Regulations on Industries Investment from Repatriated Offshore Funds announced
- Published at: 2019-08-27 11:15
- Last modified at: 2019-08-27 11:35
To attract offshore funds towards domestic financial market and industries, Taiwan’s Ministry of Finance established The Management, Utilization, and Taxation of Repatriated Offshore Funds Act, which announced on July 24th, 2019, was entered into forced by the Executive Yuan on August 15th, and will be in operation for the coming two years. According to the 7th and 8th sections under this Act, the Ministry of Economic Affairs has drawn up the Regulations on Industries Investment from Repatriated Offshore Funds, which was authorized by the Executive Yuan along with the Act on August 15th.
Taiwan’s Ministry of Economic Affairs stated that, after the joint inspection of personal and corporate offshore funds by both the National Tax Administration and domestic commercial banks, the repatriation fund should be stored in foreign exchange deposits for offshore funds only, and should be submitted for direct or indirect investment plan within one year. After approval, one may begin withdrawing from the deposit for the investment plan. Those who complete the investment within the prescribed time limit and obtain the certificate of completion issued by the Ministry of Economic Affairs may apply the preferential tax rate of 4% or 5% and apply for a refund of 50% of the tax.
If the fund is used for other things that are not in the plan, no review is made during the investment period and no reimbursement issued after the notice, or if the fund is not used as scheduled, or not fully used due to the fact that the remaining part is not returned, etc., the tax rate will return to 20 percent, and the taxes that have not been turned in will have to be recovered.
With the enforcement of this Act and regulations, the Ministry of Economic Affairs will hold seminars together with the Ministry of Finance and the Financial Supervisory Commission in order to give people a better understanding of the government’s new policies and applications.
- Contact Organization:Industrial Policy Division, Industrial Development Bureau, Ministry of Economic Affairs
- Contact Person:Mr. Chou
- Contact Phone:(02)2754-1255 ext. 2601