萬國法律事務所

Taiwan's Executive Yuan announced on 11 April 2019 that it has drafted a bill titled "Management, Utilization, and Taxation of Repatriation of Offshore Funds Act" to encourage the repatriation of offshore funds.  Pursuant to the bill, repatriated funds will be eligible for a preferential tax rate in the first two years, but will not be allowed to invest in real estate or REITs (Real Estate Investment Trusts).  The bill will now go to the Legislature for legislation process.
 
If enacted, repatriated funds will be subject to a preferential tax rate of 8% in the first year and 10% in the second year.  In addition, the tax rates will be further reduced to 4% in the first year and 5% in the second year if repatriated funds are applied directly to local investments within the specified period of time.
 
To ensure that repatriated funds will be used appropriately, up to 25% will be permitted for financial investments but up to 5% only will be allowed for discretionary uses.  However, as indicated above, such repatriated funds cannot be invested in real estate or REITs (except shares of construction industry).
 
Additionally, in order to prevent repatriated funds from being used in contests for corporate control, within the permitted scope of financial investments, the investing amount in one single share and the total ratio of investments in total shares will also be limited.