Taiwan, China Economy Profile - Doing Business 2020

 
Taiwan, China Economy Profile - Doing Business 2020
Doing Business 2020   Taiwan, China

                                       Economy Profile
                                      Taiwan, China

                                                         Page 1
Taiwan, China Economy Profile - Doing Business 2020
Doing Business 2020                 Taiwan, China

                                                    Economy Profile of Taiwan, China
                                                     Doing Business 2020 Indicators
                                                (in order of appearance in the document)

Starting a business                      Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits        Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
                                         mechanisms in the construction permitting system

Getting electricity                      Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
                                         the transparency of tariffs

Registering property                     Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit                           Movable collateral laws and credit information systems

Protecting minority investors            Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes                             Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
                                         processes

Trading across borders                   Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts                      Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency                     Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
                                         insolvency

Employing workers                        Flexibility in employment regulation and redundancy cost

                                                                                                                                                                Page 2
Doing Business 2020                         Taiwan, China

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.

The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.

To learn more about Doing Business please visit doingbusiness.org

                                                                                                                                                                                 Page 3
Doing Business 2020                                      Taiwan, China

        Ease of Doing Business in                                                                                                                          DB RANK                      DB SCORE
                                                               Region                    East Asia & Pacific

            Taiwan, China
                                                               Income Category           High income
                                                                                                                                                               15

                                                               Population                23,588,932                                                                                        80.9

                                                               City Covered              Taipei

Rankings on Doing Business topics - Taiwan, China

                              6                       9                                                                                                                               11
       21                                                                   20                                         21                                                                                  23
                                                                                                                                            39

                                                                                                                                                               61

                                                                                              104

    Starting             Dealing                 Getting             Registering            Getting               Protecting               Paying           Trading               Enforcing             Resolving
       a                  with                  Electricity           Property              Credit                 Minority                Taxes            across                Contracts             Insolvency
    Business           Construction                                                                               Investors                                 Borders
                         Permits

Topic Scores

        94.4                   87.1                     96.3                83.9                  50.0                 76.0                  84.3              84.9                   75.1                 77.1

      Starting a Business (rank)                                                   21     Getting Credit (rank)                                     104    Trading across Borders (rank)                          61
      Score of starting a business (0-100)                                       94.4     Score of getting credit (0-100)                           50.0   Score of trading across borders (0-100)              84.9
      Procedures (number)                                                           3     Strength of legal rights index (0-12)                       2    Time to export
      Time (days)                                                                  10     Depth of credit information index (0-8)                     8    Documentary compliance (hours)                          5
      Cost (number)                                                                1.9    Credit registry coverage (% of adults)                     0.0   Border compliance (hours)                              17
      Paid-in min. capital (% of income per capita)                                0.0    Credit bureau coverage (% of adults)                   100.0     Cost to export
                                                                                                                                                           Documentary compliance (USD)                           84
      Dealing with Construction Permits (rank)                                      6     Protecting Minority Investors (rank)                       21    Border compliance (USD)                              335
      Score of dealing with construction permits (0-100)                         87.1     Score of protecting minority investors (0-100)            76.0   Time to export
      Procedures (number)                                                          10     Extent of disclosure index (0-10)                          9.0   Documentary compliance (hours)                          4
      Time (days)                                                                  82     Extent of director liability index (0-10)                  5.0   Border compliance (hours)                              47
      Cost (% of warehouse value)                                                  0.4    Ease of shareholder suits index (0-10)                     7.0   Cost to export
      Building quality control index (0-15)                                      13.0     Extent of shareholder rights index (0-6)                   4.0   Documentary compliance (USD)                           65
                                                                                          Extent of ownership and control index (0-7)                6.0   Border compliance (USD)                              340
      Getting Electricity (rank)                                                    9     Extent of corporate transparency index (0-7)               7.0
      Score of getting electricity (0-100)                                       96.3                                                                      Enforcing Contracts (rank)                             11
      Procedures (number)                                                           3     Paying Taxes (rank)                                        39    Score of enforcing contracts (0-100)                 75.1
      Time (days)                                                                  22     Score of paying taxes (0-100)                             84.3   Time (days)                                          510
      Cost (% of income per capita)                                              37.0     Payments (number per year)                                 11    Cost (% of claim value)                              18.3
      Reliability of supply and transparency of tariff index (0-8)                  7     Time (hours per year)                                     221    Quality of judicial processes index (0-18)           14.0
                                                                                          Total tax and contribution rate (% of profit)             36.8
      Registering Property (rank)                                                  20     Postfiling index (0-100)                                  92.2   Resolving Insolvency (rank)                            23
      Score of registering property (0-100)                                      83.9                                                                      Score of resolving insolvency (0-100)                77.1
      Procedures (number)                                                           3                                                                      Recovery rate (cents on the dollar)                  82.2
      Time (days)                                                                   4                                                                      Time (years)                                          1.9
      Cost (% of property value)                                                   6.2                                                                     Cost (% of estate)                                    4.0
      Quality of the land administration index (0-30)                            28.5                                                                      Outcome (0 as piecemeal sale and 1 as going             1
                                                                                                                                                           concern)
                                                                                                                                                           Strength of insolvency framework index (0-16)        10.5

                                                                                                                                                                                                                       Page 4
Doing Business 2020                         Taiwan, China

     Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

 What the indicators measure                                              Case study assumptions

