Measures: Article 4 of Public Welfare Lottery Issue Act of May 28, 2008
Description: The public welfare lottery shall be issued by a bank appointed by the competent authority. The term "Bank" shall mean an organization formed and registered in accordance with the provisions of the Banking Act of Taiwan (Not including a bank organized and incorporated in accordance with the laws of a foreign country, which bank has been recognized by the authorities of Taiwan and registered for business as a branch office within Taiwan, in accordance with the Company Law and the Banking Act).
18.
Sector: Recreational, Cultural and Sporting Services
Sub-Sector: Library, Archive, Museum and other Cultural Services
Industry Classification:
Provisions Concerned: Article 3 Article 7
Level of Authority: Central
Measures: Article 46 of Cultural Heritage Preservation Act of February 5, 2005 Article 10 of Regulation Governing the Excavation Requirements of Historic Site of December 30, 2005
Description: Foreigners may not investigate and excavate historical sites within Taiwan. Provided that with the prior approval by the authorities of Taiwan, foreigners may cooperate with domestic scientific research organizations or professional institutions to conduct such investigation and excavation.
Upon conducting a joint excavation project carried out by foreigners and domestic scientific research organizations or professional institutions, the representative of the domestic counterpart will invariably be the designated chief coordinator of the project. All original data thereby accumulated, such as the unearthed artifacts, etc., must be well preserved. Carrying or transporting such data abroad is strictly forbidden. Provided that with the prior approval by the authorities of Taiwan, they can be carried abroad to conduct necessary scientific analyses.
19.
Sector: Business Services
Sub-Sector: Professional Services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central and regional
Measures: Articles 24 and 25 of Notary Law of December 30, 2009 Articles 4 of the Land Administration Agent Act of June 15, 2011
Description:
1. A notary public shall be a citizen of Taiwan.
2. Only citizens of Taiwan, who has obtained the certificate of "Land Administration Agent" can act as a Land Administration Agent.
20.
Sector: Recreational, Cultural and Sporting Services
Sub-Sector: Recreational Services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Article 7 of The Statute for Investment by Foreign Nationals of November 19, 1997 Negative List for Investment by Overseas Chinese and Foreign Nationals of May 16, 2008
Description: Foreigners are not allowed to invest in entertainment establishments which offer personalized attention by a host or hostess of a sexually arousing or seductive nature. Host/hostess services in Taiwan are offered in certain types of coffee/tea shops, ballrooms, dance halls wine shops, bars, karaoke rooms, etc.
21.
Sector: Financial services
Sub-Sector: Banking and other financial services
Industry Classification:
Provisions Concerned: Article 3 Article 4
Level of Authority: Central
Measures: Article 2, 3, 5, 14, 19-1, 19-2 and 19-3 of the Regulations Governing Foreign Bank Branches and Representative Offices of December 11, 2009 Article 4 of Standards Governing the Establishment of Commercial Banks of February 4, 2010 Article 3 of Offshore Banking Act of June 9, 2010 Article 4 and 7 of the Regulation for the Implementation of Offshore Banking Act of December 2, 2003
Description: Foreign bank branches and offshore banking branches:
1. Establishment:
A foreign bank that meets the following criteria may apply for the approval for the establishment of a branch within Taiwan:
1. The bank is free of any major regulatory violation within the last five years;
2. The bank is ranked, by capital or assets, among the top five hundred banks in the world within one year prior to application, or has business dealings with the banks and/or enterprises in Taiwan in an aggregate amount of more than US$1,000,000,000 in three calendar years prior to application, of which no less than US$180,000,000 have been in the form of medium or long term credits. Where there are special provisions in an economic and trade agreement, or other written arrangement between Taiwan and the home country of the foreign bank, such special provisions shall prevail.
2. Working Capital:
A foreign bank that has been approved to establish a branch in Taiwan shall allocate a minimum operating capital of NT$250,000,000 if the bank plans to accept deposit of less than NT$1,500,000 from individuals and will have more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1% of total amount of New Taiwan Dollar (NTD) deposits accepted by the bank. A foreign bank shall allocate a minimum operating capital of NT$200,000,000 for its branch if the bank does not plan to offer retail deposit business or if its retail deposit business will not reach the thresholds set forth above.
A foreign bank stipulated in Article 3, Items 2 and 3 of the Offshore Banking Act, after having been allowed to establish an offshore banking branch, shall allocate working capital for its operation in Taiwan at a minimum amount of US$2,000,000.
Article 3 of the Offshore Banking Act
The following types of banks may, through their head offices, apply to the competent authorities for obtaining the approval of the establishment of an offshore banking branch with a separate set of accounts to conduct international banking activities:
1. Foreign banks authorized by the CBC to engage in foreign exchange businesses within Taiwan.
2. Foreign banks authorized to have a representative office in Taiwan.
3. Reputable foreign banks approved by the competent authorities.
4. Domestic banks authorized by the CBC to engage in foreign exchange businesses.
3. NTD Credit Extension:
The NTD credit that a foreign bank branch may extend to a same legal person, same concerned party or same affiliated entity shall be limited to NT$7,000,000,000 respectively or the amount calculated according to the restrictions set forth by the competent authority pursuant to Paragraph 1, Article 33-3 of the Banking Act, whichever is higher. The NTD credit that a foreign bank branch may extend to a same natural person shall be limited to NT$1,500,000,000 respectively or the amount calculated according to the restrictions set forth by the competent authority pursuant to Paragraph 1, Article 33-3 of the Banking Act, whichever is higher.
