ECCT SME-Centre

For branch offices, the advantage is that there is no 25% withholding tax on the repatriation of after-tax profits. The disadvantage is liability, as the main company abroad is fully liable for its branch office in Taiwan.For subsidiaries, the advantage is that the liability is restricted. The disadvantage is that there will be the withholding tax of 20% on dividends paid to the shareholder(s) abroad.