萬國法律事務所

The Ministry of Economic Affairs’ Investment Commission (“IC”) recently called a meeting with relevant governmental agencies where it was decided to allow foreign and overseas Chinese investors to put up New Taiwan Dollar loans from domestic banks as capital.  As soon as the necessary administrative measures are solved, this new relaxation will be implemented to encourage foreign investors to import industrial technology and management methods and increase economic development.

The IC noted that, according to Article 6 of the Statute for Investment by Overseas Chinese and Statute for Investment by Foreign Nationals, foreign and overseas Chinese investors are permitted to provide investment capital in the form of foreign currency or New Taiwan Dollars obtained within Taiwan.  This would include wages, stock dividends, cash received as the result of a reduction of capital by a domestically invested enterprise, the sale of domestic assets, gifts, and employee bonuses, etc..  Investment in the form of Secured NT Dollar loans from domestic banks is still not permitted.

After receiving the recommendations of the various agencies, the IC decided to add secured NT dollar loans that were granted by domestic banks to the types of NT dollar investment capital allowed.  They revised the relevant application procedures accordingly.  The following are important parts of the noted change:

• Secured New Taiwan Dollar loans from domestic banks are added to the types of capital contribution included in NT Dollar investments. The documents that must accompany the investment application include the CPA-certified operating plan of the invested enterprise, and a draft loan contract.

• If the investor is a foreign juridical person, a statement must be included to the effect that the investor is a company with actual business activities or a multinational company.

• If the amount of NT Dollar investment is excessively large, requiring the investor to submit regular CPA-certified financial reports regarding the invested enterprise to the Investment Commission will strengthen follow-up management.