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You certainly can get pre-paid cellphones in Taiwan, although it will be cheaper to get a contract. The documentation you'll need depends on the company, but generally you'll just need your ARC card. If you don't have one (if you're not a resident) then I'd say just use Skype. In fact, with Taiwan's fast and reliable internet, that may be the best/cheapest option anyway.
Take a look at Keeping in Touch in Taiwan for more information.