Taiwan to USA Investment Guide
Navigate CBC declaration requirements and invest in America legally
Taiwan Capital Movement Overview
Annual Declaration Limit
Per Transaction (No Declaration)
US-Taiwan Tax
Offshore Banking
Central Bank of China (CBC) Regulations
Taiwan's Central Bank regulates foreign exchange transactions. Individual residents have generous limits compared to many Asian countries.
Individual Limits
- Annual outbound: USD 5 million
- Per transaction: USD 500,000 (no declaration)
- Over $500K: Declaration required
- Over $5M: CBC approval needed
Company Limits
- Annual outbound: USD 50 million
- Trade-related: Higher limits
- Investment: FSC approval may apply
- Documentation requirements
Declaration Process
Transferring Over USD 500,000
For transactions exceeding USD 500,000, you must file a declaration with the authorized bank.
Required Documentation
- Foreign exchange declaration form
- ID (passport or Taiwan ID)
- Purpose of remittance
- Supporting documents (contracts, invoices)
- Tax clearance for large amounts
Process Timeline
- Under $500K: Same-day processing
- $500K-$5M: 1-3 business days
- Over $5M: CBC review (1-2 weeks)
- Special cases: Longer review
FSC Approval for Investment
The Financial Supervisory Commission (FSC) may require approval for certain overseas investments, particularly for financial products.
When FSC Approval Needed
- Investment through Taiwan securities firms
- Certain regulated financial products
- Institutional investor activities
- Professional investor classification
No Approval Needed
- Personal wire transfer abroad
- Direct US brokerage account opening
- Real estate purchases
- Business investment
OBU (Offshore Banking Unit)
Taiwan OBU Accounts
Taiwan banks operate Offshore Banking Units (OBUs) that provide foreign currency services with more flexibility than domestic accounts.
OBU Benefits
- Hold multiple foreign currencies
- No CBC reporting for OBU transfers
- Interest income tax exempt
- Easier international transfers
OBU Limitations
- Non-residents or overseas use only
- Cannot use for Taiwan domestic transactions
- Minimum balance requirements
- Different from DBU (domestic)
Investing in US Securities
Opening US Brokerage Accounts
Taiwan residents can open accounts with major US brokerages to invest in US stocks directly.
US Brokerages Accepting Taiwan Residents
- Interactive Brokers
- Charles Schwab
- TD Ameritrade (now Schwab)
- Firstrade (popular with Taiwanese)
Requirements
- Valid passport
- Proof of address in Taiwan
- W-8BEN form
- Wire transfer to fund account
Through Taiwan Brokerages (Sub-brokerage)
Taiwan securities firms offer US stock trading through sub-brokerage arrangements, subject to FSC regulations.
| Method | Pros | Cons |
|---|---|---|
| Direct US Broker | Lower fees, full control | More complex setup, English interface |
| Taiwan Sub-brokerage | Chinese interface, local support | Higher fees, limited products |
Tax Considerations
No US-Taiwan Tax Treaty
There is no comprehensive tax treaty between the USA and Taiwan due to diplomatic complexities. This means standard US withholding rates apply.
| Income Type | US Withholding | Taiwan Tax |
|---|---|---|
| US Stock Dividends | 30% | Include in income (credit available) |
| US Interest | 30% (exemptions may apply) | Include in income |
| US Capital Gains | 0% (non-USRPI) | Securities gains exempt in Taiwan |
| US Rental Income | 30% gross or ECI | Include in Taiwan income |
Taiwan Tax on Foreign Income
Taiwan taxes residents on worldwide income, with a minimum taxable amount for overseas income.
Basic Minimum Tax (AMT)
- Foreign income over TWD 1 million
- Combined with domestic AMT items
- Threshold: TWD 7.5 million total
- Rate: 20% on excess
Foreign Tax Credit
- US taxes paid may be credited
- Limited to Taiwan tax on that income
- Documentation required
- Consult Taiwan tax advisor
Recommended Entity Structures
For Real Estate Investment
Direct Ownership
- US LLC in property state
- Owned directly by Taiwan individual
- Simple structure
- FIRPTA on sale (15%)
Estate Planning Consideration
- US estate tax applies to US property
- $60,000 exemption only (no treaty)
- Consider BVI or other holding company
- Complex structures have costs
For Business Operations
E-2 Visa Consideration
- Taiwan is E-2 treaty country
- Substantial investment required
- Must be active business
- Can use for living/working in USA
Corporate Structure
- Delaware C-Corp for venture
- LLC for flexibility
- Consider Taiwan parent implications
- Transfer pricing documentation
OFAC and Sanctions Compliance
Taiwan is not subject to US sanctions. Transfers from Taiwan are processed normally, subject to standard OFAC screening.