China-based Taiwanese enterprises' capital increase by retained earnings has seen a significant rise since the second half of last year because of the Unified Taxation System that went into effect on Jan. 1 in China, a specialist of the Ministry of Economic Affairs' (MOEA) Investment Commission (
China's New Enterprise Income Tax Law, passed by the Chinese government last March, increased the 15 percent preferential tax rate to 25 percent on both foreign and Taiwanese-invested enterprises when it went into effect this year.
"Because the new income tax law took away the foreign investor benefit of being waved from income tax on distributed earnings, the number of Taiwanese enterprises using undistributed earnings to increase their capital has seen a significant rise since the second half of last year," Su Chyi-yann (
Taiwanese enterprises' other option was to distribute their accumulated undistributed earnings to foreign investors before the end of last year to avoid a 10 percent income tax, Su added.
"The new labor law ... will have very little impact on the return of China-based Taiwanese enterprises," Liu Meng-chun (
"China-based Taiwanese enterprises that moved their manufacturing facilities to China due to the lower wages that it provided in the past are not very likely to return to the nation as the domestic wages are still relatively high," Liu said, adding that Southeastern Asian countries would be a better option.
"However, the operating environment and language barriers that Taiwanese enterprises might encounter in South Eastern Asian Countries, will have a larger impact on small and medium enterprises than large enterprises," Liu added.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
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