萬國法律事務所

It is reported that a bill has been prepared by the Financial Supervisory Commission, Executive Yuan, to amend the Financial Service Institution Act to the effect that an immigrant investor, whose total investment exceeds the prescribed threshold amount, may in the future apply for the resident permit or even the permanent resident permit irrespective of whether he/she has stayed in Taiwan for more than 183 days each year. Such regulation will provide tax incentives for the immigrant investor. Under the prevailing tax legislation, a foreigner who stays in Taiwan for more than 183 days a year would be obliged to pay income tax on any and all his/her revenue generated onshore and offshore. Under the immigration bill, a qualified immigrant investor will be granted a Taiwanese resident certificate without paying any income tax on his/her revenue generated offshore provided that he/she does not stay in Taiwan for 183 consecutive days.

The bill will further allow Taiwanese citizens to open an account for oversea capital in the offshore banking unit (OBU) of a Taiwanese bank. As the interests generated by the capital in such OBU may be exempt from income tax, FSC expects that the new policy will attract Taiwanese citizens to repatriate their oversea capital back to Taiwan.