The term "net worth" calculated according to the authorization provisions that apply mutatis mutandis to the branches of foreign banks shall mean the net worth of a foreign bank branch in the previous fiscal year following final settlement of accounts.
4. Eligible Assets:
For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1% of total amount of NTD deposits accepted by the branch, such branch's total holding of eligible assets shall not be less than 40% of the total amount of NTD deposits accepted by the branch. For a foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such bank's total holding of eligible assets shall not be less than 15% of the total amount of NTD deposits accepted by the branch.
5. Financial Ratios:
For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1% of total amount of NTD deposits accepted by the bank, such branch's ratio of NTD deposits to outstanding NTD loans shall not be less than 50%.
For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1% of total amount of NTD deposits accepted by the branch, such branch's outstanding NTD loans shall not be more than twenty times the branch's net worth in the previous fiscal year following final settlement of accounts. For a foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such branch's outstanding NTD loans shall not be more than thirty times the branch's net worth in the previous fiscal year following final settlement of accounts.
For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1% of total amount of NTD deposits accepted by the branch, such branch's outstanding balance of credit extensions other than loans shall not be more than fifteen times the branch's net worth in the previous fiscal year following final settlement of accounts. For a foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such branch's outstanding balance of credit extensions other than loans shall not be more than twenty times the branch's net worth in the previous fiscal year following final settlement of accounts. foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such branch's outstanding balance of credit extensions other than loans shall not be more than twenty times the branch's net worth in the previous fiscal year following final settlement of accounts.
Foreign bank representative offices:
A foreign bank that meets the following criteria may apply to establish a representative office in Taiwan:
1. The foreign bank is free of any major regulatory violation within the last three years;
2. The foreign bank is ranked, by capital or assets, among the top one thousand banks in the world within one year prior to application, or has business dealings with the banks and enterprises of Taiwan in an aggregate amount of more than US$300,000,000 in three calendar years prior to application. Where there are special provisions in an economic and trade agreement, or other written arrangement between Taiwan and the home country of the foreign bank, such special provisions shall prevail.
Foreign bank subsidiaries:
A foreign financial institution that fulfills the following events, and merges or takes over generally the entire business, and assets and liabilities of a local bank may apply to establish a commercial bank:
1. The foreign financial institution is permitted by the competent authority for the establishment of a commercial bank according to Article 23 of the Financial Holding Company Act of Taiwan.
2. After the foreign financial institution merges or takes over generally the entire business, and assets and liabilities of a troubled financial institution, it shall, pursuant to laws and orders, an agreement(s), or a written arrangement(s) establish a commercial bank within a certain period of time.
The conditions provided to other WTO members as set out below are not applicable to this Arrangement:
1. Section C, List of the authorities of Taiwan, Annex VI of the FTA between the Republic of Panama and the authorities of Taiwan; and
2. Section B (the authorities of Taiwan), Specific Commitments, Annex 12.09.2 of the FTA between the Republic of Nicaragua and the authorities of Taiwan.
22.
Sector: Financial Services
Sub-Sector: Securities
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Article 2, 4, 10,16,17,18, 21,23 of Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals of March 23, 2006 Article35-1 of GreTai Securities Market Rules Governing Securities Trading on the GTSM of August 1, 2011
Description:
1. Overseas Chinese and foreign nationals are only allowed to invest in offshore beneficial interest certificates, domestic securities, overseas corporate bonds, overseas depositary receipts, or overseas stocks, and are not allowed to designate (trust relationship is not included) domestic securities investment consulting enterprises or securities investment trust enterprises to conduct discretionary investment services.
2. The investment scope of overseas Chinese and foreign nationals outside Taiwan shall be limited to those set forth in Article 4 of the above-mentioned Regulations. Certain industries limit the percentage of equity holdings by overseas Chinese or foreign nationals according to other applicable acts or regulations.
3. Where funds have been transferred to Taiwan for the purchase of any of the securities listed in Article 4 of the above-mentioned regulations but the funds have not yet been invested, the Financial Supervisory Commission (FSC) of the authorities of Taiwan can limit the use of such funds after consultation with the competent authority for foreign exchange business. The current limitation is 30% of total amount of the funds transferred into Taiwan.
4. An overseas Chinese or foreign national outside Taiwan invests in securities of Taiwan shall designate a custodian bank, which is approved by the FSC to offer custodial services, to act as its custodian institution and designate a local agent to apply for the opening of a New Taiwan Dollar account. The agent designated to open such account must be a securities firm or financial institution of Taiwan.
