part of any regional customs union, but it is a member of the World Trade Organisation (WTO) under the name ‘Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)’.

  • Taiwan currently has active FTAs with seven nations: Panama, Republic of Guatemala, Republic of Nicaragua, Republic of El Salvador, Republic of Honduras, New Zealand and Singapore.

  • As a major exporter of industrial products and one of the world's top importers, Taiwan has not imposed a significant number of trade barriers, allowing foreign products to compete with local ones on the domestic market. However, certain barriers remain in services, retail, cosmetics and medical devices in the form of lengthy, costly and non-transparent regulatory approval processes.

  • Schools and colleges in Taiwan have been instructed to favour local products and domestic labour in construction projects. The measure impacts all foreign industries wishing to conduct business with the education sector in Taiwan.

  • There are also a number of anti-dumping duties on basic metal products from trading partners, such as China, South Korea and Brazil, and on certain footwear, textiles, chemicals and cement imports from China. Safeguard measures are also in place for certain meats, such as chicken. Nevertheless, Taiwan continues to make improvements to its tariff structure on raw materials and finished products.

  • The average tariff rate for imported goods was 1.9% in 2016, but remained higher for certain goods such as industrial products (4.2%) and agricultural goods (14.7%).

6. Trade Agreements

6.1 Multinational Trade Agreements

Active

  1. Taiwan-Panama Bilateral Trade Agreement: Taiwan signed a FTA with Panama in August 2003 and it entered into force in 2004. Exporters can benefit from the exemption of customs duties on 4,181 items of commodities exported to Panama, and Panama gives preferential treatment to marine transport companies from Taiwan in using its seaport facilities.

  2. Though the two nations severed official diplomatic ties in June 2017 after more than a century of diplomatic relations, the FTA is still active. Bilateral trade between Taiwan and Panama in the first two months of 2018 totalled US$25.6 million, with Taiwan exporting US$20.4 million in goods to Panama, while importing US$5.2 million worth of products from Panama.

  3. Taiwan-Guatemala Bilateral Trade Agreement: Taiwan signed a FTA with Republic of Guatemala in July 2005. Under the Guatemala-Taiwan FTA, Guatemala committed to extending free-tariff treatment to 447 export agricultural products from Taiwan. Taiwan grants tariff exemptions to 644 or 41% of listed Guatemalan export agricultural products and is seeking to gradually lower tariffs on the rest. Business persons from Taiwan are also allowed to invest in Guatemala and then extend their operations, or export their products, to the United States and other countries in Central America under the terms of the Central American FTA to which Guatemala is a member.

  4. Taiwan-Nicaragua Bilateral Trade Agreement: Taiwan signed a FTA with Nicaragua in June 2006. This agreement eliminates foreign trade barriers, and facilitates the cross-border movement of export products and services between Nicaragua and Taiwan.

  5. Taiwan-Honduras-El Salvador FTA: Taiwan signed a FTA with the Republic of El Salvador and Republic of Honduras in May 2007. The main exports from Taiwan to these states are agro-processed and industrial products. Through the Taiwan-Honduras-El Salvador FTA, 3,590 export products from Taiwan benefit from tariff-free entry into El Salvador. A total of 5,688 products from El Salvador benefit from the same treatment in the Taiwanese markets.

  6. Agreement between New Zealand and Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC): Taiwan signed a FTA with New Zealand in July 2013. ANZTEC is a comprehensive market liberalisation agreement. For trade in goods, Taiwan will liberalise 99.88% of its tariff lines (excluding rice), while New Zealand will liberalise 100%. The deal envisages removing all trade barriers between the two nations by 2025.

  7. Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership (ASTEP): Taiwan also signed agreements with Singapore in November 2013. Under this agreement, Taiwan’s tariffs will be lowered in three phases, starting with removing import tax on 83% of Singaporean exports to Taiwan and ending with a virtual tax-free regime, while Singapore will eliminate duties on all imports from Taiwan. It was agreed that duties on other products will be removed over a period ranging from five to 15 years.

