Taiwan, China Doing Business 2020

Economy Profile

Taiwan, China

Doing Business

2020

Page 1

Economy Profile of

Taiwan, China

Doing Business 2020 Indicators

(in order of appearance in the document)

Starting a business

Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety

mechanisms in the construction permitting system

Getting electricity

Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and

the transparency of tariffs

Registering property

Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit

Movable collateral laws and credit information systems

Protecting minority investors

Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes

Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling

processes

Trading across borders

Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts

Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency

Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for

insolvency

Employing workers

Flexibility in employment regulation and redundancy cost

Taiwan, China

Doing Business

2020

Page 2

About Doing Business

The

project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and

regional level.

Doing Business

The

project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life

cycle.

Doing Business

captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for

starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across

borders, enforcing contracts and resolving insolvency.

also measures features of employing workers. Although

does not present rankings

of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does

present the data for these indicators.

Doing Business

Doing Business Doing Business

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,

encourages

economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector

researchers and others interested in the business climate of each economy.

Doing Business

In addition,

offers detailed

, which exhaustively cover business regulation and reform in different cities and regions within a nation.

These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected

cities can compare their business regulations with other cities in the economy or region and with the 190 economies that

has ranked.

Doing Business

subnational studies

Doing Business

The first

study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most

indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013

(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where

also collected data

for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from

feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the

regulatory environment for business around the world.

Doing Business

To learn more about

please visit

Doing Business

doingbusiness.org

Taiwan, China

Doing Business

2020

Page 3

Ease of Doing Business in

Taiwan, China

Region

East Asia & Pacific

Income Category

High income

Population

23,588,932

City Covered

Taipei

DB RANK DB SCORE

80.9

Rankings on Doing Business topics -

Taiwan, China

104

Starting

Business

Dealing

with

Construction

Permits

Getting

Electricity

Registering

Property

Getting

Credit

Protecting

Minority

Investors

Paying

Taxes

Trading

across

Borders

Enforcing

Contracts

Resolving

Insolvency

Topic Scores

94.4 87.1 96.3 83.9 50.0 76.0 84.3 84.9 75.1 77.1

(rank)

Starting a Business

Score of starting a business (0-100)

94.4

Procedures (number)

Time (days)

Cost (number)

1.9

Paid-in min. capital (% of income per capita)

0.0

(rank)

Dealing with Construction Permits

Score of dealing with construction permits (0-100)

87.1

Procedures (number)

Time (days)

Cost (% of warehouse value)

0.4

Building quality control index (0-15)

13.0

(rank)

Getting Electricity

Score of getting electricity (0-100)

96.3

Procedures (number)

Time (days)

Cost (% of income per capita)

37.0

Reliability of supply and transparency of tariff index (0-8)

(rank)

Registering Property

Score of registering property (0-100)

83.9

Procedures (number)

Time (days)

Cost (% of property value)

6.2

Quality of the land administration index (0-30)

28.5

(rank)

Getting Credit

104

Score of getting credit (0-100)

50.0

Strength of legal rights index (0-12)

Depth of credit information index (0-8)

Credit registry coverage (% of adults)

0.0

Credit bureau coverage (% of adults)

100.0

(rank)

Protecting Minority Investors

Score of protecting minority investors (0-100)

76.0

Extent of disclosure index (0-10)

9.0

Extent of director liability index (0-10)

5.0

Ease of shareholder suits index (0-10)

7.0

Extent of shareholder rights index (0-6)

4.0

Extent of ownership and control index (0-7)

6.0

Extent of corporate transparency index (0-7)

7.0

(rank)

Paying Taxes

Score of paying taxes (0-100)

84.3

Payments (number per year)

Time (hours per year)

221

Total tax and contribution rate (% of profit)

36.8

Postfiling index (0-100)

92.2

(rank)

Trading across Borders

Score of trading across borders (0-100)

84.9

Time to export

Documentary compliance (hours)

Border compliance (hours)

Cost to export

Documentary compliance (USD)

Border compliance (USD)

335

Time to export

Documentary compliance (hours)

Border compliance (hours)

Cost to export

Documentary compliance (USD)

Border compliance (USD)

340

(rank)

Enforcing Contracts

Score of enforcing contracts (0-100)

75.1

Time (days)

510

Cost (% of claim value)

18.3

Quality of judicial processes index (0-18)

14.0

(rank)

Resolving Insolvency

Score of resolving insolvency (0-100)

77.1

Recovery rate (cents on the dollar)

82.2

Time (years)

1.9

Cost (% of estate)

4.0

Outcome (0 as piecemeal sale and 1 as going

concern)

Strength of insolvency framework index (0-16)

10.5

Taiwan, China

Doing Business

2020

Page 4

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and

formally operate in each economy’s largest business city.

To make the data comparable across 190 economies,

uses a standardized business that is 100% domestically owned, has start-up capital equivalent to

10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of

operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one

company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their

scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Doing Business

The most recent round of data collection for the project was completed in May 2019.

See the methodology for more information

What the indicators measure

Procedures to legally start and formally operate a company

(number)

Preregistration (for example, name verification or reservation,

notarization)

•

Registration in the economy’s largest business city

•

Postregistration (for example, social security registration,

company seal)

•

Obtaining approval from spouse to start a business or to leave

the home to register the company

•

Obtaining any gender specific document for company

registration and operation or national identification card

•

Time required to complete each procedure (calendar days)

Does not include time spent gathering information

•

Each procedure starts on a separate day (2 procedures cannot

start on the same day)

•

Procedures fully completed online are recorded as ½ day

•

Procedure is considered completed once final document is

received

•

No prior contact with officials

•

Cost required to complete each procedure (% of income per

capita)

Official costs only, no bribes

•

No professional fees unless services required by law or

commonly used in practice

•

Paid-in minimum capital (% of income per capita)

•

Funds deposited in a bank or with third party before registration

or up to 3 months after incorporation

Case study assumptions

To make the data comparable across economies, several assumptions about the business and the

procedures are used. It is assumed that any required information is readily available and that the

entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited

liability company in the economy, the limited liability form most common among domestic firms is

chosen. Information on the most common form is obtained from incorporation lawyers or the

statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for

the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of

goods or services. The business does not perform foreign trade activities and does not handle

products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily

polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the

company shares, two owners have 20% of shares each, and two owners have 15% of shares

each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them

domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there

is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in

question (as may be the case in economies where there is legal plurality), the answer used will be

the one that applies to the majority of the population.

Taiwan, China

Doing Business

2020

Page 5

Starting a Business - Taiwan, China

Figure – Starting a Business in Taiwan, China – Score

Procedures

88.2

Time

90.5

Cost

99.1

Paid-in min. capital

100.0

Figure – Starting a Business in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

0 100

98.2: Hong Kong SAR, China (Rank: 5)

94.4: Taiwan, China (Rank: 21)

93.4: Korea, Rep. (Rank: 33)

86.1: Japan (Rank: 106)

83.9: Regional Average (East Asia & Pacific)

83.3: Malaysia (Rank: 126)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of

the scores for each of the component indicators.

Standardized Company

Legal form

Private Company Limited By Shares

Paid-in minimum capital requirement

No minimum

City Covered

Taipei

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Procedure – Men (number)

6.5

4.9

1 (2 Economies)

Time – Men (days)

25.6

9.2

0.5 (New Zealand)

Cost – Men (% of income per capita)

1.9

17.4

3.0

0.0 (2 Economies)

Procedure – Women (number)

6.6

4.9

1 (2 Economies)

Time – Women (days)

25.7

9.2

0.5 (New Zealand)

Cost – Women (% of income per capita)

1.9

17.4

3.0

0.0 (2 Economies)

Paid-in min. capital (% of income per capita)

0.0

3.5

7.6

0.0 (120 Economies)

Taiwan, China

Doing Business

2020

Page 6

Figure – Starting a Business in Taiwan, China – Procedure, Time and Cost

This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the

time for women. For more information on methodology, see the

website (

). For details on the procedures

reflected here, see the summary below.

Doing Business

http://doingbusiness.org/en/methodology

Procedures (number)

1 2 3

Time (days)

0.2

0.4

0.6

0.8

1.2

1.4

1.6

1.8

Cost (% of income per capita)

Time (days) Cost (% of income per capita)

Taiwan, China

Doing Business

2020

Page 7

Details – Starting a Business in Taiwan, China – Procedure, Time and Cost

Takes place simultaneously with previous procedure.

No.

Procedures

Time to Complete

Associated Costs

Use the online platform to complete pre-registration inquiry and reservation of company

name, file applications for incorporation, taxation registration, labor insurance, national

health insurance, labor pension contributions and submission of corporate work rules

: Ministry of Economic Affairs (MOEA)

Agency

Entrepreneurs can search the availability of the company name online at the Company, Business

and Limited Partnership One-Stop Service Request Website (http://onestop.nat.gov.tw).

Applications for company registration can be done online or in person at the relevant agency. For

companies with a start-up capital of NT$500 million or more, the application should be submitted

to the Department of Commerce of the Ministry of Economic Affairs (MOEA). For companies with

a start-up capital of less than NT$500 million, it should be submitted to either the Central Region

Office of MOEA or the Taipei City Government.

The review of pre-registration enquiry and reservation of company name takes 1 day, and review

of application for incorporation that follows will take another 1 day. Government officials are

required to review the application on the second day. At the end of the second day, (if approved)

the approval shall be ready and the applicant can pick it up from MOEA. Otherwise, it is mailed to

the applicant, in which case it takes up to four days to receive the confirmation. Starting December

2018, results of application can be delivered to the applicant by way of electronic transmission.

Entrepreneurs may also carry out the tax registration simultaneously, as well as labor insurance

application, national health insurance application and pension fund plan appropriation application

in the three-in-one comprehensive application procedure. National health insurance, labor

insurance, and the pension plan report can be filed with one consolidated form. All firms may

apply for national health insurance regardless of the number of employees, but only companies

with five or more employees may apply for labor insurance (per Article 6 of the Labor Insurance

Act). Also, when the number of employees is more than 30, the company shall simultaneously

declare the work rules with the Council of Labor Affairs. If everything is in order, these applications

can be approved within 5-7 working days. The aforementioned applications can be completed on

the Company, Business and Limited Partnership One-Stop Service Request Website.

Applicants may elect to make the above applications by means of “non-online application,”

including by mail or over the counter, and the review and approval time of which shall be the same

as “online applications”.

7 days

TWD 150 (online pre-

registration enquiry and

reservation of company

name) or TWD 300 (non-

online pre-registration

enquiry and reservation of

company name) + 0.025%

of capital (in case the

registration fee payable is

less than TWD 1,000, the

registration fee shall be

TWD 1,000)

Make a company seal

: Seal maker

Agency

A set of company seals is commonly prepared for registration (unless done online), and include

the name of the company and name of the chairperson of the board of directors. Such seals are

also commonly used in executing contracts, bank transactions, business transactions, applications

and official documents. Starting October 2018, affixing seals of the company and the responsible

person on incorporation documents in hard-copy applications is no longer required by the

competent authority and such seal-affixing can be replaced by signatures.