Procedures to legally start and formally operate a company               To make the data comparable across economies, several assumptions about the business and the
(number)                                                                 procedures are used. It is assumed that any required information is readily available and that the
                                                                         entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
  notarization)
                                                                         The business:
• Registration in the economy’s largest business city                    -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration,           liability company in the economy, the limited liability form most common among domestic firms is
  company seal)                                                          chosen. Information on the most common form is obtained from incorporation lawyers or the
                                                                         statistical office.
• Obtaining approval from spouse to start a business or to leave         -Operates in the economy’s largest business city. For 11 economies the data are also collected for
  the home to register the company
                                                                         the second largest business city.
• Obtaining any gender specific document for company                     -Performs general industrial or commercial activities such as the production or sale to the public of
  registration and operation or national identification card             goods or services. The business does not perform foreign trade activities and does not handle
                                                                         products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)                 polluting production processes.
• Does not include time spent gathering information                      -Does not qualify for investment incentives or any special benefits.
                                                                         -Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot           -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
  start on the same day)
                                                                         company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day                each.
                                                                         -Is managed by one local director.
• Procedure is considered completed once final document is               -Has between 10 and 50 employees one month after the commencement of operations, all of them
  received
                                                                         domestic nationals.
• No prior contact with officials                                        -Has start-up capital of 10 times income per capita.
                                                                         -Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per                -Leases the commercial plant or offices and is not a proprietor of real estate.
capita)                                                                  -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes                                         -Is in an office space of approximately 929 square meters (10,000 square feet).
                                                                         -Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
  commonly used in practice                                              The owners:

Paid-in minimum capital (% of income per capita)                         -Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration      is no legal age of majority, they are assumed to be 30 years old.
  or up to 3 months after incorporation                                  -Are in good health and have no criminal record.
                                                                         -Are married, the marriage is monogamous and registered with the authorities.
                                                                         -Where the answer differs according to the legal system applicable to the woman or man in
                                                                         question (as may be the case in economies where there is legal plurality), the answer used will be
                                                                         the one that applies to the majority of the population.

                                                                                                                                                                                  Page 5
Doing Business 2020                        Taiwan, China

Starting a Business - Taiwan, China

  Standardized Company

 Legal form                                                                           Private Company Limited By Shares

 Paid-in minimum capital requirement                                                  No minimum

 City Covered                                                                         Taipei

  Indicator                                                         Taiwan, China         East Asia &                 OECD high                Best Regulatory
                                                                                          Pacific                     income                   Performance

 Procedure – Men (number)                                           3                    6.5                         4.9                       1 (2 Economies)

 Time – Men (days)                                                  10                   25.6                        9.2                       0.5 (New Zealand)

 Cost – Men (% of income per capita)                                1.9                  17.4                        3.0                       0.0 (2 Economies)

 Procedure – Women (number)                                         3                    6.6                         4.9                       1 (2 Economies)

 Time – Women (days)                                                10                   25.7                        9.2                       0.5 (New Zealand)

 Cost – Women (% of income per capita)                              1.9                  17.4                        3.0                       0.0 (2 Economies)

 Paid-in min. capital (% of income per capita)                      0.0                  3.5                         7.6                       0.0 (120 Economies)

 Figure – Starting a Business in Taiwan, China – Score

                  88.2                                       90.5                                        99.1                                          100.0

                Procedures                                   Time                                        Cost                                   Paid-in min. capital

 Figure – Starting a Business in Taiwan, China and comparator economies – Ranking and Score

                                                                    DB 2020 Starting a Business Score

                             0                                                                                             100

                                                                                                                    98.2: Hong Kong SAR, China (Rank: 5)

                                                                                                                94.4: Taiwan, China (Rank: 21)

                                                                                                                93.4: Korea, Rep. (Rank: 33)

                                                                                                        86.1: Japan (Rank: 106)

                                                                                                    83.9: Regional Average (East Asia & Pacific)

                                                                                                    83.3: Malaysia (Rank: 126)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.

                                                                                                                                                                          Page 6
Doing Business 2020                Taiwan, China

  Figure – Starting a Business in Taiwan, China – Procedure, Time and Cost

                                                                Time (days)        Cost (% of income per capita)
               10                                                                                                                                                1.8

                                                                                                                                                                 1.6

                                                                                                                                                                        Cost (% of income per capita)
               8
                                                                                                                                                                 1.4

                                                                                                                                                                 1.2
 Time (days)

               6
                                                                                                                                                                 1

                                                                                                                                                                 0.8
               4
                                                                                                                                                                 0.6

                                                                                                                                                                 0.4
               2

                                                                                                                                                                 0.2

               0                                                                                                                                                 0
                                1                                                  2                                                  3
                                                                           Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

                                                                                                                                                                                                        Page 7
Doing Business 2020                        Taiwan, China

Details – Starting a Business in Taiwan, China – Procedure, Time and Cost

No.     Procedures                                                                                                Time to Complete   Associated Costs