  8. Cross-Strait ECFA: In addition, Taiwan inked the ECFA with China in June 2010. This agreement boosts market access and reduces tariffs and commercial barriers.

Under Negotiation

The Regional Comprehensive Economic Partnership (RCEP): Taiwan is also working on joining RCEP, which is a proposed FTA between the 10 member states of the Association of South East Asian Nations (ASEAN) (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam) and the six states with which ASEAN has existing FTAs (Australia, China, India, Japan, South Korea, and New Zealand). RCEP will cover trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement and other issues.

Source: WTO Regional Trade Agreements database

7. Investment Policy

7.1 Foreign Direct Investment

Graph: Taiwan FDI stock
Graph: Taiwan FDI stock
Graph: Taiwan FDI flow
Graph: Taiwan FDI flow

Source: UNCTAD
Date last reviewed: August 28, 2018

7.2 Foreign Direct Investment Policy

  1. Taiwan welcomes and actively courts foreign direct investment (FDI) and partnerships with foreign firms. President Tsai Ing-wen, who was elected in January 2016 and assumed office in May that year, launched an initiative to promote economic growth by increasing domestic investment and FDI. The government effort aims to leverage Taiwan’s strengths in high-technology, manufacturing, and research and development (R&D), with a focus on targeted sectors, including smart machinery, defence and aerospace, green energy, biotechnology and biopharmaceuticals, and the Internet of Things (IoT). Plans for expanded investment by the central authorities in physical and digital infrastructure across Taiwan complement this investment promotion strategy.

  2. Taiwan and the Chinese mainland entered into the ECFA on June 29, 2010. According to the Early Harvest List of ECFA, both parties eliminated import tariffs on a number of products as of January 1, 2013. The mainland has also opened up 11 sectors to Taiwanese service providers, and Taiwan has reciprocated by opening nine, covering both financial and non-financial services, to mainland service providers.

  3. Taiwan and the Chinese mainland signed the Cross-Straits Agreement on Trade in Services on June 21, 2013, under which the mainland pledged to further open up 80 categories of services to Taiwanese service providers – e-commerce, securities brokerage, banking, insurance, culture and creativity, transportation, and technical certification and analysis. In return, Taiwan committed to further opening up 64 service sectors, including securities brokerage, banking, insurance, tourism, medical services, and technical certification and analysis, to mainland service providers. The two parties are currently going through the ratification procedures related to the agreement.

  4. Taiwan is open to foreign investment and has relatively few restrictions for investors. Indeed, there are a number of highly favourable trade and investment opportunities, including science-based industrial parks, export processing zones and free-trade zones. Manufacturing firms located in export-processing zones and science-based industrial parks are required to export all of their output in order to obtain tariff-free treatment of production inputs. However, these firms may sell their products in the domestic market upon payment of relevant import duties.

  5. Taiwan's many science and industrial parks, export processing zones and free trade zones aim to expand trade and investment opportunities by granting tax incentives, tariff exemptions, low-interest loans and other favourable terms. According to the World Economic Forum's Global Competitiveness report, the country ranks among the best in the world in terms of its industrial cluster development.

  6. Taiwan currently has seven key free trade zones, based in Keelung, Kaohsiung, Taichung, Taipei, Taoyuan, Anping and Suao. Foreign investors located in these areas are accorded national treatment. The zones are designed to develop forward-looking, high-end industrial activities through the loosening of restrictions on the flow of people, goods and capital. The first stage of development encompasses intelligent logistics, international medical care, value-added agriculture and industrial cooperation. It is hoped that the simplification of the customs system in the zones will encourage the development of industrial testing, verification, maintenance and other services.