1 day

TWD 450 (depending on

the number/ material used,

each range from TWD 450

to TWD 1000)

Submit a CPA audit report showing that the amount of capital invested can cover company

establishment cost

: Ministry of Economic Affairs (MOEA)

Agency

In place of showing that the invested capital will cover the costs of establishing a company to the

Ministry of Economic Affairs, entrepreneurs can submit a CPA audit report showing that the

invested capital has been fully paid pursuant to Article 7 of Regulations Governing Certification of

Capital upon Registration Applications of Companies (last amended on Nov. 11, 2018). Section 1

of Article 7 of Company Act (last amended on January 4, 2012) allows a company to attach an

auditing certificate from an independent certified public accountant within 30 days after the

registration of incorporation. Entrepreneurs can also submit the audit report via the One-Stop-

Shop online system (http://onestop.nat.gov.tw) using electronic signature.

2 days

TWD 5,000 - 20,000 fee

varies across firms

Taiwan, China

Doing Business

2020

Page 8

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,

requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building

quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional

certification requirements. The most recent round of data collection was completed in May 2019.

See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtaining all necessary

clearances, licenses, permits and certificates

•

Submitting all required notifications and receiving all necessary

inspections

•

Obtaining utility connections for water and sewerage

•

Registering and selling the warehouse after its completion

•

Time required to complete each procedure (calendar days)

Does not include time spent gathering information

•

Each procedure starts on a separate day—though procedures

that can be fully completed online are an exception to this rule

•

Procedure is considered completed once final document is

received

•

No prior contact with officials

•

Cost required to complete each procedure (% of income per

capita)

Official costs only, no bribes

•

Building quality control index (0-15)

Quality of building regulations (0-2)

•

Quality control before construction (0-1)

•

Quality control during construction (0-3)

•

Quality control after construction (0-3)

•

Liability and insurance regimes (0-2)

•

Professional certifications (0-4)

•

Case study assumptions

To make the data comparable across economies, several assumptions about the construction

company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

- Is a limited liability company (or its legal equivalent) and operates in the economy’s largest

business city. For 11 economies the data are also collected for the second largest business city.

- Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a

licensed architect and a licensed engineer, both registered with the local association of architects

or engineers. BuildCo is not assumed to have any other employees who are technical or licensed

experts, such as geological or topographical experts.

- Owns the land on which the warehouse will be built and will sell the warehouse upon its

completion.

The warehouse:

- Will be used for general storage activities, such as storage of books or stationery.

- Will have two stories, both above ground, with a total constructed area of approximately 1,300.6

square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be

located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%

owned by BuildCo, and the warehouse is valued at 50 times income per capita.

- Will have complete architectural and technical plans prepared by a licensed architect. If

preparation of the plans requires such steps as obtaining further documentation or getting prior

approvals from external agencies, these are counted as procedures.

- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory

requirements).

The water and sewerage connections:

- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water

delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage

infrastructure, a septic tank in the smallest size available will be installed or built.

- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow

of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and

a peak wastewater flow of 1,136 liters (300 gallons) a day.

- Will have a constant level of water demand and wastewater flow throughout the year; will be 1

inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Taiwan, China

Doing Business

2020

Page 9

Dealing with Construction Permits - Taiwan, China

Figure – Dealing with Construction Permits in Taiwan, China – Score

Procedures

80.0

Time

83.9

Cost

98.0

Building quality control index

86.7

Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

0 100

93.5: Hong Kong SAR, China (Rank: 1)

89.9: Malaysia (Rank: 2)

87.1: Taiwan, China (Rank: 6)

84.4: Korea, Rep. (Rank: 12)

83.1: Japan (Rank: 18)

70.0: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores

are the simple average of the scores for each of the component indicators.

Standardized Warehouse

Estimated value of warehouse

TWD 39,590,302.50

City Covered

Taipei

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Procedures (number)

14.8

12.7

None in 2018/19

Time (days)

132.3

152.3

None in 2018/19

Cost (% of warehouse value)

0.4

3.2

1.5

None in 2018/19

Building quality control index (0-15)

13.0

9.4

11.6

15.0 (6 Economies)

Taiwan, China

Doing Business

2020

Page 10

Figure – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost

This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the

time for women. For more information on methodology, see the

website (

). For details on the procedures

reflected here, see the summary below.

Doing Business

http://doingbusiness.org/en/methodology

Procedures (number)

1 * 2 3 4 5 6 7 8 9 10

Time (days)

0.05

0.1

0.15

0.2

0.25

Cost (% of warehouse value)

Time (days) Cost (% of warehouse value)

Taiwan, China

Doing Business

2020

Page 11

Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Measure of Quality

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

Index score

13.0

15.0

13.0

12.0

13.0

9.4

Details – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost

No.

Procedures

Time to Complete

Associated Costs

Obtain information about infrastructure from the water company

: Taiwan Water Corporation at One-Stop Counter

Agency

BuildCo visits the One-Stop Counter to obtain information on the intended building site’s water

and electricity infrastructure.

3 days

no charge

Obtain information about electricity infrastructure from electricity provider

: Taiwan Power Company (Taipower) at One-Stop Counter

Agency

Although this is not a mandatory procedures, builders usually resort to the one-stop counter to

obtain information about electricity infrastructure. The information is free of charge and allows the

builder to optimize resources.

3 days

no charge

Request and obtain building permit from the City Government at the One-Stop Counter

: City Government at the One-Stop Counter

Agency

A One-Stop Counter was introduced in March 2011 allowing builders to obtain several approvals

in one place.

Before presenting an application, the applicant should carefully follow the Self Checklist of

Application for Construction Permit and Review of Design for Water Supply Documents (OSC2).

The applicant should then place the application form, drawings and explanations, and other

important documents in proper order in a file envelope, write “Application for Building Permit and

Water Supply” on the outside of the envelope, and deliver this by mail or in person to the Counter.

If, due to particular case circumstances, there is a need for an application to be processed jointly

with another unit, the applicant should fill out a Taipei City Government Building Permit (Design

Alteration) Joint Review Form, selecting the joint processing unit and joint review item(s), and

submit it once.

If an application is not within the scope of the One-Stop Counter’s jurisdiction, or is one that

cannot be processed due to special circumstances, the One-Stop Counter will not be able to

accept it, but will assist the applicant in going through the ordinary channels.

If an application is within the scope of the One-Stop Counter’s jurisdiction, the staff member that

receives it will verify that the correct documents have been submitted, assign the application a

case number, and submit a receipt stamp or fax a receipt stub with the fees that need to be paid.

When the documents are complete, the One-Stop Counter will forward them to the relevant offices

(the Construction Management Office, Bureau of High Speed Rail, Department of Rapid Transit

Systems, Department of Public Works, Department of Cultural Affairs, Department of

Transportation, Department of Land, Department of Urban Development, etc.) to conduct a joint

review. When a joint review of an application has been conducted by the One-Stop Counter and it

has been found that the application does not conform to requirements, the One-Stop Counter will

notify the applicant that he has one chance to make the necessary amendments.

Once all amendments have been made, a construction permit is issued, and fees for the

construction permit, specification of building setback line, wastewater discharge permit, and land

ownership certificate are paid.

It is possible to apply for a building permit online since April 1, 2015 and the website is

http://tccmoapply.dba.tcg.gov.tw:8080/tccmoapply/

21 days

TWD 31,402

Taiwan, China

Doing Business

2020

Page 12

Takes place simultaneously with previous procedure.

Report the start date and present construction plan to the City Government at the One-Stop

Counter and pay air pollution protection fee before starting construction

: City Government at the One-Stop Counter

Agency

After BuildCo obtains the construction permit, he prepares the application for commencement of

construction, a construction plan, and other required documentation and submits them to the One-

Stop Counter.

BuildCo then pays the air pollution protection fee and obtains approval for the commencement of

work.

Under the provisions of Article 4 of the Regulations Governing Construction Project Air Pollution

Prevention Facilities, the case study warehouse would be classified as a Grade 2 construction.

1 day

TWD 25,674

Request occupancy permit, post-contruction approvals and registrations at the One-Stop

Counter

: City Government at the One-Stop Counter

Agency

Where construction is completed without involving damage to adjacent property, BuildCo can take

the original construction permit to the One-Stop Counter and make a one-time submission of the

Self Checklist for Post-Completion Application Documents (OSC4) and apply for an occupancy

permit.

The mode of submission is the same as the construction permit application. BuildCo must place

the relevant application letter, application form, drawings and explanations, and other

documentation required by law or by the regulations of the unit concerned into one envelope for

each separate application. BuildCo must also write the type of application and the unit concerned

on the envelope (e.g., “Application to the Fire Department for post-completion inspection of fire-

fighting equipment.”)

The One-Stop Counter will pass the application documents to the relevant units or review and

processing. If the building is found to be in compliance with applicable regulations, the One-Stop

Counter will approve the issuance of an occupancy permit and BuildCo must pay the applicable

fees. BuildCo may choose to pick up the occupancy permit in person at the One-Stop Counter or

have it mailed to him. The One-Stop Counter will also notify Taipei Water Department to carry out

the water connection procedures.

For the registration of a new building, Point 3 of the Supplementary Regulations on Computing

and Collecting Land Registration Fees and Penalties stipulates that the registration fee is

computed according to the total cost of construction as recorded in the occupancy permit. Article

84 of the Land Registration Regulations stipulates that the general land registration procedure

applies to the registration of a new building; hence the applicable registration fee is 0.2% of the

total cost of construction.

1 day

TWD 79,181

Receive final inspection

: Relevant Agencies at One-Stop Counter

Agency

As part of the review process, the relevant departments will conduct a joint final inspection.

1 day

no charge

Obtain occupancy permit, post-contruction approvals and registrations at the One-Stop

Counter

: City Government at One-Stop Counter

Agency

Once the issuance of the occupancy permit is approved, the One-Stop Counter will transmit the

documentation to apply for registration of title to the local land administration office.

33 days

no charge

Apply for water supply and sewerage connection from Taiwan Water Corporation

: Taiwan Water Corporation

Agency

The applicant may channel the request for water connection through the one stop counter for

building permits or may request it directly from the Taiwan Water Corporation. The Review of

Design for Water Supply Documents (OSC2) should by this point already be completed and a

simple notification is required for the water company inspection to take place.

1 day

no charge

Receive water and sewerage inspections

: Taiwan Water Corporation

Agency

The Taiwan Water Corporation conducts an inspection to evaluate that all conditions have been

met and match the specifications submitted in the Review of Design for Water Supply Documents

(OSC2).

1 day

no charge

Obtain connection to water and sewerage

: Taiwan Water Corporation

Agency

After the water and sewerage inspections are done, BuildCo received water and sewerage

connections.

