{"id":27103,"date":"2019-08-30T00:42:27","date_gmt":"2019-08-30T00:42:27","guid":{"rendered":"http:\/\/asiallians.com\/zh-hant\/taiwan-legal-updatetaiwan-thailand-ink-business-mous-bangkok-constitutional-court-ruling-pension-amendments\/"},"modified":"2019-09-06T08:02:15","modified_gmt":"2019-09-06T08:02:15","slug":"taiwan-legal-updatetaiwan-thailand-ink-business-mous-bangkok-constitutional-court-ruling-pension-amendments","status":"publish","type":"post","link":"https:\/\/asiallians.com\/zh-hant\/taiwan-legal-updatetaiwan-thailand-ink-business-mous-bangkok-constitutional-court-ruling-pension-amendments\/","title":{"rendered":"Taiwan Legal Update:The Repatriation of Overseas Taiwanese Businesses"},"content":{"rendered":"

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”center” background_image_as_pattern=”without_pattern” padding_top=”50″ padding_bottom=”50″ css_animation=””][vc_column css=”.vc_custom_1517373139965{background-image: url(http:\/\/asiallians.com\/wp-content\/uploads\/2018\/01\/Picture1.png?id=18554) !important;}”][vc_empty_space][vc_column_text] The Repatriation of Overseas Taiwanese Businesses<\/span><\/strong>[\/vc_column_text][vc_empty_space height=”70px”][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” padding_bottom=”100″ css_animation=””][vc_column][vc_column_text]<\/p>\n\n\n\n
On the 3rd of July, the Legislative Yuan finalized readings of a bill on the repatriation, use and taxation of overseas funds. The bill incentivizes and rewards Taiwanese companies and investors to return and invest in Taiwan.<\/p>\n

The Ministry of Finance[1]<\/a>\u00a0outlines the key provisions as follows:<\/p>\n

Scope<\/strong><\/p>\n

a. Individuals can repatriate funds from abroad (including from the People\u2019s Republic of China)<\/p>\n

b. The investment income from profit-making enterprises that have been transferred and remitted from overseas (including the People\u2019s Republic of China) with its control ability or significant influence.<\/p>\n

 <\/p>\n

Applicable Principles\u00a0<\/strong><\/p>\n

a. Companies and individuals can elect to be taxed under the provisions of this Bill. Those who choose to do so shall be exempted from the basic tax and income tax[2]<\/a>, the People’s Relations Regulations of Taiwan and the Mainland and the Income Tax Law. This election is, however, irreversible.<\/p>\n

b. The implementation of the Bill shall comply with the Money Laundering Prevention Act, the Danger Prevention and Control Act and related laws and regulations.\u00a0Several bodies of the government\u00a0have agreed to ensure that this standard is upheld.<\/p>\n

 <\/p>\n

Application Procedures\u00a0<\/strong><\/p>\n

To register, one must apply to the competent authority, who will then conduct preliminary examinations on the applicable requirements and contact the relevant bank for review[3]<\/a>. Upon successful application, the applicant will then open a \u201cForeign Capital Foreign Exchange Deposit Account\u00a0\u201d and remit the tax incentive into the account.<\/p>\n

 <\/p>\n

Restrictions on capital use<\/strong><\/p>\n

1. Remittance funds shall not be used for the purchase of real estate and the beneficiary securities issued or delivered under the Real Estate Securitization Ordinance. Unless one gains approval from the Ministry of Economic Affairs to allow for the construction or purchase of buildings for self-production or business use.<\/p>\n

2. The repatriation of overseas funds must be deposited in the \u201cForeign Capital Foreign Exchange Deposit Account\u201d and ought to be managed in the following ways:<\/p>\n

\u00a0<\/em><\/p>\n

a. Substantial investment: Direct investment in the industry or investment in key policy industries through venture capital or private equity funds approved by the Ministry of Economic Affairs<\/p>\n

b. Free use: 5% limit<\/p>\n

c. Financial investment: 25% limit<\/p>\n

Thus, funds for free use and a substantial investment, financial investment and any remaining funds not engaged in the investment shall be deposited into the \u201cForeign Capital Foreign Exchange Deposit Account\u201d for 5 years.<\/p>\n

Applicable tax rate<\/strong><\/p>\n

a. General tax rate: The tax will be deducted from the receiving bank when the funds are remitted to the foreign exchange deposit account. The repatriation rate is 8% in the first year and 10% in the second year.<\/p>\n

b. Preferential tax rate: The actual investment is completed within the prescribed time limit, and the Ministry of Economic Affairs shall issue a certificate of completion of the issuance and may apply to the collection authority for a refund of 50% of the tax (i.e., the actual tax rate is 4% or 5%).<\/p>\n

c. The following cases are not managed according to the regulations, and the different tax shall be paid at the rate of 20%:<\/p>\n

i. In violation of the regulations, the funds shall be withdrawn from the special account of foreign exchange \u00a0\u00a0\u00a0\u00a0deposits, trust account or securities.<\/p>\n

ii. In violation of the regulations, the funds are used for other purposes or as a basis for quality loans, guarantees or otherwise reduce their value.<\/p>\n

iii. Violation of regulations for the purchase of Real Estate.<\/p>\n

 <\/p>\n

Additional Mechanisms\u00a0<\/strong><\/p>\n

During the period of the actual investment, the individual or the profit-making enterprise shall report the investment to the economy yearly. For future reference, the receiving bank shall report the use of funds within the special account to the Ministry of Finance and the Financial Management Committee for reference yearly.<\/p>\n

Implementation period:<\/strong>\u00a0Following the implementation of these Regulations, the Executive Yuan must verify the date of implementation of the profit-making business and individual CFC system within a year. All funds remitted within\u00a02 years<\/strong>\u00a0of the implementation of these Regulations shall be subject to the provisions of these Regulations.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(MORE INFORMATION<\/a>)<\/p>\n

\n

Feel free to contact asiallians@asiallians.com<\/strong><\/a> for more information.<\/p>\n

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On November 11th, 2015, the sales volume of Taobao (a B2C platform owned by Alibaba Group) reached CNY 91.2 billion (around 14 billion USD), with around 680 million online deals completed and the packages delivered all across the country.<\/p>\n","protected":false},"author":5,"featured_media":20948,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[171],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n\t\n\t\n