  7. According to the Ministry of Economic Affairs (MOEA), goods commissioned for testing by foreign companies will be able to be shipped into one of the zones and then, after testing is completed, shipped back to the commissioning companies without the need for further reporting, allowing greater convenience for testing firms. There are plans to introduce a single window system to boost the efficiency of Free Economic Pilot Zones (FEPZ) and promote investment in the zones by integrating existing resources. This will help firms with the required procedures and greatly shorten the administrative process for building permits, company registration, environment protection, utilities and land - thereby making it easier to do business in the zones.

  8. Under Taiwan’s Regulations Governing the Approval of Investment or Technical Co-operation in Mainland China, business investment and technical co-operation undertaken in the mainland by Taiwanese companies, is subject to the approval of Taiwan’s Investment Commission.

  9. Taiwan has been gradually relaxing its restrictions on mainland investment, including such hi-tech projects as the production of semiconductors and wafer fabrication, as well as any investment under USD$200,000. Since the beginning of 2010, it has also lifted technical restrictions on investing in the production of TFT-LCD panels on the mainland and allowed mergers and acquisitions or equity investment of TFT-LCD panel factories.

  10. For security and environmental protection reasons, Taiwan maintains a list of industries closed to foreign investment. These include public utilities, air and sea transportation, power distribution, natural gas, postal services, telecommunications and mass media. Investors in wireless and fixed-line telecommunications firms should be aware that they are subject to foreign ownership limits of 60%, which includes a direct foreign investment limit of 49%. There is also a 20% limit on FDI in cable television broadcast services, a 49.9% cap for satellite television services, piped distribution of natural gas and high-speed railways. These caps represent a significant deterrent to investors, reducing Taiwan's international competitiveness in these industries. On the contrary, industries open to foreign investment in Taiwan, include small trucks, pesticide manufacturing, real estate development, brokerage and leasing.

  11. The MOEA Investment Commission screens applications for investment, acquisition and mergers. Roughly 95% of projects that are not closed to investment obtain approval within three working days, while those with an investment value of less than TWD500 mn (US$16.5 mn) are generally granted within two working days. Approval of investments above TWD1 billion or in a restricted industry require three weeks, as these investments must be referred to the relevant supervisory ministries and require approval of the Investment Commission Chairman or Executive Secretary. Investments involving mergers and acquisitions are screened at the monthly meeting of an inter-ministerial commission. The National Security Bureau also takes part in every review meeting for foreign investment applications, regardless of the nature or size of the investment.

  12. Taiwan is experiencing stalled progress on the privatization of its state-owned enterprises, which presents structural challenges to its investment environment. Nevertheless, improvements are being made. Foreign businesses may invest in state-owned enterprises that are earmarked for privatisation and they are also allowed to participate in publicly financed research and development programmes.

Source: WTO – Trade Policy Review, the International Trade Administration (ITA)

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive ProgrammeMain Incentives Available
Taiwan currently has seven free trade zones, based in Keelung, Kaohsiung, Taichung, Taipei, Taoyuan, Anping and Suao- Key benefits: Foreign investors treated as nationals.

- Loosening of restrictions on the flow of people, goods, and capital through the simplification of customs system. Firms can have up to 40% of their labour as foreign workers. Customs clearance is exempted from inspection when shipped to or from the Zone.

- Encourages the development of industrial testing in logistics, medical care, agriculture and industry.

8. Taxation – 2018

  • Value Added Tax: 5%
  • Corporate Income Tax: 20%

Source: PwC Tax summaries 2018

8.1 Important Updates to Taxation Information

On January 18, 2018, the Legislative Yuan passed amendments to the Income Tax Act, increasing the corporate income rate from the previous 17% to 20% and reducing the profit retention tax on undistributed earnings from the previous 10% to 5% for income earned from taxable year 2018 onwards. For companies having taxable income of less than TWD500,000, the income tax rate will increase gradually by 1% a year from 2018 onwards until it reaches 20%. Further, the dividend withholding tax rate for foreign shareholders is increased from 20% to 21%. For dividends distributed to foreign shareholders, the profit retention tax on undistributed earnings can no longer be credited against dividend withholding tax, with the exception of 2018.