19 days

TWD 25,000

Taiwan, China

Doing Business

2020

Page 13

Details – Dealing with Construction Permits in Taiwan, China – Measure of Quality

Answer

Score

Building quality control index (0-15)

13.0

Quality of building regulations index (0-2)

2.0

How accessible are building laws and regulations in your economy? (0-1)

Available online; Free

of charge.

1.0

Which requirements for obtaining a building permit are clearly specified in the building regulations or on any

accessible website, brochure or pamphlet? (0-1)

List of required

documents; Fees to

be paid; Required

preapprovals.

1.0

Quality control before construction index (0-1)

1.0

Which third-party entities are required by law to verify that the building plans are in compliance with existing

building regulations? (0-1)

Licensed architect.

1.0

Quality control during construction index (0-3)

2.0

What types of inspections (if any) are required by law to be carried out during construction? (0-2)

Inspections by in-

house engineer;

Unscheduled

inspections.

1.0

Do legally mandated inspections occur in practice during construction? (0-1)

Mandatory

inspections are

always done in

practice.

1.0

Quality control after construction index (0-3)

3.0

Is there a final inspection required by law to verify that the building was built in accordance with the approved

plans and regulations? (0-2)

Yes, final inspection

is done by

government agency;

Yes, in-house

engineer submits

report for final

inspection.

2.0

Do legally mandated final inspections occur in practice? (0-1)

Final inspection

always occurs in

practice.

1.0

Liability and insurance regimes index (0-2)

1.0

Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use

(Latent Defect Liability or Decennial Liability)? (0-1)

Professional in

charge of the

supervision;

Construction

company; Owner or

investor.

1.0

Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or

problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)

No party is required

by law to obtain

insurance .

0.0

Professional certifications index (0-4)

4.0

What are the qualification requirements for the professional responsible for verifying that the architectural plans

or drawings are in compliance with existing building regulations? (0-2)

Minimum number of

years of experience;

University degree in

architecture or

engineering; Being a

registered architect or

engineer; Passing a

certification exam.

2.0

Taiwan, China

Doing Business

2020

Page 14

What are the qualification requirements for the professional who supervises the construction on the ground? (0-

Minimum number of

years of experience;

University degree in

engineering,

construction or

construction

management; Being

a registered architect

or engineer; Passing

a certification exam.

2.0

Taiwan, China

Doing Business

2020

Page 15

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,

the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data

collection for the project was completed in May 2019.

See the methodology for more information

What the indicators measure

Procedures to obtain an electricity connection (number)

Submitting all relevant documents and obtaining all necessary

clearances and permits

•

Completing all required notifications and receiving all necessary

inspections

•

Obtaining external installation works and possibly purchasing

material for these works

•

Concluding any necessary supply contract and obtaining final

supply

•

Time required to complete each procedure (calendar days)

Is at least 1 calendar day

•

Each procedure starts on a separate day

•

Does not include time spent gathering information

•

Reflects the time spent in practice, with little follow-up and no

prior contact with officials

•

Cost required to complete each procedure (% of income per

capita)

Official costs only, no bribes

•

Value added tax excluded

•

The reliability of supply and transparency of tariffs index (0-8)

Duration and frequency of power outages (0–3)

•

Tools to monitor power outages (0–1)

•

Tools to restore power supply (0–1)

•

Regulatory monitoring of utilities’ performance (0–1)

•

Financial deterrents limiting outages (0–1)

•

Transparency and accessibility of tariffs (0–1)

•

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercial warehouse in case

study

•

*Note:

measures the price of electricity, but it is

not included in the ease of doing business score nor in the ranking

on the ease of getting electricity.

Doing Business

Case study assumptions

To make the data comparable across economies, several assumptions about the warehouse, the

electricity connection and the monthly consumption are used.

The warehouse:

- Is owned by a local entrepreneur and is used for storage of goods.

- Is located in the economy’s largest business city. For 11 economies the data are also collected for

the second largest business city.

- Is located in an area where similar warehouses are typically located and is in an area with no

physical constraints. For example, the property is not near a railway.

- Is a new construction and is being connected to electricity for the first time.

- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square

feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:

- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-

kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).

- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution

network and is either overhead or underground, whichever is more common in the area where the

warehouse is located and requires works that involve the crossing of a 10-meter road (such as by

excavation or overhead lines) but are all carried out on public land. There is no crossing of other

owners’ private property because the warehouse has access to a road.

- Does not require work to install the internal wiring of the warehouse. This has already been

completed up to and including the customer’s service panel or switchboard and the meter base.

The monthly consumption:

- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours

a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts

(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours

(kWh); hourly consumption is 112 kWh.

- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.

- Tariffs effective in January of the current year are used for calculation of the price of electricity for

the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

Taiwan, China

Doing Business

2020

Page 16

Getting Electricity - Taiwan, China

Figure – Getting Electricity in Taiwan, China – Score

Procedures

100.0

Time

98.3

Cost

99.5

Reliability of supply and transparency of

tariff index

87.5

Figure – Getting Electricity in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

0 100

99.9: Korea, Rep. (Rank: 2)

99.3: Hong Kong SAR, China (Rank: 3)

99.3: Malaysia (Rank: 4)

96.3: Taiwan, China (Rank: 9)

93.2: Japan (Rank: 14)

75.1: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the

scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Taiwan, China – Procedure, Time and Cost

This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the

time for women. For more information on methodology, see the

website (

). For details on the procedures

Doing Business

http://doingbusiness.org/en/methodology

Procedures (number)

1 2 3

Time (days)

Cost (% of income per capita)

Time (days) Cost (% of income per capita)

Standardized Connection

Name of utility

Taiwan Power Company

Price of electricity (US cents per kWh)

11.7

City Covered

Taipei

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Procedures (number)

4.2

4.4

3 (28 Economies)

Time (days)

63.2

74.8

18 (3 Economies)

Cost (% of income per capita)

37.0

594.6

61.0

0.0 (3 Economies)

Reliability of supply and transparency of tariff index (0-8)

4.0

7.4

8 (26 Economies)

Taiwan, China

Doing Business

2020

Page 17

reflected here, see the summary below.

Figure – Getting Electricity in Taiwan, China and comparator economies – Measure of Quality

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

Index score

8 8 8 8

4.0

Taiwan, China

Doing Business

2020

Page 18

Details – Getting Electricity in Taiwan, China – Procedure, Time and Cost

Takes place simultaneously with previous procedure.

No.

Procedures

Time to Complete

Associated Costs

Submit application for connection and await completion of design

: Taiwan Power Company (TPC)

Agency

The customer fills out an application form and sends it to (or takes it to) TPC’s branch and pays

the fee for connection. The following documents are required: Application form, an indoors wires

diagram, and the usage license or certificate approved by authorities of building. TPC will then

design the external line.

Before the external connection works can start the utility has to finish the design for the works. In

this case, when the customer submits an application at a TPC branch, TPC will estimate the

customer's Contribution in Aid of Construction Costs. The customer can pay the fee when they

apply.

The Customer’s Contribution in Aid of Construction Costs includes fees for the power line design,

construction, meter installation and check of the internal wiring, and labor costs.

4 calendar days

TWD 293,202

Await completion of external works by TPC’s subcontractor

: Taiwan Power Company (TPC)

Agency

The contractor hired by the utility will complete the external connection work. All material is

available in most cases. The customer doesn’t have to buy any material for the external

connection works.

At this stage, an excavation permit must be obtained by the utility. It is obtained from the agency

of the government that is in charge of the roads. Once the permit has been issued, the utility's

contractor will execute the trench excavation, installation of the cables and pavement

rehabilitation.

17 calendar days

TWD 0

Await meter installation, internal wiring inspection and electricity flow from TPC

: Taiwan Power Company (TPC)

Agency

The electrician who did the internal wiring submits a signed notification to the utility upon

completion in which they guarantee it has been carried out according to the regulations. Then TPC

will inspect the internal wiring after the external connection works are over.

According to Article 32 of "The Electricity Act", the installation of user electricity devices by

electricity enterprises shall comply with relevant regulations provided by the central competent

authority and electricity supply may only be connected after said devices have passed inspection.

For electricity equipment already installed by the user, inspection shall be carried out with the

result thereof recorded at least once every three years. In the event that non-conformity is found,

a time period shall be specified for the user to make rectification.

Taipower inspects the internal wiring and installs the meter after the external connection works are

over. If the internal wiring check is passed, the meter will be installed and the electricity will start

flowing.

1 calendar day

TWD 0

Taiwan, China

Doing Business

2020

Page 19

Details – Getting Electricity in Taiwan, China – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Answer

Reliability of supply and transparency of tariff index (0-8)

Total duration and frequency of outages per customer a year (0-3)

System average interruption duration index (SAIDI)

0.3

System average interruption frequency index (SAIFI)

0.2

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI

1.0

Mechanisms for monitoring outages (0-1)

Does the distribution utility use automated tools to monitor outages?

Yes

Mechanisms for restoring service (0-1)

Does the distribution utility use automated tools to restore service?

Yes

Regulatory monitoring (0-1)

Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?

Yes

Financial deterrents aimed at limiting outages (0-1)

Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?

Yes

Communication of tariffs and tariff changes (0-1)

Are effective tariffs available online?

Yes

Link to the website, if available online

ttp://www.taipower.com.tw

/tc/page.aspx?mid=238

Are customers notified of a change in tariff ahead of the billing cycle?

Taiwan, China

Doing Business

2020

Page 20

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a

building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality

of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access

to property rights. The most recent round of data collection for the project was completed in May 2019.

See the methodology for more information

What the indicators measure

Procedures to legally transfer title on immovable property

(number)

Preregistration procedures (for example, checking for liens,

notarizing sales agreement, paying property transfer taxes)

•

Registration procedures in the economy's largest business city.

•

Postregistration procedures (for example, filling title with

municipality)

•

Time required to complete each procedure (calendar days)

Does not include time spent gathering information

•

Each procedure starts on a separate day - though procedures

that can be fully completed online are an exception to this rule

•

Procedure is considered completed once final document is

received

•

No prior contact with officials

•

Cost required to complete each procedure (% of property

value)

Official costs only (such as administrative fees, duties and

taxes).

•

Value Added Tax, Capital Gains Tax and illicit payments are

excluded

•

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)

•

Transparency of information index (0–6)

•

Geographic coverage index (0–8)

•

Land dispute resolution index (0–8)

•

Equal access to property rights index (-2–0)

•

Case study assumptions

To make the data comparable across economies, several assumptions about the parties to the

transaction, the property and the procedures are used.

The parties (buyer and seller):

- Are limited liability companies (or the legal equivalent).

- Are located in the periurban (that is, on the outskirts of the city but still within its official limits)

area of the economy’s largest business city. For 11 economies the data are also collected for the

second largest business city.

