萬國法律事務所

The Ministry of Finance and Financial Supervisory Commission (FSC) recently reached a preliminary agreement that in the future, securities dealers engaging in Offshore Security Units (OSU) will be entitled to claim exemption from the income tax, business tax and stamp duty concessions just as Offshore Banking Units (OBU). Securities dealers will be able to establish international securities business branches for overseas business. It is estimated that this will stimulate a substantial number of business opportunities for securities dealers.

The Ministry of Finance has indicated that tax breaks for securities dealers can attract investment and increase business and that for this reason it is pushing the tax breaks in order to facilitate industrial development. The FSC chairman stated that Offshore Banking Units had a total profit this year of TWD 40 billion, which is a record high. He believes that allowing Offshore Security Units the same tax exemptions will result in similar significant benefits to securities dealers.

The FSC will propose to amend the Offshore Banking Act to allow securities dealers to engage in offshore business. However, it is difficult to predict when exactly the Offshore Banking Act will become applicable.