Under Article 6 of Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals (the “Regulations”), a foreign institutional investor (FINI), who has no fixed place of business or a business agent in Taiwan, investing in securities under the Regulations should appoint a tax agent in Taiwan.  The duties of the tax agent are to review the FINI’s investment accounts and ascertain whether the FINI clears all taxes in Taiwan before the earnings are repatriated.  

 

If the FINI engages in more than regular security buy-sell transactions, such as bond transactions, foreign currency transactions or security borrowing/lending (SBL), the tax agent may need to further evaluate the complexity of the transactions and file the return on behalf of the FINI when necessary.

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If the FINI is registered or established in a country who has a tax treaty with Taiwan, there may be possibilities to reduce tax payable or claim a tax refund.

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