- Are 100% domestically and privately owned.

- Perform general commercial activities.

The property (fully owned by the seller):

- Has a value of 50 times income per capita, which equals the sale price.

- Is fully owned by the seller.

- Has no mortgages attached and has been under the same ownership for the past 10 years.

- Is registered in the land registry or cadastre, or both, and is free of title disputes.

- Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its

official limits), and no rezoning is required.

- Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-

story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse

is 10 years old, is in good condition, has no heating system and complies with all safety standards,

building codes and legal requirements. The property, consisting of land and building, will be

transferred in its entirety.

- Will not be subject to renovations or additional construction following the purchase.

- Has no trees, natural water sources, natural reserves or historical monuments of any kind.

- Will not be used for special purposes, and no special permits, such as for residential use,

industrial plants, waste storage or certain types of agricultural activities, are required.

- Has no occupants, and no other party holds a legal interest in it.

Taiwan, China

Doing Business

2020

Page 21

Registering Property - Taiwan, China

Figure – Registering Property in Taiwan, China – Score

Procedures

83.3

Time

98.6

Cost

58.7

Quality of the land administration index

95.0

Figure – Registering Property in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Registering Property Score

0 100

83.9: Taiwan, China (Rank: 20)

79.5: Malaysia (Rank: 33)

76.3: Korea, Rep. (Rank: 40)

75.6: Japan (Rank: 43)

73.6: Hong Kong SAR, China (Rank: 51)

57.5: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of

the scores for each of the component indicators.

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Procedures (number)

5.5

4.7

1 (5 Economies)

Time (days)

71.9

23.6

1 (2 Economies)

Cost (% of property value)

6.2

4.5

4.2

0.0 (Saudi Arabia)

Quality of the land administration index (0-30)

28.5

16.2

23.2

None in 2018/19

Taiwan, China

Doing Business

2020

Page 22

Figure – Registering Property in Taiwan, China – Procedure, Time and Cost

This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the

time for women. For more information on methodology, see the

website (

). For details on the procedures

reflected here, see the summary below.

Doing Business

http://doingbusiness.org/en/methodology

Procedures (number)

1 2 3

0.5

1.5

2.5

3.5

Time (days)

Cost (% of property value)

Time (days) Cost (% of property value)

Taiwan, China

Doing Business

2020

Page 23

Figure – Registering Property in Taiwan, China and comparator economies – Measure of Quality

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

Index score

28.5

27.5

25.5

27.5

26.5

16.2

Details – Registering Property in Taiwan, China – Procedure, Time and Cost

Takes place simultaneously with previous procedure.

No.

Procedures

Time to Complete

Associated Costs

Buyer researches the property rights and encumbrances registered against the property at

the registry of titles

: Land Registry

Agency

The buyer obtains copies of the land and building's registration from the electronic registration

database. Each page costs TWD 20.

Less than one day,

online

TWD 50; (TWD 10 for the

search and TWD 20 per

sheet of e-transcript)

Buyer pays the Deed tax at the Municipality

: Municipality

Agency

The Deed tax is 6% of the standard property value, and buyer pays it at the Municipality. Seller

pays the Land value increase tax.

As a result, Taiwan government (Real-estate Valuation Committee) issues so-called "standard"

valuation information of property every year for tax authorities' and tax payers' reference. After

years, such government announcement of valuation becomes the reported tax base by taxpayers

and acceptable by tax authorities. The real "contract price" might be ignored when filing deed tax

in practice now. The standard value is always lower than market price.

As of January 30 2005, the Land value increase tax (capital gains tax) is levied according to the

following rates:

(1) Where the net increase of the value of any land is no more than 100 percent of the original

value of such land, the rate shall be 20 percent of the net increase.

(2) Where the net increase of the value of any land is no more than 200 percent of the original

value of such land, the rate shall be 30 percent of that part of the net increase which exceeds the

original value by more than 100 percent in addition to the rate prescribed in the preceding section.

(3) Where the net increase of the value of any land is no more than 300 percent of the original

value of such land, the rate shall be 40 perсent of that part of the net increase which exceeds the

original value by more than 200 percent in addition to the rates prescribed in the preceding

section.

As of October 2009, the Ministry of Finance completed the development of the Local Tax Online

Filing Portal, provided for use by the public nationwide.

Taiwan government spent two years planning this system, which enables the public to carry out

the filing for these local taxes online at home, and speeds up the procedure for property

registration. (The Local Tax Online Filing Portal website can be visited at:

https://net.tax.nat.gov.tw/PLRX/Lrx200d01)

Less than one day,

online

TWD 2,415,008.45; (6% of

standard property value

(Deed Tax) + 0.1% Stamp

Duty)

Registration of transfer of title at the Land Registry

: Land Registry

Agency

The transfer of title is registered at the Land Registry. The original ownership certificate must be

returned and a new one is issued.

3 days

TWD 39,670.3; (0.1% of

property value (registration

fee) + TWD 80 for new

ownership certificate)

Taiwan, China

Doing Business

2020

Page 24

Details – Registering Property in Taiwan, China – Measure of Quality

Answer

Score

Quality of the land administration index (0-30)

28.5

Reliability of infrastructure index (0-8)

8.0

Type of land registration system in the economy:

Title Registration

System

What is the institution in charge of immovable property registration?

Land Office

In what format are past and newly issued land records kept at the immovable property registry of the largest

business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?

Computer/Fully digital

2.0

Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,

restrictions and the like)?

Yes

1.0

Institution in charge of the plans showing legal boundaries in the largest business city:

Land Office

In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business

city of the economy—in a paper format or in a computerized format (scanned or fully digital)?

Computer/Fully digital

2.0

Is there an electronic database for recording boundaries, checking plans and providing cadastral information

(geographic information system)?

Yes

1.0

Is the information recorded by the immovable property registration agency and the cadastral or mapping agency

kept in a single database, in different but linked databases or in separate databases?

Single database

1.0

Do the immovable property registration agency and cadastral or mapping agency use the same identification

number for properties?

Yes

1.0

Transparency of information index (0–6)

4.5

Who is able to obtain information on land ownership at the agency in charge of immovable property registration

in the largest business city?

Anyone who pays the

official fee

1.0

Is the list of documents that are required to complete any type of property transaction made publicly available–

and if so, how?

Yes, online

0.5

Link for online access:

https://www.e-

services.taipei.gov.tw/

hypage.exe?

HYPAGE=index_01.h

tm&clsid0=1&clsid1=

24&clsid2=39&cond=

all&total_srv=103#sh

owname_place

https://land.gov.taipei/

Content_List.aspx?

n=0C6C83A1A03CB

F3E

Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable

property registration in the largest business city made publicly available–and if so, how?

Yes, online

0.5

Link for online access:

https://land.gov.taipei/

Content_List.aspx?

n=FEFA105CCF07A8

http://w2.land.taipei.g

ov.tw/calc/exp/r_2.as

Does the agency in charge of immovable property registration agency formally commit to deliver a legally

binding document that proves property ownership within a specific timeframe –and if so, how does it

communicate the service standard?

Yes, online

0.5

Taiwan, China

Doing Business

2020

Page 25

Link for online access:

https://www.e-

services.taipei.gov.tw/

hypage.exe?

HYPAGE=index_01.h

tm&clsid0=1&clsid1=

24&clsid2=39&cond=

all&total_srv=115#sh

owname_place

https://english.land.go

v.taipei/News_Conten

t.aspx?

n=8CE283FEF271A3

DE&sms=3EFF68CA

442E4C26&s=6B919

81900D89B94

https://land.gov.taipei/

News_Content.aspx?

n=999E4D18FDCB04

F5&sms=8ECE54C6

060A1CF4&s=44C97

7F62376D8B5

Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the agency

in charge of immovable property registration?

0.0

Contact information:

Are there publicly available official statistics tracking the number of transactions at the immovable property

registration agency?

Yes

0.5

Number of property transfers in the largest business city in 2018:

25760.0

Who is able to consult maps of land plots in the largest business city?

Anyone who pays the

official fee

0.5

Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?

Yes, online

0.5

Link for online access:

http://w2.land.taipei.g

ov.tw/calc/exp/s_13.a

http://www.land.moi.g

ov.tw/law/chhtml/main

frame.asp?

LCID=305&lawname

=%A4g%A6a%BD%

C6%A4V%B6O%A4

%CE%AB%D8%BFv

%A7%EF%A8}%AA

%AB%B4%FA%B6q

%B6O%A6%AC%B6

O%BC%D0%B7%C7

&lcmod=%A4%A4%B

5%D8%A5%C1%B0

%EA103%A6~5%A4

%EB8%A4%E9%A4

%BA%ACF%B3%A1

%A5x%A4%BA%A6a

%A6r%B2%C410301

52777%B8%B9%A5

O%AD%D7%A5%BF

%B5o%A5%AC

Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and

if so, how does it communicate the service standard?

Yes, online

0.5

Link for online access:

https://www.e-

services.taipei.gov.tw/

hypage.exe?

HYPAGE=form.htm&

s_uid=024031

Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the

cadastral or mapping agency?

0.0

Contact information:

Geographic coverage index (0–8)

8.0

Are all privately held land plots in the largest business city formally registered at the immovable property

registry?

Yes

2.0

Taiwan, China

Doing Business

2020

Page 26

Are all privately held land plots in the economy formally registered at the immovable property registry?

Yes

2.0

Are all privately held land plots in the largest business city mapped?

Yes

2.0

Are all privately held land plots in the economy mapped?

Yes

2.0

Land dispute resolution index (0–8)

8.0

Does the law require that all property sale transactions be registered at the immovable property registry to make

them opposable to third parties?

Yes

1.5

Legal basis:

Article 758 of Civil

Code and article 4 of

Regulations of the

Land Registration

Is the system of immovable property registration subject to a state or private guarantee?

Yes

0.5

Type of guarantee:

State guarantee

Legal basis:

Article 43 and 68 of

Land Act, and article

759-1 of Civil Code

Is there a is a speciﬁc, out-of-court compensation mechanism to cover for losses incurred by parties who

engaged in good faith in a property transaction based on erroneous information certified by the immovable

property registry?

Yes

0.5

Legal basis:

Article 68 and 70 of

Land Act. and article

759-1 of Civil Code

Does the legal system require a control of legality of the documents necessary for a property transaction (e.g.,

checking the compliance of contracts with requirements of the law)?

Yes

0.5

If yes, who is responsible for checking the legality of the documents?

Registrar;

Does the legal system require verification of the identity of the parties to a property transaction?

Yes

0.5

If yes, who is responsible for verifying the identity of the parties?

Registrar;

Is there a national database to verify the accuracy of government issued identity documents?

Yes

1.0

What is the Court of first instance in charge of a case involving a standard land dispute between two local

businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located

in the largest business city?

Taiwan Taipei District

Court

How long does it take on average to obtain a decision from the first-instance court for such a case (without

appeal)?

