Before Initiating Civil Litigation in Taiwan over Cross-Border Commercial Disputes, Businesses Should Understand Court Costs and Litigation Expenses

In cross-border commercial transactions, businesses may encounter issues such as unpaid purchase prices, agency or distribution disputes, technology licensing disputes, contract termination, claims for service fees, intellectual property infringement, or damages. When negotiations, formal demands, or settlement efforts fail to resolve a dispute, a business may need to consider initiating civil litigation before a court in Taiwan.

Litigation, however, is not only a matter of legal claims; it also involves cost management. Before deciding whether to initiate an action, file an appeal, apply for provisional attachment, or pursue compulsory execution, a business should first understand court costs and related procedural expenses to avoid underestimating litigation costs and affecting its subsequent dispute-resolution strategy.

Court Costs in Civil Cases Are Calculated in Tiers Based on the Amount or Value of the Claim

For civil actions arising from proprietary rights, court costs are generally calculated in tiers according to the amount or value of the claim. The higher the amount or value of the claim, the higher the court costs payable. Any remainder of less than NTD 10,000 is generally calculated as NTD 10,000 in accordance with law.

According to the current Judicial Yuan reference table for calculating court costs in civil litigation, the current amounts collected at the first, second, and third instances in cases involving proprietary rights are as follows:

Amount or Value of the Claim	Court Costs at First Instance	Court Costs at Second and Third Instances
NTD 100,000 or Less	NTD 1,500	NTD 2,250
Portion Over NTD 100,000 up to NTD 1 Million	NTD 130 per NTD 10,000	NTD 195 per NTD 10,000
NTD 1 Million	NTD 13,200	NTD 19,800
Portion Over NTD 1 Million up to NTD 10 Million	NTD 117 per NTD 10,000	NTD 175.5 per NTD 10,000
NTD 10 Million	NTD 118,500	NTD 177,750
Portion Over NTD 10 Million up to NTD 100 Million	NTD 88 per NTD 10,000	NTD 132 per NTD 10,000
NTD 100 Million	NTD 910,500	NTD 1,365,750
Portion Over NTD 100 Million up to NTD 1 Billion	NTD 77 per NTD 10,000	NTD 115.5 per NTD 10,000
NTD 1 Billion	NTD 7,840,500	NTD 11,760,750
Portion Over NTD 1 Billion	NTD 66 per NTD 10,000	NTD 99 per NTD 10,000

For example, under a cross-border sales contract, if a business claims payment of the purchase price, a contractual penalty, or damages, the court will generally first determine the amount of the claim based on the amount sought and then calculate the court costs payable accordingly.

Court Costs for Appeals to the Second and Third Instances Are Generally Higher Than at First Instance

If civil litigation proceeds to the second or third instance, appeal court costs will generally be increased based on the applicable first-instance calculation basis. Accordingly, when assessing whether to appeal, a business should consider not only the first-instance court costs but also the potential court costs of subsequent appeals.

For cross-border commercial disputes involving higher claim amounts, court costs at the second or third instance may become a significant expense. Before deciding whether to appeal, a business should therefore assess the benefit of the appeal, the possibility of supplementing the evidence, the likelihood of success, the financial condition of the opposing party, and the feasibility of subsequent enforcement.

Actions Not Arising from Proprietary Rights and Common Procedural Expenses

If a case does not merely seek monetary payment but involves confirmation of a legal relationship, personality rights, a claim for forbearance, or another matter not arising from proprietary rights, the court-cost standard for actions not arising from proprietary rights may apply. If the same action includes both proprietary and non-proprietary claims, the court costs may need to be calculated separately.

Type of Case	First Instance	Second and Third Instances
Action or Appeal Not Arising from Proprietary Rights	NTD 4,500	NTD 6,750

In addition to initiating an action and filing appeals, the handling of cross-border disputes may also involve expenses for mediation, compulsory execution, provisional attachment, provisional injunction, document translation, photocopying of case files and exhibits, reproduction of electronic court records, or service of process. Businesses should estimate these expenses separately according to the procedural stage of the case.