1       Use the online platform to complete pre-registration inquiry and reservation of company                   7 days             TWD 150 (online pre-
        name, file applications for incorporation, taxation registration, labor insurance, national                                  registration enquiry and
        health insurance, labor pension contributions and submission of corporate work rules                                         reservation of company
        Agency : Ministry of Economic Affairs (MOEA)
                                                                                                                                     name) or TWD 300 (non-
        Entrepreneurs can search the availability of the company name online at the Company, Business
                                                                                                                                     online pre-registration
        and Limited Partnership One-Stop Service Request Website (http://onestop.nat.gov.tw).
                                                                                                                                     enquiry and reservation of
        Applications for company registration can be done online or in person at the relevant agency. For
        companies with a start-up capital of NT$500 million or more, the application should be submitted                             company name) + 0.025%
        to the Department of Commerce of the Ministry of Economic Affairs (MOEA). For companies with                                 of capital (in case the
        a start-up capital of less than NT$500 million, it should be submitted to either the Central Region                          registration fee payable is
        Office of MOEA or the Taipei City Government.                                                                                less than TWD 1,000, the
                                                                                                                                     registration fee shall be
        The review of pre-registration enquiry and reservation of company name takes 1 day, and review                               TWD 1,000)
        of application for incorporation that follows will take another 1 day. Government officials are
        required to review the application on the second day. At the end of the second day, (if approved)
        the approval shall be ready and the applicant can pick it up from MOEA. Otherwise, it is mailed to
        the applicant, in which case it takes up to four days to receive the confirmation. Starting December
        2018, results of application can be delivered to the applicant by way of electronic transmission.

        Entrepreneurs may also carry out the tax registration simultaneously, as well as labor insurance
        application, national health insurance application and pension fund plan appropriation application
        in the three-in-one comprehensive application procedure. National health insurance, labor
        insurance, and the pension plan report can be filed with one consolidated form. All firms may
        apply for national health insurance regardless of the number of employees, but only companies
        with five or more employees may apply for labor insurance (per Article 6 of the Labor Insurance
        Act). Also, when the number of employees is more than 30, the company shall simultaneously
        declare the work rules with the Council of Labor Affairs. If everything is in order, these applications
        can be approved within 5-7 working days. The aforementioned applications can be completed on
        the Company, Business and Limited Partnership One-Stop Service Request Website.

        Applicants may elect to make the above applications by means of “non-online application,”
        including by mail or over the counter, and the review and approval time of which shall be the same
        as “online applications”.

2       Make a company seal                                                                                       1 day              TWD 450 (depending on
        Agency : Seal maker                                                                                                          the number/ material used,
        A set of company seals is commonly prepared for registration (unless done online), and include                               each range from TWD 450
        the name of the company and name of the chairperson of the board of directors. Such seals are
                                                                                                                                     to TWD 1000)
        also commonly used in executing contracts, bank transactions, business transactions, applications
        and official documents. Starting October 2018, affixing seals of the company and the responsible
        person on incorporation documents in hard-copy applications is no longer required by the
        competent authority and such seal-affixing can be replaced by signatures.

3       Submit a CPA audit report showing that the amount of capital invested can cover company                   2 days             TWD 5,000 - 20,000 fee
        establishment cost                                                                                                           varies across firms
        Agency : Ministry of Economic Affairs (MOEA)
        In place of showing that the invested capital will cover the costs of establishing a company to the
        Ministry of Economic Affairs, entrepreneurs can submit a CPA audit report showing that the
        invested capital has been fully paid pursuant to Article 7 of Regulations Governing Certification of
        Capital upon Registration Applications of Companies (last amended on Nov. 11, 2018). Section 1
        of Article 7 of Company Act (last amended on January 4, 2012) allows a company to attach an
        auditing certificate from an independent certified public accountant within 30 days after the
        registration of incorporation. Entrepreneurs can also submit the audit report via the One-Stop-
        Shop online system (http://onestop.nat.gov.tw) using electronic signature.

Takes place simultaneously with previous procedure.

                                                                                                                                                                   Page 8
Doing Business 2020                         Taiwan, China

     Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

 What the indicators measure                                              Case study assumptions

Procedures to legally build a warehouse (number)                         To make the data comparable across economies, several assumptions about the construction
                                                                         company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
  clearances, licenses, permits and certificates
                                                                         The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary      - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
  inspections
                                                                         business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage                   - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
                                                                         licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion             or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days)                 experts, such as geological or topographical experts.
                                                                         - Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information                      completion.
• Each procedure starts on a separate day—though procedures
  that can be fully completed online are an exception to this rule       The warehouse:

                                                                         - Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
  received                                                               - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
                                                                         square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials                                        located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
                                                                         owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
                                                                         - Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
                                                                         preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes                                         approvals from external agencies, these are counted as procedures.
                                                                         - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15)                                    requirements).

• Quality of building regulations (0-2)                                  The water and sewerage connections:
• Quality control before construction (0-1)                              - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3)                              delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
                                                                         infrastructure, a septic tank in the smallest size available will be installed or built.
• Quality control after construction (0-3)
                                                                         - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2)                                  of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4)                                      a peak wastewater flow of 1,136 liters (300 gallons) a day.
                                                                         - Will have a constant level of water demand and wastewater flow throughout the year; will be 1
                                                                         inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

                                                                                                                                                                                  Page 9
Doing Business 2020                        Taiwan, China

Dealing with Construction Permits - Taiwan, China

  Standardized Warehouse

 Estimated value of warehouse                                                         TWD 39,590,302.50

 City Covered                                                                         Taipei

  Indicator                                                         Taiwan, China         East Asia &               OECD high                Best Regulatory
                                                                                          Pacific                   income                   Performance

 Procedures (number)                                                10                   14.8                       12.7                    None in 2018/19