Less than a year

3.0

Are there publicly available statistics on the number of land disputes at the economy level in the ﬁrst instance

court?

Yes

0.5

Number of land disputes in the economy in 2018:

139098.0

Equal access to property rights index (-2–0)

0.0

Do unmarried men and unmarried women have equal ownership rights to property?

Yes

Do married men and married women have equal ownership rights to property?

Yes

0.0

Taiwan, China

Doing Business

2020

Page 27

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most

recent round of data collection for the project was completed in May 2019.

See the methodology for more information

What the indicators measure

Strength of legal rights index (0–12)

Rights of borrowers and lenders through collateral laws (0-10)

•

Protection of secured creditors’ rights through bankruptcy laws

(0-2)

•

Depth of credit information index (0–8)

Scope and accessibility of credit information distributed by

credit bureaus and credit registries (0-8)

•

Credit bureau coverage (% of adults)

Number of individuals and firms listed in largest credit bureau

as a percentage of adult population

•

Credit registry coverage (% of adults)

Number of individuals and firms listed in credit registry as a

percentage of adult population

•

Case study assumptions

assesses the sharing of credit information and the legal rights of borrowers and

lenders with respect to secured transactions through 2 sets of indicators. The depth of credit

information index measures rules and practices affecting the coverage, scope and accessibility of

credit information available through a credit registry or a credit bureau. The strength of legal rights

index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers

and lenders and thus facilitate lending. For each economy it is first determined whether a unitary

secured transactions system exists. Then two case scenarios, case A and case B, are used to

determine how a nonpossessory security interest is created, publicized and enforced according to

the law. Special emphasis is given to how the collateral registry operates (if registration of security

interests is possible). The case scenarios involve a secured borrower, company ABC, and a

secured lender, BizBank.

Doing Business

In some economies the legal framework for secured transactions will allow only case A or case B

(not both) to apply. Both cases examine the same set of legal provisions relating to the use of

movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

- ABC is a domestic limited liability company (or its legal equivalent).

- ABC has up to 50 employees.

- ABC has its headquarters and only base of operations in the economy’s largest business city. For

11 economies the data are also collected for the second largest business city.

- Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants

BizBank a nonpossessory security interest in one category of movable assets, for example, its

machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In

economies where the law does not allow nonpossessory security interests in movable property,

ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for

nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any

charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of

ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Taiwan, China

Doing Business

2020

Page 28

Getting Credit - Taiwan, China

Figure – Getting Credit in Taiwan, China – Score

Score - Getting Credit

50.0

Figure – Getting Credit in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

0 100

75.0: Hong Kong SAR, China (Rank: 37)

75.0: Malaysia (Rank: 37)

65.0: Korea, Rep. (Rank: 67)

58.0: Regional Average (East Asia & Pacific)

55.0: Japan (Rank: 94)

50.0: Taiwan, China (Rank: 104)

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the

strength of legal rights index and the depth of credit information index.

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Strength of legal rights index (0-12)

7.1

6.1

12 (5 Economies)

Depth of credit information index (0-8)

4.5

6.8

8 (53 Economies)

Credit registry coverage (% of adults)

0.0

16.6

24.4

100.0 (2 Economies)

Credit bureau coverage (% of adults)

100.0

23.8

66.7

100.0 (14 Economies)

Taiwan, China

Doing Business

2020

Page 29

Figure – Legal Rights in Taiwan, China and comparator economies

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

Index Score

5 5

7.1

Taiwan, China

Doing Business

2020

Page 30

Details – Legal Rights in Taiwan, China

Strength of legal rights index (0-12)

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents

to security interests in movable assets exist in the economy?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description

of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of

collateral?

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the

original assets?

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties;

and can the collateral agreement include a maximum amount for which the assets are encumbered?

Yes

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an

electronic database indexed by debtor's name?

Does a notice-based collateral registry exist in which all functional equivalents can be registered?

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third

party?

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law

protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell

the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?

Yes

Figure – Credit Information in Taiwan, China and comparator economies

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

Index Score

8 8

4.5

Taiwan, China

Doing Business

2020

Page 31

Details – Credit Information in Taiwan, China

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult

population, the total score on the depth of credit information index is 0.

Depth of credit information index (0-8)

Credit bureau

Credit registry

Score

Are data on both firms and individuals distributed?

Yes

Are both positive and negative credit data distributed?

Yes

Are data from retailers or utility companies - in addition to data from banks and

financial institutions - distributed?

Yes

Are at least 2 years of historical data distributed? (Credit bureaus and registries

that distribute more than 10 years of negative data or erase data on defaults as

soon as they are repaid obtain a score of 0 for this component.)

Yes

Are data on loan amounts below 1% of income per capita distributed?

Yes

By law, do borrowers have the right to access their data in the credit bureau or

credit registry?

Yes

Can banks and financial institutions access borrowers’ credit information online

(for example, through an online platform, a system-to-system connection or

both)?

Yes

Are bureau or registry credit scores offered as a value-added service to help

banks and financial institutions assess the creditworthiness of borrowers?

Yes

Coverage

Credit bureau

Credit registry

Number of individuals

17,096,000

Number of firms

581,000

Total

17,677,000

Percentage of adult population

100.0

0.0

Taiwan, China

Doing Business

2020

Page 32

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,

governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed

in May 2019.

See the methodology for more information

What the indicators measure

: Disclosure, review, and

approval requirements for related-party transactions

•

Extent of disclosure index (0–10)

: Ability of minority

shareholders to sue and hold interested directors liable for

prejudicial related-party transactions; Available legal

remedies (damages, disgorgement of profits, disqualification

from managerial position(s) for one year or more, rescission of

the transaction)

•

Extent of director liability index (0–10)

: Access to internal

corporate documents; Evidence obtainable during trial and

allocation of legal expenses

•

Ease of shareholder suits index (0–10)

Sum of

the extent of disclosure, extent of director liability and ease of

shareholder suits indices

•

Extent of conflict of interest regulation index (0-30):

: Shareholders’ rights

and role in major corporate decisions

•

Extent of shareholder rights index (0-6)

: Governance

safeguards protecting shareholders from undue board control

and entrenchment

•

Extent of ownership and control index (0-7)

: Corporate

transparency on ownership stakes, compensation, audits and

financial prospects

•

Extent of corporate transparency index (0-7)

: Sum

of the

extent of shareholders rights, extent of ownership and control

and extent of corporate transparency indices

•

Extent of shareholder governance index (0–20)

: Sum

of the extent of conflict of interest regulation and extent of

shareholder governance indices

•

Strength of minority investor protection index (0–50)

Case study assumptions

To make the data comparable across economies, a case study uses several assumptions about

the business and the transaction.

- Is a publicly traded corporation listed on the economy’s most important stock exchange.

- Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of

Buyer where permitted, even if this is not speciﬁcally required by law.

- Has a supervisory board in economies with a two-tier board system on which Mr. James

appointed 60% of the shareholder-elected members.

- Has not adopted bylaws or articles of association that go beyond the minimum requirements.

Does not follow codes, principles, recommendations or guidelines that are not mandatory.

- Is a manufacturing company with its own distribution network.

The business (Buyer):

- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to

Buyer’s ﬁve-member board.

- Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.

Seller recently closed a large number of its stores.

- Mr. James proposes that Buyer purchase Seller’s unused ﬂeet of trucks to expand Buyer’s

distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of

Buyer’s assets and is higher than the market value.

- The proposed transaction is part of the company’s principal activity and is not outside the

authority of the company.

- Buyer enters into the transaction. All required approvals are obtained, and all required disclosures

made—that is, the transaction was not entered into fraudulently.

- The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and

directors that approved the transaction.

The transaction involves the following details:

Taiwan, China

Doing Business

2020

Page 33

Protecting Minority Investors - Taiwan, China

Figure – Protecting Minority in Taiwan, China – Score

Score - Protecting Minority Investors

76.0

Figure – Protecting Minority Investors in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

0 100

88.0: Malaysia (Rank: 2)

84.0: Hong Kong SAR, China (Rank: 7)

76.0: Taiwan, China (Rank: 21)

74.0: Korea, Rep. (Rank: 25)

64.0: Japan (Rank: 57)

49.7: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are

the simple average of the scores for the extent of conﬂict of interest regulation index and the extent of shareholder governance index.

Stock exchange information

Stock exchange

Taiwan Stock Exchange

Stock exchange URL

http://www.twse.com.tw

Listed firms with equity securities

761

City Covered

Taipei

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Extent of disclosure index (0-10)

9.0

5.9

6.5

10 (13 Economies)

Extent of director liability index (0-10)

5.0

5.2

5.3

10 (3 Economies)

Ease of shareholder suits index (0-10)

7.0

6.7

7.3

10 (Djibouti)

Extent of shareholder rights index (0-6)

4.0

2.0

4.7

6 (19 Economies)

Extent of ownership and control index (0-7)

6.0

2.4

4.5

7 (9 Economies)

Extent of corporate transparency index (0-7)

7.0

2.6

5.7

7 (13 Economies)

Taiwan, China

Doing Business

2020

Page 34

Figure – Protecting Minority Investors in Taiwan, China and comparator economies – Measure of Quality

Taiwan (China)

Hong Kong SAR, China

Japan

Korea, Rep.

Malaysia

OECD high income

East Asia & Pacific

0 5 10 15 20 25 30 35 40 45 50

Sub-Indicator Score

7 5 9 6 4 7

5 8 10 5 5 9

5 6 7 2 4 8

6 6 8 5 4 8

6 9 10 6 5 8

5.6 5.6 6.6 4.3 4.5 7.4

3.1 5.1 6.4 2.9 2.4 6.3

Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)

Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)

Taiwan, China

Doing Business

2020

Page 35

Details – Protecting Minority Investors in Taiwan, China – Measure of Quality

Answer

Score

Extent of conflict of interest regulation index (0-30)

Extent of disclosure index (0-10)

9.0

Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)

Board of directors

excluding interested

members

2.0

Must an external body review the terms of the transaction before it takes place? (0-1)

Yes

1.0

Must Mr. James disclose his conflict of interest to the board of directors? (0-2)

Full disclosure of all

material facts

2.0

Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)

Disclosure on the

transaction and on

the conflict of interest

2.0

Must Buyer immediately disclose the transaction to the public? (0-2)

Disclosure on the

transaction and on

the conflict of interest

2.0

Extent of director liability index (0-10)

5.0

Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to

Buyer? (0-1)

Yes

1.0

Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)

Liable if negligent

1.0

Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)

Liable if negligent

1.0

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)

Yes

1.0

Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)

0.0

Is Mr. James disqualified upon a successful claim by shareholders? (0-1)

Yes

1.0

Can a court void the transaction upon a successful claim by shareholders? (0-2)

Only in case of fraud

or bad faith

0.0

Ease of shareholder suits index (0-10)

7.0

Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents?