Recently, Taiwan’s tax treaty network has increased to include treaties with Canada, Japan, Poland and Czech Republic. Apart from Czech Republic, the treaties have all come into effect as of January 1, 2018. The treaty with Czech Republic will become effective after necessary domestic procedures are completed. Taiwan has also signed a treaty with China; however, this tax treaty has not yet come into effect.

8.2 Business Taxes

Type of TaxTax Rate and Base
Corporate Income Tax20%
Capital Gains Tax20%
Value Added Tax5%
Commodity Tax (applicable to items including rubber tyres, beverages, cement, plate glass, oil and gas, electrical appliances and vehicles)8-30%
Land Value Increment Tax20-40% (special rate of 10%)
Luxury Tax (applicable to sale of passenger cars, private jets and helicopters)10%

Source: PwC Tax summaries 2018
Date last reviewed: August 28, 2018

9. Foreign Worker Requirements

9.1 Foreign Worker Restrictions

A more open migrant policy will be necessary in order to somewhat offset the shrinking domestic labour force and tightening labour market. At present, a number of restrictions on migrant workers remain in place, and while many are being relaxed, reform is only underway on a gradual basis. One of the key restrictions on migrant workers is the limit on their permitted stay in Taiwan, which currently stands at 12 years. This prevents the full integration of migrant workers into the labour force and does not allow them to replenish the territory's declining population on a long-term basis. In addition, foreign workers are required to renew their permits every three years, adding substantial costs and difficulties for low-wage migrants who must make a round-trip back to their home country.

9.2 Local Worker Requirements

There are also a number of restrictions placed on businesses seeking to hire migrant labour. The total workforce of a company may only comprise 40% of foreign workers, and manufacturing firms must hire five local workers for each foreign worker employed. In order to employ more highly skilled or management-level personnel, both the worker and the business must satisfy conditions set by the government. The expatriate must hold an advanced-level qualification, such as a PhD or master's degree or a significant level of vocational experience in a relevant field. Businesses must meet one of a number of targets in order to employ such foreign workers, including sales volumes of over TWD10 million, import and export volume of over US$1 million, or paid-in capital of TWD5 million in a new company or foreign branch.

9.3 Work Permits

Employers who wish to import foreign workers are required to first apply for a work permit with the Council of Labour Affairs (applications must be submitted in Chinese). Reviewing the work permit application alone takes two weeks, and once approved the work permit is sent to the employer. Only then can the prospective employee apply for a visa. This can amount to a lengthy process, and together with the VISA processing fee of US$164, this represents a bureaucratic and financial burden on foreign businesses. Foreign workers planning on relocating to Taiwan for up to three years without re-application can apply for an Alien Resident Certificate (ARC), which permits multiple entry and re-entry. Spouses and dependents can apply for an accompanying ARC with appropriate proof of their relationship to the main applicant. These restrictive measures make it more difficult for business to fill positions in which there is a skills mismatch with the local workforce, or which require specific expertise or managerial experience.

Source: Government websites, Fitch Solutions

10. Risks

10.1 Sovereign Credit Ratings


Rating (Outlook)Rating Date
Moody'sAa3 (Stable)17/11/2016
Standard & Poor'sAA- (stable)18/12/2002
Fitch RatingsAA- (Stable)11/10/2017

Source: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators


World Ranking
201620172018
Ease of Doing Business Index
10/18911/19015/190
Ease of Paying Taxes Index
39/18940/19056/190
Logistics Performance Index
25/160N/A27/160
Corruption Perception Index
31/17629/180N/A
IMD World Competitiveness14/6114/6317/63