 Time (days)                                                        82                   132.3                      152.3                   None in 2018/19

 Cost (% of warehouse value)                                        0.4                  3.2                        1.5                     None in 2018/19

 Building quality control index (0-15)                              13.0                 9.4                        11.6                    15.0 (6 Economies)

 Figure – Dealing with Construction Permits in Taiwan, China – Score

                   80.0                                      83.9                                       98.0                                          86.7

                Procedures                                   Time                                       Cost                             Building quality control index

 Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Ranking and Score

                                                           DB 2020 Dealing with Construction Permits Score

                             0                                                                                             100

                                                                                                               93.5: Hong Kong SAR, China (Rank: 1)

                                                                                                          89.9: Malaysia (Rank: 2)

                                                                                                        87.1: Taiwan, China (Rank: 6)

                                                                                                     84.4: Korea, Rep. (Rank: 12)

                                                                                                    83.1: Japan (Rank: 18)

                                                                                         70.0: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.

                                                                                                                                                                            Page 10
Doing Business 2020                Taiwan, China

  Figure – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost

                                                                 Time (days)       Cost (% of warehouse value)
                                                                                                                                                                0.25
               80

               70

                                                                                                                                                                        Cost (% of warehouse value)
                                                                                                                                                                0.2
               60
 Time (days)

               50                                                                                                                                               0.15

               40

                                                                                                                                                                0.1
               30

               20
                                                                                                                                                                0.05
               10

               0                                                                                                                                                0
                    1          *2            3              4              5              6              7               8              9              10
                                                                           Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

                                                                                                                                                                                                      Page 11
Doing Business 2020                                Taiwan, China

Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Measure of Quality

              16                                         15.0
              14             13.0                                                    13.0                                             13.0
                                                                                                                 12.0
Index score

              12
              10                                                                                                                                             9.4
               8
               6
               4
               2
               0

                           Taiwan,                      Hong                        Japan                        Korea,              Malaysia                East
                            China                       Kong                                                      Rep.                                       Asia
                                                        SAR,                                                                                                  &
                                                        China                                                                                               Pacific

Details – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost

  No.              Procedures                                                                                              Time to Complete     Associated Costs

1                  Obtain information about infrastructure from the water company                                          3 days               no charge
                   Agency : Taiwan Water Corporation at One-Stop Counter
                   BuildCo visits the One-Stop Counter to obtain information on the intended building site’s water
                   and electricity infrastructure.

              2    Obtain information about electricity infrastructure from electricity provider                           3 days               no charge
                   Agency : Taiwan Power Company (Taipower) at One-Stop Counter
                   Although this is not a mandatory procedures, builders usually resort to the one-stop counter to
                   obtain information about electricity infrastructure. The information is free of charge and allows the
                   builder to optimize resources.

3                  Request and obtain building permit from the City Government at the One-Stop Counter                     21 days              TWD 31,402
                   Agency : City Government at the One-Stop Counter
                   A One-Stop Counter was introduced in March 2011 allowing builders to obtain several approvals
                   in one place.

                   Before presenting an application, the applicant should carefully follow the Self Checklist of
                   Application for Construction Permit and Review of Design for Water Supply Documents (OSC2).
                   The applicant should then place the application form, drawings and explanations, and other
                   important documents in proper order in a file envelope, write “Application for Building Permit and
                   Water Supply” on the outside of the envelope, and deliver this by mail or in person to the Counter.

                   If, due to particular case circumstances, there is a need for an application to be processed jointly
                   with another unit, the applicant should fill out a Taipei City Government Building Permit (Design
                   Alteration) Joint Review Form, selecting the joint processing unit and joint review item(s), and
                   submit it once.

                   If an application is not within the scope of the One-Stop Counter’s jurisdiction, or is one that
                   cannot be processed due to special circumstances, the One-Stop Counter will not be able to
                   accept it, but will assist the applicant in going through the ordinary channels.

                   If an application is within the scope of the One-Stop Counter’s jurisdiction, the staff member that
                   receives it will verify that the correct documents have been submitted, assign the application a
                   case number, and submit a receipt stamp or fax a receipt stub with the fees that need to be paid.

                   When the documents are complete, the One-Stop Counter will forward them to the relevant offices
                   (the Construction Management Office, Bureau of High Speed Rail, Department of Rapid Transit
                   Systems, Department of Public Works, Department of Cultural Affairs, Department of
                   Transportation, Department of Land, Department of Urban Development, etc.) to conduct a joint
                   review. When a joint review of an application has been conducted by the One-Stop Counter and it
                   has been found that the application does not conform to requirements, the One-Stop Counter will
                   notify the applicant that he has one chance to make the necessary amendments.

                   Once all amendments have been made, a construction permit is issued, and fees for the
                   construction permit, specification of building setback line, wastewater discharge permit, and land
                   ownership certificate are paid.

                   It is possible to apply for a building permit online since April 1, 2015 and the website is
                   http://tccmoapply.dba.tcg.gov.tw:8080/tccmoapply/

                                                                                                                                                                      Page 12
Doing Business 2020                        Taiwan, China

4      Report the start date and present construction plan to the City Government at the One-Stop            1 day     TWD 25,674
       Counter and pay air pollution protection fee before starting construction
       Agency : City Government at the One-Stop Counter
       After BuildCo obtains the construction permit, he prepares the application for commencement of
       construction, a construction plan, and other required documentation and submits them to the One-
       Stop Counter.