(0-1)

Yes

1.0

Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)

Any relevant

document

3.0

Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)

0.0

Can the plaintiff directly question the defendant and witnesses at trial? (0-2)

Preapproved

questions only

1.0

Is the level of proof required for civil suits lower than that of criminal cases? (0-1)

Yes

1.0

Can shareholder plaintiffs recover their legal expenses from the company? (0-2)

Yes if successful

1.0

Extent of shareholder governance index (0-20)

Extent of shareholder rights index (0-6)

4.0

Does the sale of 51% of Buyer's assets require shareholder approval?

Yes

1.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?

Yes

1.0

Must Buyer obtain its shareholders’ approval every time it issues new shares?

0.0

Do shareholders automatically receive preemption rights every time Buyer issues new shares?

Yes

1.0

Do shareholders elect and dismiss the external auditor?

0.0

Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?

Yes

1.0

Extent of ownership and control index (0-7)

6.0

Taiwan, China

Doing Business

2020

Page 36

Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?

0.0

Must the board of directors include independent and nonexecutive board members?

Yes

1.0

Can shareholders remove members of the board of directors without cause before the end of their term?

Yes

1.0

Must the board of directors include a separate audit committee exclusively comprising board members?

Yes

1.0

Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?

Yes

1.0

Must Buyer pay declared dividends within a maximum period set by law?

Yes

1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company?

Yes

1.0

Extent of corporate transparency index (0-7)

7.0

Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?

Yes

1.0

Must Buyer disclose information about board members’ primary employment and directorships in other

companies?

Yes

1.0

Must Buyer disclose the compensation of individual managers?

Yes

1.0

Must a detailed notice of general meeting be sent 21 days before the meeting?

Yes

1.0

Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?

Yes

1.0

Must Buyer's annual financial statements be audited by an external auditor?

Yes

1.0

Must Buyer disclose its audit reports to the public?

Yes

1.0

Taiwan, China

Doing Business

2020

Page 37

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of

paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was

completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018).

See

the

methodology

for

information

What the indicators measure

Tax payments for a manufacturing company in 2018 (number

per year adjusted for electronic and joint filing and payment)

Total number of taxes and contributions paid or withheld,

including consumption taxes (value added tax, sales tax or

goods and service tax)

•

Method and frequency of filing and payment

•

Time required to comply with 3 major taxes (hours per year)

Collecting information, computing tax payable

•

Preparing separate tax accounting books, if required

•

Completing tax return, filing with agencies

•

Arranging payment or withholding

•

Total tax and contribution rate (% of commercial profits)

Profit or corporate income tax

•

Social contributions, labor taxes paid by employer

•

Property and property transfer taxes

•

Dividend, capital gains, financial transactions taxes

•

Waste collection, vehicle, road and other taxes

•

Postfiling Index

Time to comply with VAT refund (hours)

•

Time to obtain VAT refund (weeks)

•

Time to comply with a corporate income tax correction (hours)

•

Time to complete a corporate income tax correction (weeks)

•

Case study assumptions

Using a case scenario,

records taxes and mandatory contributions a medium size

company must pay in a year, and measures the administrative burden of paying taxes,

contributions and dealing with postfiling processes. Information is also compiled on frequency of

filing and payments, time taken to comply with tax laws, time taken to comply with the

requirements of postfiling processes and time waiting.

Doing Business

To make data comparable across economies, several assumptions are used:

- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces

ceramic flowerpots and sells them at retail.

Taxes and mandatory contributions are measured

at all levels of government.

- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times

income per capita of the economy. Sales are equally spread per month (1,050 times income per

capita divided by 12) and cost of goods sold are equally expensed per month (875 times income

per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred

in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,

sales and the machine and the tax reporting period is every month. Input VAT will exceed Output

VAT in June 2018.

All taxes and contributions recorded are paid in the

second year of operation (calendar year 2018).

The VAT refund process:

- An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,

or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a

corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the

tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax

liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual

tax return, but within the tax assessment period.

The corporate income tax audit process:

Taiwan, China

Doing Business

2020

Page 38

Paying Taxes - Taiwan, China

Figure – Paying Taxes in Taiwan, China – Score

Payments

86.7

Time

73.4

Total tax and contribution rate

84.9

Postfiling index

92.2

Figure – Paying Taxes in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

0 100

99.7: Hong Kong SAR, China (Rank: 2)

87.4: Korea, Rep. (Rank: 21)

84.3: Taiwan, China (Rank: 39)

81.6: Japan (Rank: 51)

76.0: Malaysia (Rank: 80)

73.6: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for

each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The

threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing

Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Payments (number per year)

20.6

10.3

3 (2 Economies)

Time (hours per year)

221

173.0

158.8

49 (3 Economies)

Total tax and contribution rate (% of profit)

36.8

33.6

39.9

26.1 (33 Economies)

Postfiling index (0-100)

92.2

56.4

86.7

None in 2018/19

Taiwan, China

Doing Business

2020

Page 39

Figure – Paying Taxes in Taiwan, China and comparator economies – Measure of Quality

Taiwan,

China

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia East

Asia

Pacific

100

120

Index score

92.2

98.9

95.2

93.9

51.0

56.4

Taiwan, China

Doing Business

2020

Page 40

Details – Paying Taxes in Taiwan, China

Tax or

mandatory

contribution

Payments

(number)

Notes on

Payments

Time (hours)

Statutory tax

rate

Tax base

Total tax and

contribution

rate (% of

profit)

Notes on TTCR

Corporate

income tax

1.0

online

161.0

20%

taxable profit

14.67

Employer paid -

Pension

contributions

1.0

online

0.06

gross salaries

6.93

Employer paid -

Labor insurance

contributions

1.0

online

27.0

various rates

gross salaries

6.55

Employer paid -

Mandatory health

insurance

contributions

1.0

online

various rates

gross salaries

5.23

Taipei City house

tax

1.0

0.03

assessed

building value

2.87

Taipei City land

value tax

1.0

1-5.5%

assessed land

value

0.51

Tax on interest

0.0

0.1

interest income

0.26

not included

Vehicle license

tax

1.0

online

TWD 11,700

fixed fee

0.03

Value added tax

(VAT)

1.0

online

33.0

0.05

value added

0.00

not included

Employee paid -

Labor insurance

contributions

0.0

online and jointly

various rates

gross salaries

0.00

withheld

Employee paid -

Mandatory health

insurance

contributions

0.0

online and jointly

various rates

gross salaries

0.00

withheld

Fuel tax

1.0

online

various rates

engine size

0.00

small amount

Land value

increment tax

1.0

various rates

gain

0.00

small amount

Stamp duty on

contracts

1.0

0.001

transaction value

0.00

small amount

Totals

221

36.8

Taiwan, China

Doing Business

2020

Page 41

Details – Paying Taxes in Taiwan, China – Tax by Type

Taxes by type

Answer

Profit tax (% of profit)

14.7

Labor tax and contributions (% of profit)

18.7

Other taxes (% of profit)

3.4

Taiwan, China

Doing Business

2020

Page 42

Details – Paying Taxes in Taiwan, China – Measure of Quality

Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction

and time to complete a corporate income tax correction.

N/A = Not applicable.

Notes:

Answer

Score

Postfiling index (0-100)

92.2

VAT refunds

Does VAT exist?

Yes

Does a VAT refund process exist per the case study?

Yes

Restrictions on VAT refund process

None

Percentage of cases exposed to a VAT audit (%)

0% - 24%

Is there a mandatory carry forward period?

Time to comply with VAT refund (hours)

3.0

94.0

Time to obtain VAT refund (weeks)

11.0

84.0

Corporate income tax audits

Does corporate income tax exist?

Yes

Percentage of cases exposed to a corporate income tax audit (%)

0% - 24%

Time to comply with a corporate income tax correction (hours)

6.5

90.8

Time to complete a corporate income tax correction (weeks)

No tax audit per case

study scenario

100

Taiwan, China

Doing Business

2020

Page 43

Trading across Borders

records

the

time

and

cost

associated

with

the

logistical

process

exporting

and

importing

goods.

measures

the

time

and

cost

(excluding

tariffs)

associated

with

three

sets

procedures—documentary

compliance,

border

compliance

and

domestic

transport—within

the

overall

process

exporting

importing

shipment

goods.

The

most

recent

round

data

collection

for

the

project

was

completed

May

2019.

Doing Business Doing Business

See

the

methodology

for

information

What the indicators measure

Documentary compliance

Obtaining, preparing and submitting documents during

transport, clearance, inspections and port or border handling in

origin economy

•

Obtaining, preparing and submitting documents required by

destination economy and any transit economies

•

Covers all documents required by law and in practice, including

electronic submissions of information

•

Border compliance

Customs clearance and inspections

•

Inspections by other agencies (if applied to more than 20% of

shipments)

•

Handling and inspections that take place at the economy’s port

or border

•

Domestic transport

Loading or unloading of the shipment at the warehouse or

port/border

•

Transport between warehouse and port/border

•

Traffic delays and road police checks while shipment is en

route

•

Case study assumptions

To make the data comparable across economies, a few assumptions are made about the traded

goods and the transactions:

Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as

22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,

suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and

can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as

24 hours because the actual procedure took 24 hours.

Time:

Insurance cost and informal payments for which no receipt is issued are excluded from the

costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency

into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.

Contributors are private sector experts in international trade logistics and are informed about

exchange rates.

Cost:

- For all 190 economies covered by

, it is assumed a shipment is in a warehouse in

the largest business city of the exporting economy and travels to a warehouse in the largest

business city of the importing economy.

- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from

its natural import partner—the economy from which it imports the largest value (price times

quantity) of auto parts. It is assumed each economy exports the product of its comparative

advantage (defined by the largest export value) to its natural export partner—the economy that is

the largest purchaser of this product. Shipment value is assumed to be $50,000.

- The mode of transport is the one most widely used for the chosen export or import product and

the trading partner, as is the seaport or land border crossing.

- All electronic information submissions requested by any government agency in connection with

the shipment are considered to be documents obtained, prepared and submitted during the export

or import process.

- A port or border is a place (seaport or land border crossing) where merchandise can enter or

leave an economy.

- Relevant government agencies include customs, port authorities, road police, border guards,

standardization agencies, ministries or departments of agriculture or industry, national security

agencies and any other government authorities.

