Experts: Taiwanese Businesses Investing in US Should Shift Mindset, Promote Deep Localization of Investment Structure
Experts suggest that as Taiwanese businesses increasingly view US investment as a mid-to-long-term strategy, they should shift their mindset. Focusing solely on tariffs or short-term incentives may underestimate the long-term impact of legal compliance, labor, and operational structures. They recommend achieving 'deep localization' in investment structure, compliance governance, talent strategy, and local operational strategy. The lack of a Taiwan-US double taxation agreement is highlighted as a significant tax challenge.
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- 📰 Published: April 30, 2026 at 13:52
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Central News Agency
(Central News Agency reporter Lu Yen-tzu, Taipei 30th) Investing in the United States is gradually becoming a mid-to-long-term strategic direction for Taiwanese enterprises. Experts point out that Taiwanese businesses should shift their mindset before investing in the US. If enterprises only focus on tariffs or short-term incentives, they may underestimate the long-term impact brought by legal compliance, labor, and operational structures. It is recommended to achieve deep localization in investment structure, compliance governance, talent strategy, and local operational strategy.
PwC Taiwan held the '2026 Enterprise Holistic Governance – Resilience Driving Force' seminar today.
Joseph Hsu, CEO of PwC Taiwan, pointed out that enterprises are currently facing not just single risk management issues, but a new normal of operations where multiple uncertainties coexist. The core challenge of governance lies in whether decisions can be continuously calibrated in a rapidly changing environment, and whether transformation investments can be converted into long-term competitiveness.
He believes that from practical experience, 'resilience' is no longer just about ensuring uninterrupted operations, but has gradually evolved into a comprehensive capability that integrates digital governance, sustainable management, global layout, and growth strategies.
Facing the wave of Taiwanese enterprises investing in the US, Su Yu-jen, Head of US Business at PwC Taiwan, mentioned that investing in the US is not only an important option for diversifying geopolitical risks and consolidating key industry positions, but is also becoming a crucial direction for enterprises' mid-to-long-term strategic planning. However, Taiwanese businesses should shift their mindset before investing in the US and should not approach it with the same mindset used for investing in China, Southeast Asia, or India.
Su Yu-jen analyzed that if enterprises only focus on tariffs or short-term incentives, they often underestimate the long-term impact brought by legal compliance, labor, and operational structures. Only by achieving deep localization in investment structure, compliance governance, talent strategy, and local operational strategy can investment benefits truly be realized under the new Taiwan-US relationship framework after 2026.
He gave an example: Taiwan is the only country among the top 10 US trading partners that lacks a comprehensive 'Agreement for the Avoidance of Double Taxation.' The 30% dividend withholding tax alone is unbearable for many Taiwanese businesses. Compared to South Korean and Australian companies that enjoy tax treaties, the return on investment may be affected by at least 10 percentage points.
Su Yu-jen pointed out that the US House of Representatives passed a bill related to the Taiwan-US double taxation avoidance last January, showing a glimmer of hope. If it completes legislation, the current 30% tax rate is expected to be reduced to 10% to 15%. Subsequent close attention should be paid to the US Senate's review, and applicable conditions should be evaluated in advance, with necessary documents prepared, so that the structure can be quickly adjusted after the bill passes.
He also reminded that in addition to federal taxes, the 50 US states each have different tax rates and regulations. If doing business in multiple states, each state may require tax filing and payment, and some states may require combining global income, which might include profits from Taiwan.
Furthermore, many enterprises are also accelerating growth through mergers and acquisitions. Chou Jung-yu, Executive Director of PwC International Financial Advisory Co., Ltd., pointed out that M&A is only the starting point for transformation. The real test lies in whether the enterprise possesses a governance structure, internal control mechanisms, and decision-making capabilities to support cross-industry integration after the transaction is completed, further transforming strategic intentions into sustainable operational results. (Editor: Lin Chia-hsin) 1150430
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(Central News Agency reporter Lu Yen-tzu, Taipei 30th) Investing in the United States is gradually becoming a mid-to-long-term strategic direction for Taiwanese enterprises. Experts point out that Taiwanese businesses should shift their mindset before investing in the US. If enterprises only focus on tariffs or short-term incentives, they may underestimate the long-term impact brought by legal compliance, labor, and operational structures. It is recommended to achieve deep localization in investment structure, compliance governance, talent strategy, and local operational strategy.
PwC Taiwan held the '2026 Enterprise Holistic Governance – Resilience Driving Force' seminar today.
Joseph Hsu, CEO of PwC Taiwan, pointed out that enterprises are currently facing not just single risk management issues, but a new normal of operations where multiple uncertainties coexist. The core challenge of governance lies in whether decisions can be continuously calibrated in a rapidly changing environment, and whether transformation investments can be converted into long-term competitiveness.
He believes that from practical experience, 'resilience' is no longer just about ensuring uninterrupted operations, but has gradually evolved into a comprehensive capability that integrates digital governance, sustainable management, global layout, and growth strategies.
Facing the wave of Taiwanese enterprises investing in the US, Su Yu-jen, Head of US Business at PwC Taiwan, mentioned that investing in the US is not only an important option for diversifying geopolitical risks and consolidating key industry positions, but is also becoming a crucial direction for enterprises' mid-to-long-term strategic planning. However, Taiwanese businesses should shift their mindset before investing in the US and should not approach it with the same mindset used for investing in China, Southeast Asia, or India.
Su Yu-jen analyzed that if enterprises only focus on tariffs or short-term incentives, they often underestimate the long-term impact brought by legal compliance, labor, and operational structures. Only by achieving deep localization in investment structure, compliance governance, talent strategy, and local operational strategy can investment benefits truly be realized under the new Taiwan-US relationship framework after 2026.
He gave an example: Taiwan is the only country among the top 10 US trading partners that lacks a comprehensive 'Agreement for the Avoidance of Double Taxation.' The 30% dividend withholding tax alone is unbearable for many Taiwanese businesses. Compared to South Korean and Australian companies that enjoy tax treaties, the return on investment may be affected by at least 10 percentage points.
Su Yu-jen pointed out that the US House of Representatives passed a bill related to the Taiwan-US double taxation avoidance last January, showing a glimmer of hope. If it completes legislation, the current 30% tax rate is expected to be reduced to 10% to 15%. Subsequent close attention should be paid to the US Senate's review, and applicable conditions should be evaluated in advance, with necessary documents prepared, so that the structure can be quickly adjusted after the bill passes.
He also reminded that in addition to federal taxes, the 50 US states each have different tax rates and regulations. If doing business in multiple states, each state may require tax filing and payment, and some states may require combining global income, which might include profits from Taiwan.
Furthermore, many enterprises are also accelerating growth through mergers and acquisitions. Chou Jung-yu, Executive Director of PwC International Financial Advisory Co., Ltd., pointed out that M&A is only the starting point for transformation. The real test lies in whether the enterprise possesses a governance structure, internal control mechanisms, and decision-making capabilities to support cross-industry integration after the transaction is completed, further transforming strategic intentions into sustainable operational results. (Editor: Lin Chia-hsin) 1150430
Choose to stand with facts, every sponsorship is a force to protect press freedom.
Download the Central News Agency 'First-hand News' APP to stay updated with the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.