2019-07-29

Ministry of Finance Provides Consultation for Repatriation of Offshore Funds

According to the Political Deputy Minister of Taiwan’s Ministry of Finance (MOF), the MOF provides three methods of assistance for the repatriation of offshore funds for Taiwanese business persons.  The first method is to provide customized services regarding taxation. Taiwanese business persons can anonymously receive consultation regarding tax issues, and the information provided by the MOF will not be forwarded to or made accessible to the National Tax Administration.  The second method of assistance is to provide interpretations, which expressly explain what categories of the repatriation of offshore funds will not trigger tax liability.  Such interpretations help to distinguish the categories of funds and to decrease uncertainty regarding tax liability.  Third, the “Statute for Repatriation, Management, Utilization, and Taxation of Offshore Funds” was promulgated by the President on 24 July 2019 to provide related regulations governing the repatriation of offshore funds from Taiwanese business persons.
 
The MOF's Political Deputy Minister also emphasized that certain sources of repatriations of offshore funds draw the attention of money laundering organizations.  Thus, Taiwan's MOF reported to the Asia/Pacific Group on Money Laundering in March 2019, and has received a response stating that Taiwan’s regulations aimed at preventing money laundering are sufficiently comprehensive to allay concerns regarding money laundering.
 
Since tax anti-avoidance has become an international trend in recent years, The MOF's Political Deputy Minister recommends that Taiwanese business persons consider the adjustment of investments and the methods of global layout carefully to avoid the risk of tax liability. 
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