Assumptions of the case study:

Doing Business

Taiwan, China

Doing Business

2020

Page 44

Trading across Borders - Taiwan, China

Figure – Trading across Borders in Taiwan, China – Score

Time

export:

Border

compliance

90.0

Cost

export:

Border

compliance

68.4

Time

export:

Documentary

compliance

97.6

Cost

export:

Documentary

compliance

79.0

Time

import:

Border

compliance

83.4

Cost

import:

Border

compliance

71.6

Time

import:

Documentary

compliance

98.7

Cost

import:

Documentary

compliance

90.7

Figure – Trading across Borders in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

0 100

95.0: Hong Kong SAR, China (Rank: 29)

92.5: Korea, Rep. (Rank: 36)

88.5: Malaysia (Rank: 49)

85.9: Japan (Rank: 57)

84.9: Taiwan, China (Rank: 61)

71.6: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple

average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Time to export: Border compliance (hours)

57.5

12.7

1 (19 Economies)

Cost to export: Border compliance (USD)

335

381.1

136.8

0 (19 Economies)

Time to export: Documentary compliance (hours)

55.6

2.3

1 (26 Economies)

Cost to export: Documentary compliance (USD)

109.4

33.4

0 (20 Economies)

Time to import: Border compliance (hours)

68.4

8.5

1 (25 Economies)

Cost to import: Border compliance (USD)

340

422.8

98.1

0 (28 Economies)

Time to import: Documentary compliance (hours)

53.7

3.4

1 (30 Economies)

Cost to import: Documentary compliance (USD)

108.4

23.5

0 (30 Economies)

Taiwan, China

Doing Business

2020

Page 45

Figure – Trading across Borders in Taiwan, China – Time and Cost

Export

Border

Compliance

Export

Documentary

Compliance

Import

Border

Compliance

Import

Documentary

Compliance

Time (hours)

100

150

200

250

300

350

400

Cost (USD)

335

340

Time (hours) Cost (USD)

Taiwan, China

Doing Business

2020

Page 46

Details – Trading across Borders in Taiwan, China

Characteristics

Export

Import

Product

HS 85 : Electrical machinery and equipment and

parts thereof; sound recorders and reproducers,

television image and sound recorders and

reproducers, and parts and accessories of such

articles

HS 8708: Parts and accessories of motor vehicles

Trade partner

China

Germany

Border

Kaohsiung port

Distance (km)

376

Domestic transport time (hours)

Domestic transport cost (USD)

300

Details – Trading across Borders in Taiwan, China – Components of Border Compliance

Time to Complete (hours)

Associated Costs (USD)

Export: Clearance and inspections required by

customs authorities

4.2

147.7

Export: Clearance and inspections required by

agencies other than customs

0.0

Export: Port or border handling

12.6

187.7

Import: Clearance and inspections required by

customs authorities

34.5

155.4

Import: Clearance and inspections required by

agencies other than customs

0.0

Import: Port or border handling

12.9

185.0

Taiwan, China

Doing Business

2020

Page 47

Details – Trading across Borders in Taiwan, China – Trade Documents

Export

Import

Commercial invoice

Bill of lading

Packing list

Commercial invoice

Bill of lading

Packing list

Certificate of origin

Customs Import Declaration

Customs Export Declaration

SOLAS certificate

Taiwan, China

Doing Business

2020

Page 48

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes

index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data

collection was completed in May 2019.

See the methodology for more information

What the indicators measure

Time required to enforce a contract through the courts

(calendar days)

Time to file and serve the case

•

Time for trial and to obtain the judgment

•

Time to enforce the judgment

•

Cost required to enforce a contract through the courts (% of

claim value)

Average attorney fees

•

Court costs

•

Enforcement costs

•

Quality of judicial processes index (0-18)

Court structure and proceedings (-1-5)

•

Case management (0-6)

•

Court automation (0-4)

•

Alternative dispute resolution (0-3)

•

Case study assumptions

The dispute in the case study involves the breach of a sales contract between two domestic

businesses. The case study assumes that the court hears an expert on the quality of the goods in

dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the

case are used:

- The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both

located in the economy’s largest business city. For 11 economies the data are also collected for the

second largest business city.

- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of

adequate quality.

- The value of the dispute is 200% of the income per capita or the equivalent in local currency of

USD 5,000, whichever is greater.

- The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of

income per capita or $5,000 whichever is greater.

- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the

claim.

- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods

was not adequate.

- The judge decides in favor of the seller; there is no appeal.

- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Taiwan, China

Doing Business

2020

Page 49

Enforcing Contracts - Taiwan, China

Figure – Enforcing Contracts in Taiwan, China – Score

Time

68.0

Cost

79.5

Quality of judicial processes index

77.8

Figure – Enforcing Contracts in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

0 100

84.1: Korea, Rep. (Rank: 2)

75.1: Taiwan, China (Rank: 11)

69.1: Hong Kong SAR, China (Rank: 31)

68.2: Malaysia (Rank: 35)

65.3: Japan (Rank: 50)

53.0: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of

the scores for each of the component indicators.

Standardized Case

Claim value

TWD 1,521,026

Court name

Taipei District Court

City Covered

Taipei

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Time (days)

510

581.1

589.6

120 (Singapore)

Cost (% of claim value)

18.3

47.2

21.5

0.1 (Bhutan)

Quality of judicial processes index (0-18)

14.0

8.1

11.7

None in 2018/19

Taiwan, China

Doing Business

2020

Page 50

Figure – Enforcing Contracts in Taiwan, China – Time and Cost

East

Asia

Pacific

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia OECD

high

income

Taiwan,

China

100

200

300

400

500

600

700

Time (days)

Cost (% of claim value)

581.1

47.2

385

23.6

360

23.4

290

12.7

425

37.9

589.6

21.5

510

18.3

Time (days) Cost (% of claim value)

Taiwan, China

Doing Business

2020

Page 51

Figure – Enforcing Contracts in Taiwan, China and comparator economies – Measure of Quality

Taiwan (China)

Hong Kong SAR, China

Japan

Korea, Rep.

Malaysia

OECD high income

East Asia & Pacific

0 2 4 6 8 10 12 14 16

Sub-Indicator Score

3 4.5 3 3.5

2.5 2 1 4.5

2.5 1 1 3

3 4 4 3.5

2.5 4 2.5 4

2.5 3.2 2.4 3.6

2.2 2.2 1.3 3

Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)

Details – Enforcing Contracts in Taiwan, China

Indicator

Time (days)

510

Filing and service

Trial and judgment

360

Enforcement of judgment

120

Cost (% of claim value)

18.3

Attorney fees

15.5

Court fees

2.6

Enforcement fees

0.2

Quality of judicial processes index (0-18)

14.0

Court structure and proceedings (-1-5)

3.5

Case management (0-6)

4.5

Court automation (0-4)

3.0

Alternative dispute resolution (0-3)

3.0

Taiwan, China

Doing Business

2020

Page 52

Details – Enforcing Contracts in Taiwan, China – Measure of Quality

Answer

Score

Quality of judicial processes index (0-18)

14.0

Court structure and proceedings (-1-5)

3.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases?

0.0

2. Small claims court

1.5

2.a. Is there a small claims court or a fast-track procedure for small claims?

Yes

2.b. If yes, is self-representation allowed?

Yes

3. Is pretrial attachment available?

Yes

1.0

4. Are new cases assigned randomly to judges?

Yes, automatic

1.0

5. Does a woman's testimony carry the same evidentiary weight in court as a man's?

Yes

0.0

Case management (0-6)

4.5

1. Time standards

0.0

1.a. Are there laws setting overall time standards for key court events in a civil case?

Yes

1.b. If yes, are the time standards set for at least three court events?

1.c. Are these time standards respected in more than 50% of cases?

Yes

2. Adjournments

0.5

2.a. Does the law regulate the maximum number of adjournments that can be granted?

2.b. Are adjournments limited to unforeseen and exceptional circumstances?

Yes

2.c. If rules on adjournments exist, are they respected in more than 50% of cases?

Yes

3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii)

clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?

Yes

1.0

4. Is a pretrial conference among the case management techniques used before the competent court?

Yes

1.0

5. Are there any electronic case management tools in place within the competent court for use by judges?

Yes

1.0

6. Are there any electronic case management tools in place within the competent court for use by lawyers?

Yes

1.0

Court automation (0-4)

3.0

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?

Yes

1.0

2. Is it possible to carry out service of process electronically for claims filed before the competent court?

0.0

3. Can court fees be paid electronically within the competent court?

Yes

1.0

4. Publication of judgments

1.0

4.a Are judgments rendered in commercial cases at all levels made available to the general public

through publication in official gazettes, in newspapers or on the internet or court website?

Yes

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made

available to the general public through publication in official gazettes, in newspapers or on the internet

or court website?

Yes

Alternative dispute resolution (0-3)

3.0

1. Arbitration

1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or

section of the applicable code of civil procedure encompassing substantially all its aspects?

Yes

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—

that cannot be submitted to arbitration?

1.c. Are valid arbitration clauses or agreements usually enforced by the courts?

Yes

Taiwan, China

Doing Business

2020

Page 53

2. Mediation/Conciliation

1.5

2.a. Is voluntary mediation or conciliation available?

Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or

section of the applicable code of civil procedure encompassing substantially all their aspects (for

example, definition, aim and scope of application, desig

Yes

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or

conciliation is successful, a refund of court filing fees, income tax credits or the like)?

Yes

Taiwan, China

Doing Business

2020

Page 54

Resolving Insolvency

studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,

which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.

To determine the present value of the amount recovered by creditors,

uses the lending rates from the International Monetary Fund, supplemented with

data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019.

Doing Business

See the methodology for more

information

What the indicators measure

Time required to recover debt (years)

Measured in calendar years

•

Appeals and requests for extension are included

•

Cost required to recover debt (% of debtor’s estate)

Measured as percentage of estate value

•

Court fees

•

Fees of insolvency administrators

•

Lawyers’ fees

•

Assessors’ and auctioneers’ fees

•

Other related fees

•

Outcome

Whether business continues operating as a going concern or

business assets are sold piecemeal

•

Recovery rate for creditors

Measures the cents on the dollar recovered by secured

creditors

•

Outcome for the business (survival or not) determines the

maximum value that can be recovered

•

Official costs of the insolvency proceedings are deducted

•

Depreciation of furniture is taken into account

•

Present value of debt recovered

•

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:

•

Commencement of proceedings index (0-3)

•

Management of debtor’s assets index (0-6)

•

Reorganization proceedings index (0-3)

•

Creditor participation index (0-4)

•

Case study assumptions

To make the data on the time, cost and outcome comparable across economies, several

assumptions about the business and the case are used:

- A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel

experiences financial difficulties.

- The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD

200,000, whichever is greater.

- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.

The hotel cannot pay back the loan, but makes enough money to operate otherwise.

In addition,

evaluates the quality of legal framework applicable to judicial

liquidation and reorganization proceedings and the extent to which best insolvency practices have

been implemented in each economy covered.

Doing Business

Taiwan, China

Doing Business

2020

Page 55

Resolving Insolvency - Taiwan, China

Figure – Resolving Insolvency in Taiwan, China – Score

Recovery rate

88.5

Strength of insolvency framework index

65.6

Figure – Resolving Insolvency in Taiwan, China and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

0 100

90.2: Japan (Rank: 3)

82.9: Korea, Rep. (Rank: 11)

77.1: Taiwan, China (Rank: 23)

67.0: Malaysia (Rank: 40)

65.7: Hong Kong SAR, China (Rank: 45)

40.9: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average

of the scores for the recovery rate and the strength of insolvency framework index.

