| dc.description.abstract | Thanks to the deregulation of cross-strait financial and investment laws, many Taiwanese companies have been expanding their operations in China. In addition to Taiwan’s publicly traded companies, the operations of many medium- and small-size businesses in China have exceeded of those of their parents in Taiwan. In the future, those unlisted Taiwanese companies in China must continue to invest in key resources in order to survive in the uncertain economy and fierce competition. The sources of funds will play a crucial role for the expansion of these unlisted Taiwanese companies and become a major consideration in their cost of investment.
These unlisted oversea Taiwanese companies are now preparing to reap the harvest after years of hard efforts and are trying to expand their business scale and territory in order to sustain their competitive advantage in the global market. As a result, the Taiwan Stock Exchange launched an oversea company listing program in October 2008 under the government’s guidance. The program includes numerous policies and favor treatments for attracting oversea Taiwanese companies to set their headquarters in Taiwan. A special “IPO area for foreign companies” was established for promoting the strength of Taiwan’s capital market and the IPO of foreign companies in Taiwan. It aims to promote Taiwan’s capital market among well-managed oversea companies and to help these Taiwanese companies improve their strengths and developments in order to compete in the global market.
In recent years, many reports and papers have addressed the issues of the motivation for IPO in Taiwan, the timing for IPO, the impact of IPO, IPO problems and solutions, deregulations and IPO information disclosures. The aims are discussing the advantages, disadvantages, influences and flexibility of the IPO of ovrsea Taiwanese companies in Taiwan. This paper aims to discuss the underlying problems, challenges and crucial factors for Taiwanese companies to list their shares in Taiwan following the recent corporate income tax reforms both in China and Taiwan. These companies are facing problems in the choice of IPO entity, income tax risks of restructuring their investments and stake holding structures, transfer pricing, the establishment of their internal auditing systems, and the form of their financial statements. The paper intends to indentify the problems and solutions during the discussion and research process in order to analyze topics such as the possibility of their IPO in Taiwan, the IPO approach, advantages and cost. Also, it will evaluate whether these problems could be solved and Taiwanese companies will be attracted to IPO in Taiwan or not.
| en_US |