Taiwanese exporters receiving dollars: foreign exchange declarations and conversion
Taiwan's electronics and machinery exporters earn mostly in US dollars. When they convert into New Taiwan dollars above a threshold, the bank files a foreign exchange declaration with the central bank. Holding dollars until needed is common and allowed.
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A Taichung precision components maker ships $720,000 of parts to a buyer in California. The payment arrives in its US dollar account at its Taiwanese bank and stays in dollars. When the company converts dollars into NT dollars for payroll, conversions above NT$500,000 come with a foreign exchange declaration that the bank files with the central bank.
The declaration rule
Under Taiwan's Foreign Exchange Control Act and the central bank's regulations, foreign exchange settlements above NT$500,000 equivalent per transaction require a declaration. The bank processes the declaration and reports it.
Trade settlements
Settlements for exports and imports of goods and services are generally declared without the annual settlement limits that apply to other purposes, provided the company documents the trade. Keep invoices and export records ready for the bank.
Holding dollars
Taiwanese exporters commonly hold US dollar accounts and convert as needed. Holding dollars lets the company pay dollar costs directly, such as imported materials, equipment and overseas services, and convert the surplus on a schedule.
Currency risk
The NT dollar has moved significantly against the US dollar at times. Converting a planned amount ahead of payroll and supplier payments gives control over the rate.
Where Rivet fits
Rivet opens business accounts for registered companies after verification. Taiwan-registered companies should follow the central bank's foreign exchange rules and check with their bank before receiving funds abroad. Taiwanese companies' subsidiaries abroad can use a Rivet business account with US account details on every plan and payouts in 120+ countries. Rivet is not a bank; regulated partner institutions hold the funds.
Questions people ask
When is an FX declaration needed in Taiwan?
For foreign exchange settlements, such as converting foreign currency into NT dollars or the reverse, above NT$500,000 equivalent per transaction.
Are there limits on converting export proceeds?
Settlements for trade in goods and services are generally outside the annual limits that apply to other purposes, with documentation.
Can Taiwanese companies hold dollars?
Yes. Companies commonly hold US dollar accounts at Taiwanese banks.
Who files the declaration?
The company completes it and the bank processes and reports it to the Central Bank.
Sources
William covers what happens once a company starts moving money: getting the business verified, paying contractors and suppliers abroad, and keeping card spend under control. William writes for the founder or finance lead who has to make it work this week, and links every rule cited to the text it comes from.
More from William Sunjo M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- taiwan
- exporters
- fx declaration
- central bank
- usd
- twd