Indicator

Taiwan, China

East Asia &

Pacific

OECD high

income

Best Regulatory

Performance

Recovery rate (cents on the dollar)

82.2

35.5

70.2

92.9 (Norway)

Time (years)

1.9

2.6

1.7

0.4 (Ireland)

Cost (% of estate)

4.0

20.6

9.3

1.0 (Norway)

Outcome (0 as piecemeal sale and 1 as going concern)

Strength of insolvency framework index (0-16)

10.5

7.0

11.9

None in 2018/19

Taiwan, China

Doing Business

2020

Page 56

Figure – Resolving Insolvency in Taiwan, China – Time and Cost

East

Asia

Pacific

Hong

Kong

SAR,

China

Japan Korea,

Rep.

Malaysia OECD

high

income

Taiwan,

China

0.5

1.5

2.5

Time (years)

Cost (% of estate)

2.6

20.6

0.8

5.0 0.6

4.2

1.5

3.5

1.0

10.0

1.7

9.3

1.9

4.0

Time (years) Cost (% of estate)

Taiwan, China

Doing Business

2020

Page 57

Figure – Resolving Insolvency in Taiwan, China and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the

strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Taiwan (China)

Hong Kong SAR, China

Japan

Korea, Rep.

Malaysia

OECD high income

East Asia & Pacific

0 2 4 6 8 10 12 14

Sub-Indicator Score

5.5 2.5 2 0.5

3 2 1 0

6 3 1 3

5.5 2.5 1 3

2 3 2 0.5

5.3 2.8 2.1 1.9

3.7 2.3 1.3 1

Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)

Figure – Resolving Insolvency in Taiwan, China and comparator economies – Recovery Rate

Taiwan, China Hong Kong SAR, China Japan Korea, Rep. Malaysia East Asia & Pacific

100

Recovery rate(cents on the dollar)

82.2

87.2

92.1

84.3

81.0

35.5

Taiwan, China

Doing Business

2020

Page 58

Details – Resolving Insolvency in Taiwan, China

Indicator

Answer

Score

Proceeding

reorganization

Mirage management will initiate reorganization as this would be consistent with the management's intent to keep the

business operating and would also maximize the value of the assets from the perspective of BizBank.

Outcome

going concern

The hotel will continue operating as a going concern after the reorganization plan is approved by creditors.

Time (in years)

1.9

The reorganization proceeding until the reorganization plan is approved by creditors takes approximate 1.9 years. After

Mirage's filing for reorganization with the Taipei District Court, the Court will review the materials, accept Mirage's case

for consideration and appoint an administrator usually in half a year. The insolvency administrator is responsible for

finalizing creditors' claims and holding the creditors' meeting, which will take about 2 additional months. In the

meantime, Mirage's management would prepare the reorganization plan and in practice it takes about 1 year to get the

reorganization plan approved.

Cost (% of estate)

4.0

The costs associated with the case would amount to approximately 4% of the value of the debtor's estate. The cost

incurred during the entire insolvency process mainly includes attorney fees (1.5%), insolvency representative fees

(1%), fees of accountants, assessors, inspectors and other professionals (1.5%) and other fees (up to 0,5%).

Recovery rate

(cents on the dollar)

82.2

Taiwan, China

Doing Business

2020

Page 59

Details – Resolving Insolvency in Taiwan, China – Measure of Quality

Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the

strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Note:

Answer

Score

Strength of insolvency framework index (0-16)

10.5

Commencement of proceedings index (0-3)

2.5

What procedures are available to a DEBTOR when commencing insolvency proceedings?

(a) Debtor may file for

both liquidation and

reorganization

1.0

Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?

(b) Yes, but a creditor

may file for liquidation

only

0.5

What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a)

Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value

of its assets

options are available,

but only one of them

needs to be complied

with

1.0

Management of debtor's assets index (0-6)

5.5

Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the

debtor?

Yes

1.0

Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?

Yes

1.0

Does the insolvency framework allow avoidance of preferential transactions?

Yes

1.0

Does the insolvency framework allow avoidance of undervalued transactions?

Yes

1.0

Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of

insolvency proceedings?

Yes

1.0

Does the insolvency framework assign priority to post-commencement credit?

(a) Yes over all pre-

commencement

creditors, secured or

unsecured

0.5

Reorganization proceedings index (0-3)

0.5

Which creditors vote on the proposed reorganization plan?

(a) All creditors

0.5

Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as

what they would obtain in a liquidation?

0.0

Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote

separately and are creditors in the same class treated equally?

0.0

Creditor participation index (0-4)

2.0

Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency

representative?

0.0

Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?

0.0

Does the insolvency framework provide that a creditor has the right to request information from the insolvency

representative?

Yes

1.0

Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting

creditors' claims?

Yes

1.0

Taiwan, China

Doing Business

2020

Page 60

Employing Workers

presents detailed data for the employing workers indicators on the

website (

). The study does not present

rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

Doing Business Doing Business

http://www.doingbusiness.org

The most recent round of data collection was completed in May 2019.

See the methodology for more information

What the indicators measure

(i) whether fixed-term contracts are prohibited for permanent

tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum

wage;(v) ratio of minimum wage to the average value added per

worker.

Hiring

(i) maximum number of working days allowed per week; (ii)

premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a

weekly rest day and for overtime work; (iv) length of paid annual

leave.

Working hours

(i) whether redundancy can be basis for terminating workers; (ii)

whether employer needs to notify and/or get approval from third

party to terminate 1 redundant worker and a group of 9 redundant

workers; (iii) whether the law requires employer to reassign or

retrain a worker before making worker redundant; (iv) whether

priority rules apply for redundancies and reemployment.

Redundancy rules

(i) notice period for redundancy dismissal; (ii) severance

payments, and (iii) penalties due when terminating a redundant

worker. Data on the availability of unemployment protection for a

worker with one year of employment is also collected.

Redundancy cost

Case study assumptions

To make the data comparable across economies, several assumptions about the worker and the

business are used.

- Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.

- Is a full-time employee.

- Is not a member of the labor union, unless membership is mandatory.

The worker:

- Is a limited liability company (or the equivalent in the economy).

- Operates a supermarket or grocery store in the economy’s largest business city. For 11

economies the data are also collected for the second largest business city.

- Has 60 employees.

- Is subject to collective bargaining agreements if such agreements cover more than 50% of the

food retail sector and they apply even to firms that are not party to them.

- Abides by every law and regulation but does not grant workers more benefits than those

mandated by law, regulation or (if applicable) collective bargaining agreements.

The business:

Taiwan, China

Doing Business

2020

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Employing Workers - Taiwan, China

Details – Employing Workers in Taiwan, China

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks?

Yes

Maximum length of a single fixed-term contract (months)

No limit

Maximum length of fixed-term contracts, including renewals (months)

No limit

Minimum wage applicable to the worker assumed in the case study (US$/month)

744.0

Ratio of minimum wage to value added per worker

0.3

Maximum length of probationary period (months)

n.a.

Working hours

Standard workday

8.0

Maximum number of working days per week

6.0

Premium for night work (% of hourly pay)

0.0

Premium for work on weekly rest day (% of hourly pay)

100.0

Premium for overtime work (% of hourly pay)

33.0

Restrictions on night work?

Restrictions on weekly holiday?

Restrictions on overtime work?

Paid annual leave for a worker with 1 year of tenure (working days)

7.0

Paid annual leave for a worker with 5 years of tenure (working days)

15.0

Paid annual leave for a worker with 10 years of tenure (working days)

16.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days)

12.7

Redundancy rules

Dismissal due to redundancy allowed by law?

Yes

Third-party notification if one worker is dismissed?

Yes

Third-party approval if one worker is dismissed?

Third-party notification if nine workers are dismissed?

Yes

Third-party approval if nine workers are dismissed?

Retraining or reassignment obligation before redundancy?

Yes

Priority rules for redundancies?

Priority rules for reemployment?

Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)

2.9

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)

4.3

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)

4.3

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)

3.8

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)

2.2

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)

10.8

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Doing Business

2020

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Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)

21.7

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)

11.6

Unemployment protection after one year of employment?

Yes

Taiwan, China

Doing Business

2020

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Business Reforms in

Taiwan, China

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

have been implemented by economies in all regions. The following are reforms implemented since

2008.

Doing Business Doing Business

DB2020

Paying Taxes:

Taiwan, China, made paying taxes costlier by increasing the corporate income tax rate.

DB2019

Dealing with Construction Permits:

Taiwan, China made dealing with construction permits less time-consuming by improving the efficiency of its a single window

counter in the Taipei City Construction Management Office.

Protecting Minority Investors:

Taiwan, China, strengthened minority investor protections by enhancing ownership and control structures in listed companies.

DB2018

Trading across Borders:

Taiwan, China made exporting easier by allowing different organizations to electronically issue certificates of origin.

Enforcing Contracts:

Taiwan, China, made enforcing contracts easier by introducing an electronic filing system.

Employing Workers:

Taiwan, China, adopted legislation that increased the number of mandatory paid annual leave days and the number of weekly rest days.

DB2016

Getting Electricity:

The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified procedure for obtaining excavation

permits from the municipality.

DB2015

Getting Electricity:

Taiwan, China, made getting electricity easier by eliminating site inspections.

Getting Credit:

Taiwan, China, improved access to credit information by beginning to include data from utility companies in credit reports.

Paying Taxes:

Taiwan, China, made paying taxes easier for companies by introducing an electronic system for paying the vehicle license tax.

DB2013

Dealing with Construction Permits:

Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection system

and improving operational features of the one-stop shop for building permits.

Protecting Minority Investors:

Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party transactions and improving

the liability regime for company directors in cases where such transactions are abusive.

DB2012

Starting a Business:

Taiwan (China) made starting a business easier by implementing an online one-stop shop for business registration.

Dealing with Construction Permits:

Taiwan (China) made dealing with construction permits easier by creating a one-stop center.

DB2011

Starting a Business:

Taiwan (China) eased business start-up by reducing the time required to check company names, register retirement plans and apply for health,

pension and labor insurance.

Paying Taxes:

Taiwan (China) reduced the corporate income tax rate and simplified tax return forms, rules for assessing corporate income tax and the calculation of

interim tax payments.

DB2010

Starting a Business:

Taiwan, China, made starting a business easier by abolishing the minimum capital requirement and speeding up various procedures.

Paying Taxes:

Taiwan, China, made paying taxes easier for companies by extending electronic filing and payment to value added tax.

DB2009

Getting Credit:

Taiwan, China, strengthened its secured transactions system through an amendment to its civil code allowing the use of personal real estate or

property to secure a line of credit, for not more than a specified maximum amount.

reform making it easier to do business.

= Change making it more difficult to do business.

Doing Business

Taiwan, China

Doing Business

2020

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Taiwan, China

Doing Business

2020

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