Source: World Bank, IMD, Transparency International

10.3 Fitch Solutions Risk Indices


World ranking
201620172018
Economic Risk Index Rank
6/202
Short-Term Economic Risk Score74.677.380.6
Long-Term Economic Risk Score73.475.177.8
Political Risk Index Rank43/202
Short-Term Political Risk Score77.979.676.9
Long-Term Political Risk Score73.276.375.1
Operational Risk Index Rank  14/201
Operational Risk Score72.774.574.4

Source: Fitch Solutions
Date last reviewed: August 28, 2018

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK

Taiwan's key strengths stem from the territory’s external position, which is underpinned by considerable trade openness and its competitive financial sector profile, with the former buttressed by the territory's accumulation of a sizeable foreign exchange reserve buffer. Structural shortcomings include a fairly high dependence on exports from a single sector (electronics), while central strengths stem from structurally low inflation and very robust external accounts. Should we see a re-emergence of a crisis in the Eurozone, a slower-than-expected US recovery or a downward spiral in China's economy, we can expect Taiwan to head into a sharp recession.

OPERATIONAL RISK

Taiwan's attractive operating environment presents few risks to incoming businesses. Among the limited concerns to investors, are the cooling cross-Strait relations amid DPP rule, which raises political uncertainties in the medium term. In addition, high labour costs and a heavily government-owned banking system reduce Taiwan's international competitiveness and drive up operational costs. Nevertheless, the territory performs well in a number of other areas, most notably its highly developed logistics network and open economy, with relatively low tax rates and minimal red tape. These factors largely outweigh the risks posed to business activity.

Source: Fitch Solutions
Date last reviewed: August 31, 2018

10.5 Fitch Solutions Political and Economic Risk Indices

Graph: Taiwan short term political risk index
Graph: Taiwan short term political risk index
Graph: Taiwan long term political risk index
Graph: Taiwan long term political risk index
Graph: Taiwan short term economic risk index
Graph: Taiwan short term economic risk index
Graph: Taiwan long term economic risk index
Graph: Taiwan long term economic risk index

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Economic and Political Risk Indices
Date last reviewed: August 21, 2018

10.6 Fitch Solutions Operational Risk Index


Operational RiskLabour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Taiwan Score74.466.474.377.979.2
East and Southeast Asia Average55.356.555.754.454.4
East and Southeast Asia Position (Out of 18)33
32
3
Asia Average48.950.647.747.150.1
Asia Position (Out of 35)33
32
3
Global Average49.749.850.0
49.349.9
Global Position (Out of 201)1415
16
1626

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Taiwan vs global and regional averages
Graph: Taiwan vs global and regional averages
Country
Operational Risk
Labour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Singapore83.077.8
89.9
74.7
89.7
Hong Kong81.371.2
88.5
75.9
89.5
Taiwan74.466.4
74.3
77.9
79.2
South Korea70.663.5
67.5
78.1
73.1
Malaysia67.861.6
73.5
75.4
60.5
Macau62.464.2
66.9
50.5
68.0
Brunei60.962.8
57.2
53.0
70.6
Thailand58.856.7
65.2
68.2
45.2
China56.653.9
52.2
65.8
54.4
Vietnam53.452.6
55.5
54.5
51.3
Indonesia52.851.5
53.9
57.6
48.4
Mongolia51.657.8
52.4
41.9
54.1
Philippines43.651.3
47.3
44.6
31.3
Cambodia42.546.7
46.0
37.9
39.5
Laos38.744.2
38.0
36.0
36.7
North Korea32.649.6
20.3
29.6
30.8
Myanmar32.045.5
28.2
29.5
24.9
Timor-Leste31.940.5
26.6
28.0
32.5
Regional Averages55.356.555.754.454.4
Emerging Markets Averages46.84847.545.8
46
Global Markets Averages49.749.850
49.3
49.9

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: August 15, 2018

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Taiwan

Graph: Major export commodities to Taiwan (2017)
Graph: Major export commodities to Taiwan (2017)
Graph: Major import commodities from Taiwan (2017)
Graph: Major import commodities from Taiwan (2017)
Graph: Merchandise exports to Taiwan
Graph: Merchandise exports to Taiwan
Graph: Merchandise imports from Taiwan
Graph: Merchandise imports from Taiwan