Type of Procedure	Amount or Method of Calculation	Practical Note
Application for Mediation	Exempt if below NTD 100,000; for NTD 100,000 or more, NTD 1,000 to NTD 5,000 according to the applicable tier	Suitable for cases in which an early settlement may be attempted or a commercial relationship preserved.
Application for Compulsory Execution	For cases involving proprietary rights, exempt if below NTD 5,000 or based on a certificate of claim; for NTD 5,000 or more, calculated at NTD 0.8 per NTD 100	Even after obtaining a favorable judgment, it remains necessary to assess whether the opposing party has assets available for execution.
Expenses for Translation, Photocopying, Transcription, Electronic Court Records, and Related Items	Calculated according to the applicable court fee standards or actual expenditures	Cross-border cases often involve foreign-language contracts, emails, technical documents, and corporate records, which should be estimated in advance.

Greater Attention Should Be Given to Estimating Litigation Costs in Cross-Border Disputes

Cross-border commercial disputes are generally more complex than ordinary domestic cases. In addition to court costs, they may involve the costs of translating foreign-language contracts, collecting evidence overseas, authenticating corporate documents, service procedures, opinions on foreign law, cross-border enforcement, and legal fees.

Before initiating litigation, a business should therefore assess the amount claimed, the location of the opposing party's assets, the possibility of enforcement after a favorable judgment, the completeness of the evidence, and the time costs of litigation. If the amount or value of the claim is not high but the costs of cross-border evidence collection and enforcement are excessive, the business may also consider handling the dispute through a demand letter from counsel, mediation, arbitration, settlement, or commercial negotiation.

Common Matters Businesses Should Assess

• Amount or Value of the Claim: Confirm whether the principal amount claimed, contractual penalties, damages, interest, or other incidental claims will affect the calculation of court costs.
• Court Costs: Estimate the potential expenses for the first, second, and third instances separately to avoid estimating only the costs of initiating the action.
• Evidence and Translation Costs: Foreign-language contracts, correspondence, procurement documents, invoices, customs declaration records, and technical documents may require translation or authentication.
• Feasibility of Enforcement: Even after obtaining a favorable judgment, it remains necessary to assess whether the opposing party has assets available for execution in Taiwan or another jurisdiction where execution is available.
• Dispute-Resolution Clauses: Cross-border contracts should clearly specify the court with jurisdiction, governing law, arbitration clauses, methods of service, and language clauses.

Intellectual Property Strategy Recommendations

AIPT Group recommends that, when entering into cross-border contracts, licensing agreements, agency or distribution agreements, or technology cooperation documents, businesses incorporate dispute-resolution costs into contract design and risk management in advance rather than waiting until a dispute arises to assess litigation expenses.

• Clearly Specify Jurisdiction and Governing Law in the Contract: Avoid disputes over which country's court or which arbitral institution should handle the matter if a dispute subsequently arises.
• Retain Complete Transaction and Performance Records: These include quotations, purchase orders, payment records, shipping documents, technical documents, acceptance records, and correspondence.
• Assess Litigation and Alternative Dispute-Resolution Costs in Advance: Evaluate the suitability of litigation, mediation, or arbitration based on the amount involved, the possibility of cross-border enforcement, and the commercial relationship.
• Conduct a Legal-Risk Review Before Major Transactions: Particularly where patent licensing, trademark licensing, technology transfer, OEM/ODM cooperation, or cross-border agency or distribution is involved, ownership of rights and remedies for breach should first be confirmed.

Conclusion

Although court costs are only one component of total litigation expenses, they remain an important basis for businesses evaluating whether to initiate an action, file an appeal, or pursue provisional remedies in a cross-border commercial dispute. If businesses can reduce risk before a dispute arises through contract design, evidence management, and cost estimation, they will be better positioned to maintain control over subsequent negotiation and litigation strategies.

AIPT Group will continue to monitor developments in domestic and foreign legal systems, cross-border dispute resolution, and corporate legal practice, assisting clients in establishing a more comprehensive risk-control framework for intellectual property, international contracts, licensing transactions, and commercial disputes.

Source: Judicial Yuan｜Standards for the Collection of Fees in Civil Matters
Laws & Regulations Database of the Republic of China (Taiwan)｜Code of Civil Procedure