       BuildCo then pays the air pollution protection fee and obtains approval for the commencement of
       work.

       Under the provisions of Article 4 of the Regulations Governing Construction Project Air Pollution
       Prevention Facilities, the case study warehouse would be classified as a Grade 2 construction.

5      Request occupancy permit, post-contruction approvals and registrations at the One-Stop                1 day     TWD 79,181
       Counter
       Agency : City Government at the One-Stop Counter
       Where construction is completed without involving damage to adjacent property, BuildCo can take
       the original construction permit to the One-Stop Counter and make a one-time submission of the
       Self Checklist for Post-Completion Application Documents (OSC4) and apply for an occupancy
       permit.

       The mode of submission is the same as the construction permit application. BuildCo must place
       the relevant application letter, application form, drawings and explanations, and other
       documentation required by law or by the regulations of the unit concerned into one envelope for
       each separate application. BuildCo must also write the type of application and the unit concerned
       on the envelope (e.g., “Application to the Fire Department for post-completion inspection of fire-
       fighting equipment.”)

       The One-Stop Counter will pass the application documents to the relevant units or review and
       processing. If the building is found to be in compliance with applicable regulations, the One-Stop
       Counter will approve the issuance of an occupancy permit and BuildCo must pay the applicable
       fees. BuildCo may choose to pick up the occupancy permit in person at the One-Stop Counter or
       have it mailed to him. The One-Stop Counter will also notify Taipei Water Department to carry out
       the water connection procedures.

       For the registration of a new building, Point 3 of the Supplementary Regulations on Computing
       and Collecting Land Registration Fees and Penalties stipulates that the registration fee is
       computed according to the total cost of construction as recorded in the occupancy permit. Article
       84 of the Land Registration Regulations stipulates that the general land registration procedure
       applies to the registration of a new building; hence the applicable registration fee is 0.2% of the
       total cost of construction.

6      Receive final inspection                                                                              1 day     no charge
       Agency : Relevant Agencies at One-Stop Counter
       As part of the review process, the relevant departments will conduct a joint final inspection.

7      Obtain occupancy permit, post-contruction approvals and registrations at the One-Stop                 33 days   no charge
       Counter
       Agency : City Government at One-Stop Counter
       Once the issuance of the occupancy permit is approved, the One-Stop Counter will transmit the
       documentation to apply for registration of title to the local land administration office.

8      Apply for water supply and sewerage connection from Taiwan Water Corporation                          1 day     no charge
       Agency : Taiwan Water Corporation
       The applicant may channel the request for water connection through the one stop counter for
       building permits or may request it directly from the Taiwan Water Corporation. The Review of
       Design for Water Supply Documents (OSC2) should by this point already be completed and a
       simple notification is required for the water company inspection to take place.

9      Receive water and sewerage inspections                                                                1 day     no charge
       Agency : Taiwan Water Corporation
       The Taiwan Water Corporation conducts an inspection to evaluate that all conditions have been
       met and match the specifications submitted in the Review of Design for Water Supply Documents
       (OSC2).

10     Obtain connection to water and sewerage                                                               19 days   TWD 25,000
       Agency : Taiwan Water Corporation
       After the water and sewerage inspections are done, BuildCo received water and sewerage
       connections.

Takes place simultaneously with previous procedure.

                                                                                                                                    Page 13
Doing Business 2020                         Taiwan, China

Details – Dealing with Construction Permits in Taiwan, China – Measure of Quality

                                                                                                                        Answer                    Score

Building quality control index (0-15)                                                                                                             13.0

Quality of building regulations index (0-2)                                                                                                       2.0

  How accessible are building laws and regulations in your economy? (0-1)                                               Available online; Free    1.0
                                                                                                                        of charge.

  Which requirements for obtaining a building permit are clearly specified in the building regulations or on any        List of required          1.0
  accessible website, brochure or pamphlet? (0-1)                                                                       documents; Fees to
                                                                                                                        be paid; Required
                                                                                                                        preapprovals.

Quality control before construction index (0-1)                                                                                                   1.0

  Which third-party entities are required by law to verify that the building plans are in compliance with existing      Licensed architect.       1.0
  building regulations? (0-1)

Quality control during construction index (0-3)                                                                                                   2.0

  What types of inspections (if any) are required by law to be carried out during construction? (0-2)                   Inspections by in-        1.0
                                                                                                                        house engineer;
                                                                                                                        Unscheduled
                                                                                                                        inspections.

  Do legally mandated inspections occur in practice during construction? (0-1)                                          Mandatory                 1.0
                                                                                                                        inspections are
                                                                                                                        always done in
                                                                                                                        practice.

Quality control after construction index (0-3)                                                                                                    3.0

  Is there a final inspection required by law to verify that the building was built in accordance with the approved     Yes, final inspection     2.0
  plans and regulations? (0-2)                                                                                          is done by
                                                                                                                        government agency;
                                                                                                                        Yes, in-house
                                                                                                                        engineer submits
                                                                                                                        report for final
                                                                                                                        inspection.

  Do legally mandated final inspections occur in practice? (0-1)                                                        Final inspection          1.0
                                                                                                                        always occurs in
                                                                                                                        practice.