Official Exchange Rate HK$/US$, average
7.76 (2013)
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
Source: Hong Kong Census and Statistics Department, Fitch Solutions


2017
Growth rate (%)
Number of Taiwanese residents visiting Hong Kong2,010,755-0.033

Source: Hong Kong Tourism Board


2017
Growth rate (%)
Number of Asia Pacific residents visiting Hong Kong54,482,5383.5
Number of Asians residing in Hong Kong2,784,870N/A

Source: Hong Kong Tourism Board, Fitch Solutions, United Nations Population Division
Date last reviewed: August 21, 2018

11.2 Commercial Presence in Hong Kong


2017
Growth rate y-o-y (%)
Number of Taiwanese companies in Hong Kong381-1.55
- Regional headquarters19-24
- Regional offices109-5.2
- Local offices2537.1

Source: Hong Kong Census & Statistics Department

11.3 Treaties and Agreements between Hong Kong and Taiwan

Taiwan and the Chinese mainland entered into the ECFA on June 29, 2010, with the treaty officially coming into effect on September 12, 2010. The ECFA included an Early Harvest List for trade in goods across the Strait. The mainland promised to reduce/exempt import tariffs on 539 Taiwan-origin products (according to 2009 tariff codes), including petrochemicals, machinery, textiles, transportation vehicles and parts, and agricultural produce. Reciprocally, Taiwan undertook to reduce/exempt import tariffs on 267 mainland products (according to 2009 tariff codes), including petrochemicals, machinery, textiles, transportation vehicles and parts. The related import tariffs have been lowered since January 1, 2011 and were eliminated completely by January 1, 2013.

Taiwan and the Chinese mainland also signed the Cross-Straits Agreement on Avoidance of Double Taxation and Enhancement of Tax Co-operation in August 2015, which provides Taiwan and mainland enterprises with preferential tax reductions or exemption measures and a mechanism for dispute resolution in order to resolve the problem of double taxation for people and enterprises on both sides. The tax exemptions cover such areas as business profits, sea and air transportation and investment. The two sides are in the process of ratifying the relevant procedures of the agreement.

11.4 Commercial and Economic Section in Hong Kong

Taiwan Interest Group - In Hong Kong General Chamber of Commerce
Address: Admiralty Headquarters, 22/F, United Centre, 95 Queensway, Hong Kong
Email: wendylo@chamber.org.hk
Representative: Chairman, Mr Pang Chun Yu, SBS, JP
Tel: (852) 2823 1232

Source: Hong Kong General Chamber of Commerce

Taiwan Representative Office in Hong Kong

Address: 40/F, Tower One, Lippo Centre, 89 Queensway, Hong Kong
Email: service@teco.org.hk, info@tecos.org.hk, hkg@mofa.gov.tw
Hours of Business: Monday - Friday, 9:00 a.m. - 12:00 p.m. (Receiving time) 2:00 p.m. - 5:00 p.m. (Dispatching time)
Tel: (852) 2525 8642
Fax: (852) 2529 1995

Source: www.tecos.org.hk

11.5 Visa Requirements for Hong Kong Residents

Hong Kong and Macau passports are allowed a 30-day entry after applying for an Exit & Entry Permit either at the airport after landing or in advance online. Starting from July 1, 2017, generally, single-entry visas for Hong Kong residents and tourist visas for Mainland China nationals residing in Hong Kong must be applied for online. Submission to the office will no longer be accepted. Visitors are required to upload a photo and required documents when filling in the online application form. Provided that the documents required are complete, it usually takes five working days to process the application. Visitors must pay the fee online with a credit card and print the visa.

Source: www.boca.gov.tw
Date last reviewed: August 21, 2018

Content provided by Picture: Fitch Solutions – BMI Research
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