Transfer pricing in Taiwan

Transfer pricing Taiwan at a glance

Regulation Type National regulations with reference to the OECD
Are there specific transfer pricing regulations? Yes
Submission deadline Contemporaneously
Submission deadline upon request 30 days
Annual update required Yes
Official language requirements Chinese
Potential impact of penalties 200 percent of adjustments


Taiwanese tax law

Rules for transfer pricing in Taiwan are based upon:

  • Taiwan Income Tax Law Article 43-1
  • Financial Holding Company Law Article 50
  • Business Merges and Acquisitions Law Article 42
  • Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s-Length Transfer Pricing (the transfer pricing guidelines).


The tax authority recognizes the OECD Transfer Pricing Guidelines.


Accepted methods

Accepted methods are:

  • The comparable uncontrolled price method
  • the resale price method
  • the cost plus method
  • the comparable profit method
  • the profit split method
  • other arm’s length methods approved by the Ministry of Finance

Priority of methods

Rules for transfer pricing in Taiwan prescribe that the best method rule applies.

Documentation requirements

Information that should be included in the documentation:

  • Business overview
  • Organizational structure
  • Description of controlled transactions
  • Transfer pricing report, including
  • Industry and economic analysis
  • Functions and risks analysis
  • Application of the arm’s length principle
  • Selection of comparables and related information
  • Comparability analysis
  • Transfer pricing methods selected by the enterprises
  • Transfer pricing methods selected by related parties under the same control
  • Result of comparables search under the best method of transfer pricing
  • Report of affiliated enterprises under Article 369 of Taiwan Company Law
  • Any other documents that have significant influence over pricing between related parties


Rules for transfer pricing in Taiwan prescribe that documentation should be in Chinese. However, upon request, the tax authorities might accept an exception in regard to the language of the documentation. 

Requirements to prepare documentation annually 

Rules for transfer pricing in Taiwan require documentation to be prepared contemporaneously.

Submission deadline upon request by tax authorities

Upon request of the tax authorities, a taxpayer had 30 days to submit its documentation. With valid reasons, this period can be extended with additional 30 days.

Advance Pricing Agreements


Rules for transfer pricing in Taiwan provide the option to obtain an Advance Pricing Agreement (APA).


Rules for transfer pricing in Taiwan prescribe that an APA will be agreed upon for a period of 3 to 5 years. An additional extension of 5 years is sometimes provided.


Rules for transfer pricing in Taiwan prescribe that in case substantial adjustments are made by the tax authorities a penalty of up to 200 percent of underpaid taxes will be triggered.