Liability and insurance regimes index (0-2)                                                                                                       1.0

  Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use      Professional in           1.0
  (Latent Defect Liability or Decennial Liability)? (0-1)                                                               charge of the
                                                                                                                        supervision;
                                                                                                                        Construction
                                                                                                                        company; Owner or
                                                                                                                        investor.

  Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or        No party is required      0.0
  problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)          by law to obtain
                                                                                                                        insurance .

Professional certifications index (0-4)                                                                                                           4.0

  What are the qualification requirements for the professional responsible for verifying that the architectural plans   Minimum number of         2.0
  or drawings are in compliance with existing building regulations? (0-2)                                               years of experience;
                                                                                                                        University degree in
                                                                                                                        architecture or
                                                                                                                        engineering; Being a
                                                                                                                        registered architect or
                                                                                                                        engineer; Passing a
                                                                                                                        certification exam.

                                                                                                                                                          Page 14
Doing Business 2020                      Taiwan, China

 What are the qualification requirements for the professional who supervises the construction on the ground? (0-   Minimum number of        2.0
 2)                                                                                                                years of experience;
                                                                                                                   University degree in
                                                                                                                   engineering,
                                                                                                                   construction or
                                                                                                                   construction
                                                                                                                   management; Being
                                                                                                                   a registered architect
                                                                                                                   or engineer; Passing
                                                                                                                   a certification exam.

                                                                                                                                                  Page 15
Doing Business 2020                          Taiwan, China

     Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.

 What the indicators measure                                               Case study assumptions

Procedures to obtain an electricity connection (number)                  To make the data comparable across economies, several assumptions about the warehouse, the
                                                                         electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
  clearances and permits                                                 The warehouse:
• Completing all required notifications and receiving all necessary      - Is owned by a local entrepreneur and is used for storage of goods.
  inspections
                                                                         - Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing          the second largest business city.
  material for these works                                               - Is located in an area where similar warehouses are typically located and is in an area with no
                                                                         physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final           - Is a new construction and is being connected to electricity for the first time.
  supply
                                                                         - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days)                 feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

• Is at least 1 calendar day                                             The electricity connection:
• Each procedure starts on a separate day                                - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information                      kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
                                                                         - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no      network and is either overhead or underground, whichever is more common in the area where the
  prior contact with officials                                           warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
                                                                         excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
                                                                         owners’ private property because the warehouse has access to a road.
capita)
                                                                         - Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes                                         completed up to and including the customer’s service panel or switchboard and the meter base.

• Value added tax excluded                                               The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
                                                                         - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3)                          a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
                                                                         (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1)                                   (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1)                                    - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
                                                                         - Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
                                                                         the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*

• Price based on monthly bill for commercial warehouse in case
  study

*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.

                                                                                                                                                                                       Page 16
Doing Business 2020                      Taiwan, China

Getting Electricity - Taiwan, China

       Standardized Connection

    Name of utility                                                                               Taiwan Power Company

    Price of electricity (US cents per kWh)                                                       11.7

    City Covered                                                                                  Taipei

       Indicator                                                          Taiwan, China               East Asia &                 OECD high                     Best Regulatory
                                                                                                      Pacific                     income                        Performance

    Procedures (number)                                                   3                          4.2                         4.4                            3 (28 Economies)

    Time (days)                                                           22                         63.2                        74.8                           18 (3 Economies)

    Cost (% of income per capita)                                         37.0                       594.6                       61.0                           0.0 (3 Economies)

    Reliability of supply and transparency of tariff index (0-8)          7                          4.0                         7.4                            8 (26 Economies)

  Figure – Getting Electricity in Taiwan, China – Score

                      100.0                                        98.3                                              99.5                                               87.5

                                                                                                                                                 Reliability of supply and transparency of
                    Procedures                                     Time                                              Cost
                                                                                                                                                                  tariff index

  Figure – Getting Electricity in Taiwan, China and comparator economies – Ranking and Score

                                                                              DB 2020 Getting Electricity Score

                                 0                                                                                                     100

                                                                                                                                 99.9: Korea, Rep. (Rank: 2)

                                                                                                                                 99.3: Hong Kong SAR, China (Rank: 3)

                                                                                                                                 99.3: Malaysia (Rank: 4)

                                                                                                                              96.3: Taiwan, China (Rank: 9)

                                                                                                                            93.2: Japan (Rank: 14)

                                                                                                           75.1: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.

  Figure – Getting Electricity in Taiwan, China – Procedure, Time and Cost

                                                                      Time (days)            Cost (% of income per capita)
                                                                                                                                                                                    40

               20
                                                                                                                                                                                    35
                                                                                                                                                                                         Cost (% of income per capita)

                                                                                                                                                                                    30
               15
 Time (days)

                                                                                                                                                                                    25

                                                                                                                                                                                    20
               10
                                                                                                                                                                                    15

                                                                                                                                                                                    10
               5

                                                                                                                                                                                    5

               0                                                                                                                                                                    0
                                     1                                                        2                                                             3
                                                                                      Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
                                                                                                                                                                                                                         Page 17
Doing Business 2020                 Taiwan, China

reflected here, see the summary below.

