If the company is registered at my home or a relative's home, do I need a lease?

Legally, only one situation allows "free use": a sole proprietorship or partnership "business" where the property is owned by the owner, their spouse or a direct relative (by blood or marriage).

In all other cases, especially for a "company", whether registered at your own home or a relative's, free use is not allowed. If you claim free use, the tax authority can assess the landlord's rental income for tax based on local market rents.

Why we recommend a lease at NT$1,000 per month

• Tax law provides that when a responsible person, shareholder or their relatives lend property to a legal entity for business free of charge, the tax authority may impute rental income at the local going rate.
• Setting a reasonable rent yourself (for example NT$1,000 per month) is far simpler than having an officer impute one at market rates, and less likely to be adjusted.
• Although the landlord receives NT$1,000 a month, or NT$12,000 a year, after the 43% deemed expense only NT$6,840 counts as income; at a 5% bracket that is roughly NT$342 more tax per year.
• Note: the higher the landlord's personal tax bracket, the more likely the authority is to assess at the "local going rent".

If you register at your own or a relative's home, provide a photo of the latest house tax bill, the building ownership certificate or a Category 1 building transcript, and we will prepare the consent to use the premises and the lease.