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The NW moving Philippine Sea plate (PSP) collides with the Eurasian plate (EUP) in the vicinity of Taiwan, and at the same time, it subducts toward the north along SW Ryukyu. The Ryukyu subduction zone terminates against eastern Taiwan. While the Ryukyu Trench is a linear bathymetric low about 100 km east of Taiwan, closer to Taiwan, it cannot be clearly identified bathymetrically owing to the deformation related to the collision, making the location of the intersection of the Ryukyu with Taiwan difficult to decipher. We propose a model for this complex of boundaries on the basis of seismicity and 3-D velocity structures. In this model the intersection is placed at the latitude of about 23.7°N, placing the northern part of the Coastal Range on EUP. As PSP gets deeper along the subduction zone it collides with EUP on the Taiwan side only where they are in direct contact. Thus, the Eurasian plate on the Taiwan side is being pushed and compressed by the NW moving Philippine Sea plate, at increasing depth toward the north. Offshore of northeastern Taiwan the wedge-shaped EUP on top of the Ryukyu subducting plate is connected to the EUP on the Ryukyu side and coupled to the NW moving PSP by friction at the plate interface. The two sides of the EUP above the western end of the subduction zone are not subjected to the same forces, and a difference in motions can be expected. The deformation of Taiwan as revealed by continuous GPS measurements, geodetic movement along the east coast of Taiwan, and the formation of the Hoping Basin can be understood in terms of the proposed model.