Role of Offshore Companies for Taiwanese Enterprise Investing in China

• Main Authors: Chih-Ying Weng, 翁芷瑩
• Other Authors: Jian-Jong Guo
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/02401904335027159610

碩士 === 淡江大學 === 中國大陸研究所碩士班 === 97 === With the rapid expansion of trading and investment between Taiwan and China, the investment risk, fund dispatching and tax planning has been increasingly important for Taiwanese Enterprise in China. Even though Taiwan government has abolished the policy which requires all China trading and investment must go through third country, most of Taiwanese enterprises have still rely on offshore company to complete their trade and investment on China. Especially the Enterprise Income Tax Law has been implemented in the People’s Republic of China since 2008. Under this new tax law, the operating cost has been rise up among Taiwanese Enterprise Investing in China. How to take advantage of offshore companies to achieve tax saving and finance management has become an important issue for Taiwanese investors in China. Offshore companies may help to eliminate, minimize or defer the risk and tax liability of enterprises that leave the profits offshore by transfer pricing. Over the recent years, this operational mode of offshore companies also attracted the attentions among the international organizations and governments. Therefore, the role of the offshore companies has gradually been emphasized in the global or cross-strait trade developments. The purpose of thesis is to discuss the framework that Taiwanese Enterprise invests China through offshore company, and to further analyze the role of offshore company. In addition, this thesis might apply the relations between China and other countries to explain which offshore company of which country and area would be more appropriately applied to our indirect invest framework. In this study, the role of offshore companies for Taiwanese Enterprise Investing in China was conclusion as the following: 1. The role of offshore companies for Taiwanese Enterprise Investing in China is investment, trading and tax planning 2. The elect of offshore company should be based on the role of the company itself, such like trading companies would be much recommended to persue the good image, and holding companies would be more suitable with convenience and low cost. 3. Taiwanese Enterprise should take good advantage of the countries and areas where has signed tax agreement with china in order to plan investing framework and thus to reduce the risk and taxes.