Asia and Global Semiconductor and Tech Research

Andrew Lu

Former Head of Asia ex-Japan Semiconductor and TFT-LCD/Touch Research at Barclays and Citi Bank, Former Head of Technology at 國金證券

Thematic (Sector/Industry)

<h2>What's new?</h2><p>Taiwan Ministry of Finance announced yesterday a new tax reform (starting 2019 calendar year for 2018 income taxes) to cut personal tax ceiling to 40% from 45% but raise the corporate tax rate to 20% from 17% coupled with 50% cut on retained earning taxes to 5% from 10%. For the same reform, cash dividends taxes for domestic investors will be cut substantially but be raised by 1% to 21% for foreign investors. Post our analysis, we conclude the reform is positive</p><p>Post our analysis, we…</p>

What's new?Taiwan Ministry of Finance announced yesterday a new tax reform (starting 2019 calendar year for 2018 income taxes) to cut personal tax ceiling to 40% from 45% but raise the corporate tax rate to 20% from 17% coupled with 50% cut on retained earning taxes to 5% from 10%. For the same reform, cash dividends taxes for domestic investors will be cut substantially but be raised by 1% to 21% for foreign investors. Post our analysis, we conclude the reform is positivePost our analysis, we…

Taiwan Tax Reform: Positive to Domestic Investors but Only Marginal Impact to Corporates' Earnings