Taiwan Accounting

Our Taiwan Accounting Services

• Accounting and Tax Setup: We assist new businesses in establishing their accounting systems and registering for all necessary taxes in Taiwan, ensuring a smooth and compliant start to financial operations.
• Bookkeeping and Record Keeping: We provide thorough and accurate bookkeeping services, maintaining all financial records in compliance with applicable accounting standards. This includes managing daily transactions, ledgers, and financial statements.
• Monthly/Quarterly Financial Reporting: We prepare and deliver timely financial reports, including balance sheets, income statements, and cash flow statements, offering a clear overview of your company’s financial performance.
• Tax Compliance and Filings: Our experts handle all aspects of tax compliance, including the preparation and submission of corporate income tax returns, Value-Added Tax (VAT) filings, and other relevant tax declarations to the National Taxation Bureau.
• Payroll Processing: We manage comprehensive payroll services, ensuring accurate calculation of salaries, social security contributions, and individual income tax withholding, alongside timely submission of payroll-related reports.
• Statutory Audit Support: We assist in preparing your company for annual statutory audits, liaising with auditors, and providing all necessary documentation to ensure a smooth and efficient audit process.
• Financial Advisory and Consulting: Beyond routine accounting, we offer strategic financial advice, helping you understand your financial data, optimize cash flow, and make informed business decisions for growth and sustainability.

Benefits of MSA Taiwan Accounting Services

• Dedicated Account Manager for Asia Business: You will have a specific point of contact to address your queries and provide tailored assistance, not only for Taiwan but for all your business questions across Asia.
• Up-to-Date Regulatory Knowledge: We continuously monitor changes in Taiwan’s financial regulations and tax laws, ensuring your business remains compliant with the latest requirements.
• Time and Cost Efficiency: Outsourcing your accounting functions to us allows you to focus on your core business activities, saving on the costs associated with maintaining an in-house accounting department.
• Taiwan Experts: Benefit from our extensive experience and strong relationships with local authorities, ensuring smoother and more efficient processes.

Taiwan’s accounting framework has evolved significantly over the past two decades, moving from a largely domestic GAAP system to one closely aligned with International Financial Reporting Standards (IFRS). Today, Taiwan operates a dual-track system depending on the type and size of the entity.

Key Accounting Requirements in Taiwan

1. Taiwan-IFRS (T-IFRS) for Public and Listed Companies

Public companies, financial institutions, and companies listed on the Taiwan Stock Exchange are required to prepare financial statements in accordance with Taiwan-IFRS (T-IFRS). T-IFRS is based on IFRS as issued by the IASB but endorsed locally by Taiwan’s regulator, the Financial Supervisory Commission (FSC). While largely converged with IFRS, there may be:

• Differences in effective dates

• Elimination of certain accounting policy options

• Transitional provisions tailored to Taiwan

• Local interpretative guidance

The endorsement process is coordinated by the Accounting Research and Development Foundation (ARDF), which translates, reviews, and recommends IFRS standards for FSC approval.

In practice, T-IFRS is very close to full IFRS, meaning financial statements are generally comparable with those prepared in other IFRS jurisdictions such as the EU, Australia, or Singapore.

2. Enterprise Accounting Standards (EAS) for Private Companies

For non-public companies, Taiwan applies the Enterprise Accounting Standards (EAS) framework. This system is:

• Simpler than full IFRS

• Designed for SMEs and privately held entities

• Less complex in areas such as financial instruments and fair value accounting

• More cost-efficient for smaller businesses

EAS reduces compliance burdens while maintaining a structured financial reporting framework. However, companies planning to list or attract institutional investors often voluntarily adopt T-IFRS for credibility and comparability.

3. Regulatory Oversight and Standard Setting

Accounting regulation in Taiwan involves multiple bodies:

• FSC – Final authority for endorsement and supervision of listed companies

• ARDF – Technical review, translation, and advisory role

• Ministry of Economic Affairs (MOEA) – Oversees company registration and corporate governance compliance

The FSC ensures that listed entities comply with T-IFRS, disclosure rules, and audit requirements, while the ARDF monitors developments from the IASB and recommends updates to maintain convergence.

4. Financial Statement Requirements

Under both T-IFRS and EAS, companies must generally prepare:

• Statement of Financial Position (Balance Sheet)

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Cash Flows

• Notes to the Financial Statements

Listed companies must also comply with enhanced disclosure requirements, including segment reporting, related-party transactions, and risk disclosures.

Financial statements are typically prepared annually, with listed companies also required to produce quarterly reports.

5. Audit Requirements

In Taiwan:

• Listed companies must have annual financial statements audited by a certified public accountant (CPA).

• Certain private companies exceeding capital or revenue thresholds may also require audits.

• Smaller private companies may not require statutory audits but must still maintain proper accounting records.

Taiwan CPAs are regulated under a licensing framework and must adhere to professional auditing standards aligned with International Standards on Auditing (ISA).

6. Functional Currency and Reporting

Most domestic companies report in New Taiwan Dollar (TWD).

Companies with substantial foreign operations may face:

• Foreign currency translation adjustments

• Consolidation requirements for overseas subsidiaries

• Transfer pricing documentation for cross-border transactions

Taiwan’s tax system and accounting standards interact closely, but taxable income is not always identical to accounting profit due to tax-specific adjustments.

7. Practical Considerations for Foreign Investors

For foreign companies entering Taiwan:

• A Taiwan subsidiary will generally follow EAS unless publicly listed.

• If consolidation into a global IFRS or US GAAP group is required, reconciliation may be necessary (though limited under T-IFRS).

• Proper bookkeeping in Mandarin is standard, but bilingual reporting is common for multinational groups.

• Timely tax filings and bookkeeping are essential to avoid penalties.

Because Taiwan’s framework is highly aligned with IFRS, multinational companies often find integration into global reporting structures relatively straightforward.

Engage MSA for Taiwan Accounting Services

MSA offers a full range of Taiwan accounting services, alongside its Taiwan company registration and Ready to optimize your accounting in Taiwan?

Contact us now to schedule a consultation.