 Figure – Getting Electricity in Taiwan, China and comparator economies – Measure of Quality

               9                          8                       8                        8         8
               8     7
               7
 Index score

               6
               5                                                                                              4.0
               4
               3
               2
               1
               0

                   Taiwan,               Hong                   Japan                    Korea,   Malaysia    East
                    China                Kong                                             Rep.                Asia
                                         SAR,                                                                  &
                                         China                                                               Pacific

                                                                                                                       Page 18
Doing Business 2020                        Taiwan, China

Details – Getting Electricity in Taiwan, China – Procedure, Time and Cost

No.     Procedures                                                                                                 Time to Complete   Associated Costs

1       Submit application for connection and await completion of design                                           4 calendar days    TWD 293,202
        Agency : Taiwan Power Company (TPC)
        The customer fills out an application form and sends it to (or takes it to) TPC’s branch and pays
        the fee for connection. The following documents are required: Application form, an indoors wires
        diagram, and the usage license or certificate approved by authorities of building. TPC will then
        design the external line.

        Before the external connection works can start the utility has to finish the design for the works. In
        this case, when the customer submits an application at a TPC branch, TPC will estimate the
        customer's Contribution in Aid of Construction Costs. The customer can pay the fee when they
        apply.

        The Customer’s Contribution in Aid of Construction Costs includes fees for the power line design,
        construction, meter installation and check of the internal wiring, and labor costs.

2       Await completion of external works by TPC’s subcontractor                                                  17 calendar days   TWD 0
        Agency : Taiwan Power Company (TPC)
        The contractor hired by the utility will complete the external connection work. All material is
        available in most cases. The customer doesn’t have to buy any material for the external
        connection works.

        At this stage, an excavation permit must be obtained by the utility. It is obtained from the agency
        of the government that is in charge of the roads. Once the permit has been issued, the utility's
        contractor will execute the trench excavation, installation of the cables and pavement
        rehabilitation.

3       Await meter installation, internal wiring inspection and electricity flow from TPC                         1 calendar day     TWD 0
        Agency : Taiwan Power Company (TPC)
        The electrician who did the internal wiring submits a signed notification to the utility upon
        completion in which they guarantee it has been carried out according to the regulations. Then TPC
        will inspect the internal wiring after the external connection works are over.

        According to Article 32 of "The Electricity Act", the installation of user electricity devices by
        electricity enterprises shall comply with relevant regulations provided by the central competent
        authority and electricity supply may only be connected after said devices have passed inspection.
        For electricity equipment already installed by the user, inspection shall be carried out with the
        result thereof recorded at least once every three years. In the event that non-conformity is found,
        a time period shall be specified for the user to make rectification.

        Taipower inspects the internal wiring and installs the meter after the external connection works are
        over. If the internal wiring check is passed, the meter will be installed and the electricity will start
        flowing.

Takes place simultaneously with previous procedure.

                                                                                                                                                         Page 19
Doing Business 2020                          Taiwan, China

 Details – Getting Electricity in Taiwan, China – Measure of Quality

                                                                                                                                                    Answer

 Reliability of supply and transparency of tariff index (0-8)                                                                                      7

 Total duration and frequency of outages per customer a year (0-3)                                                                                 3

    System average interruption duration index (SAIDI)                                                                                             0.3

    System average interruption frequency index (SAIFI)                                                                                            0.2

    What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI                                     1.0

 Mechanisms for monitoring outages (0-1)                                                                                                           1

    Does the distribution utility use automated tools to monitor outages?                                                                          Yes

 Mechanisms for restoring service (0-1)                                                                                                            1

    Does the distribution utility use automated tools to restore service?                                                                          Yes

 Regulatory monitoring (0-1)                                                                                                                       1

    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?                      Yes

 Financial deterrents aimed at limiting outages (0-1)                                                                                              1

    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?                Yes

 Communication of tariffs and tariff changes (0-1)                                                                                                 0

    Are effective tariffs available online?                                                                                                        Yes

    Link to the website, if available online                                                                                                       ttp://www.taipower.com.tw
                                                                                                                                                   /tc/page.aspx?mid=238

    Are customers notified of a change in tariff ahead of the billing cycle?                                                                       No

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

                                                                                                                                                                               Page 20
Doing Business 2020                         Taiwan, China

     Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

 What the indicators measure                                              Case study assumptions

Procedures to legally transfer title on immovable property               To make the data comparable across economies, several assumptions about the parties to the
(number)                                                                 transaction, the property and the procedures are used.

• Preregistration procedures (for example, checking for liens,           The parties (buyer and seller):
  notarizing sales agreement, paying property transfer taxes)
                                                                         - Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city.        - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with           area of the economy’s largest business city. For 11 economies the data are also collected for the
  municipality)                                                          second largest business city.
                                                                         - Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days)                 - Perform general commercial activities.

• Does not include time spent gathering information                      The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures            - Has a value of 50 times income per capita, which equals the sale price.
  that can be fully completed online are an exception to this rule
                                                                         - Is fully owned by the seller.
• Procedure is considered completed once final document is               - Has no mortgages attached and has been under the same ownership for the past 10 years.
  received                                                               - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials                                        - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
                                                                         official limits), and no rezoning is required.
Cost required to complete each procedure (% of property                  - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value)                                                                   story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
                                                                         is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and           building codes and legal requirements. The property, consisting of land and building, will be
  taxes).
                                                                         transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are            - Will not be subject to renovations or additional construction following the purchase.
  excluded                                                               - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
                                                                         - Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30)                              industrial plants, waste storage or certain types of agricultural activities, are required.
                                                                         - Has no occupants, and no other party holds a legal interest in it.
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)

                                                                                                                                                                                       Page 21
Doing Business 2020                        Taiwan, China

Registering Property - Taiwan, China

  Indicator                                                         Taiwan, China           East Asia &                OECD high            Best Regulatory
                                                                                            Pacific                    income               Performance

 Procedures (number)                                                3                      5.5                        4.7                  1 (5 Economies)

 Time (days)                                                        4                      71.9                       23.6                 1 (2 Economies)

 Cost (% of property value)                                         6.2                    4.5                        4.2                  0.0 (Saudi Arabia)

 Quality of the land administration index (0-30)                    28.5                   16.2                       23.2                 None in 2018/19

 Figure – Registering Property in Taiwan, China – Score

                   83.3                                      98.6                                          58.7                                     95.0

               Procedures                                    Time                                          Cost
                                                                                                                                   Quality of the land administration index

 Figure – Registering Property in Taiwan, China and comparator economies – Ranking and Score

                                                                    DB 2020 Registering Property Score

                              0                                                                                             100

                                                                                                        83.9: Taiwan, China (Rank: 20)

                                                                                                    79.5: Malaysia (Rank: 33)

                                                                                                  76.3: Korea, Rep. (Rank: 40)

                                                                                                 75.6: Japan (Rank: 43)

                                                                                              73.6: Hong Kong SAR, China (Rank: 51)

                                                                                57.5: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.

                                                                                                                                                                              Page 22
Doing Business 2020                Taiwan, China

  Figure – Registering Property in Taiwan, China – Procedure, Time and Cost

                                                                  Time (days)       Cost (% of property value)
                4                                                                                                                                                  7

               3.5                                                                                                                                                 6

                                                                                                                                                                        Cost (% of property value)
                3
                                                                                                                                                                   5
 Time (days)

               2.5
                                                                                                                                                                   4
                2
                                                                                                                                                                   3
               1.5

                                                                                                                                                                   2
                1

               0.5                                                                                                                                                 1

                0                                                                                                                                                  0
                                 1                                                  2                                                  3
                                                                            Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

                                                                                                                                                                                                     Page 23
Doing Business 2020                                Taiwan, China

Figure – Registering Property in Taiwan, China and comparator economies – Measure of Quality

              35
              30             28.5                       27.5                                                    27.5
                                                                                    25.5                                               26.5
Index score

              25
              20                                                                                                                                            16.2
              15
              10
              5
              0

                           Taiwan,                      Hong                        Japan                      Korea,                Malaysia               East
                            China                       Kong                                                    Rep.                                        Asia
                                                        SAR,                                                                                                 &
                                                        China                                                                                              Pacific

Details – Registering Property in Taiwan, China – Procedure, Time and Cost

  No.              Procedures                                                                                             Time to Complete      Associated Costs

1                  Buyer researches the property rights and encumbrances registered against the property at               Less than one day,    TWD 50; (TWD 10 for the
                   the registry of titles                                                                                 online                search and TWD 20 per
                   Agency : Land Registry                                                                                                       sheet of e-transcript)
                   The buyer obtains copies of the land and building's registration from the electronic registration
                   database. Each page costs TWD 20.

2                  Buyer pays the Deed tax at the Municipality                                                            Less than one day,    TWD 2,415,008.45; (6% of
                   Agency : Municipality                                                                                  online                standard property value
                   The Deed tax is 6% of the standard property value, and buyer pays it at the Municipality. Seller                             (Deed Tax) + 0.1% Stamp
                   pays the Land value increase tax.
                                                                                                                                                Duty)
                   As a result, Taiwan government (Real-estate Valuation Committee) issues so-called "standard"
                   valuation information of property every year for tax authorities' and tax payers' reference. After
                   years, such government announcement of valuation becomes the reported tax base by taxpayers
                   and acceptable by tax authorities. The real "contract price" might be ignored when filing deed tax
                   in practice now. The standard value is always lower than market price.

                   As of January 30 2005, the Land value increase tax (capital gains tax) is levied according to the
                   following rates:
                   (1) Where the net increase of the value of any land is no more than 100 percent of the original
                   value of such land, the rate shall be 20 percent of the net increase.
                   (2) Where the net increase of the value of any land is no more than 200 percent of the original
                   value of such land, the rate shall be 30 percent of that part of the net increase which exceeds the
                   original value by more than 100 percent in addition to the rate prescribed in the preceding section.
                   (3) Where the net increase of the value of any land is no more than 300 percent of the original
                   value of such land, the rate shall be 40 perсent of that part of the net increase which exceeds the
                   original value by more than 200 percent in addition to the rates prescribed in the preceding
                   section.

                   As of October 2009, the Ministry of Finance completed the development of the Local Tax Online
                   Filing Portal, provided for use by the public nationwide.
                   Taiwan government spent two years planning this system, which enables the public to carry out
                   the filing for these local taxes online at home, and speeds up the procedure for property
                   registration. (The Local Tax Online Filing Portal website can be visited at:
                   https://net.tax.nat.gov.tw/PLRX/Lrx200d01)

3                  Registration of transfer of title at the Land Registry                                                 3 days                TWD 39,670.3; (0.1% of
                   Agency : Land Registry                                                                                                       property value (registration
                   The transfer of title is registered at the Land Registry. The original ownership certificate must be                         fee) + TWD 80 for new
                   returned and a new one is issued.
                                                                                                                                                ownership certificate)

 Takes place simultaneously with previous procedure.

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