5. Besides, overseas Chinese and foreign nationals invest in securities of Taiwan shall apply to the Taiwan Stock Exchange Company (TWSE) for registration.
6. Overseas Chinese or foreign nationals outside Taiwan holding shares in a public company shall appoint an local agent or representative to exercise the voting rights and shall not deliver proxies to any solicitors of proxies or proxy agents.
7. An overseas Chinese or foreign national outside Taiwan shall not engage in securities margin trading, sell securities which it does not hold, extend loans or provide collateral, or entrust custody of securities to any legal person or individual other than a custodian institution or centralized securities depository.
8. The FSC may, when necessary, require an overseas Chinese or foreign national outside Taiwan to submit a list of beneficiary of the investment capital, the amount of the capital, its source, and related information.
9. Overseas Chinese or foreign nationals invest in the OTC market, if any such securities are subject to investment holding ratio set by the respective competent authorities for the relevant industries, they shall be traded through the OTC central trading systems, instead of negotiating price privately.
23.
Sector: Financial Services
Sub-Sector: Securities firms and securities services enterprises
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Article 28, 29 and 33-1 of Standards Governing the Establishment of Securities Firms of June 16, 2009
Description: A foreign securities firms establishing a branch office in Taiwan shall meet the following requirements:
1. The applicant possesses sufficient international securities business experience and financial health in the business type being applied for;
2. The applicant has not been sanctioned administratively by its home country's securities regulatory authorities within the most recent two years.
A foreign securities firm applying for the establishment of a branch office within Taiwan should deposit operating capital which shall not be less than specific amount of related regulations.
A foreign securities firm intending to establish a representative office in Taiwan shall meet the following qualifications:
1. The applicant possesses sufficient experience in international securities business;
2. The applicant has not been sanctioned suspension of business or more severe penalty administratively by its home country's securities regulatory authorities within the most recent year.
24.
Sector: Financial Services
Sub-Sector: Futures
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Directions for Futures Trading by Overseas Chinese and Foreign Nationals of September 21, 2010
Description: An overseas Chinese or foreign national when engaging in futures trading shall:
1. Apply to the Taiwan Futures Exchange (TAIFEX) or the Taiwan Stock Exchange Corporation (TWSE) of Taiwan and submit relevant documents for registration;
2. Mandate an agent or representative within Taiwan to open an account, exercise rights, apply for foreign exchange settlement, file and pay taxes on his or her behalf;
3. Appoint a bank approved by the FSC to provide custodial services, to act as its custodian institution, to handle matters related to futures trading, such as clearing, settlement and reporting of relevant information;
4. An overseas Chinese or foreign national outside Taiwan that makes domestic futures trades shall do so in foreign currencies approved by TAIFEX of Taiwan, and may not convert the funds into New Taiwan Dollars; the balance in New Taiwan Dollars resulting from the cumulative realized New Taiwan Dollar profits gained from futures trading may not exceed NT$300 million for any individual trader or any individual omnibus account. If the limit set forth is exceeded, the agent of the overseas Chinese or foreign national shall appoint a futures commission merchant within five business days to make a conversion into US dollars. An overseas Chinese or foreign national outside Taiwan that engages in foreign futures trades shall do so in a foreign currency and may not convert the funds into New Taiwan Dollars.
25.
Sector: Financial Services
Sub-Sector: Futures commission merchants and futures services enterprises
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Article 19, 20 and 40 of Standards Governing the Establishment of Futures Commission Merchants of October 2, 2007
Description: A foreign futures commission merchant establishing a branch office in Taiwan shall meet the following requirements:
1. Qualified to be a clearing member of a foreign futures exchange that has been publicly announced by the FSC of Taiwan.
2. The applicant possesses international futures business experience in the type of business for which approval is being requested, and is of sound financial standing.
3. Within the previous year, it has not been punished in its home jurisdiction by the relevant futures regulatory authority, or by a self-regulatory organization.
A foreign futures commission merchant, a foreign securities firm or a foreign banking institution shall, in accordance with the type of business approval it is seeking, allocate the specified amount for operational use by its business office in Taiwan.
The FSC has not allowed foreign futures advisory enterprises, foreign managed futures enterprises (e.g. CTA in Japan) and foreign futures trust enterprises (e.g., CPO in Japan) or foreign futures fund management companies to establish a branch in Taiwan.
The FSC has not allowed foreign futures fund management companies to raise a futures (trust) fund in Taiwan.
26.
Sector: Financial Services
Sub-Sector: Insurance and insurance related services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority: Central
Measures: Article 6, 7 and 27-1 of the Regulations for Establishment and Administration of Foreign Insurance Enterprises of February 23, 2009
Description:
• branch
A foreign insurance institution applying for permission to establish a branch within Taiwan to conduct insurance business shall at least meet the following criteria:
1. Having had sound business performance and shown financial soundness in the most recent three years; and
2. Free of any record of penalty against it for material regulatory violation in the last three years as proven by a certificate issued by the competent authorities in the applicant's home country. Where the applicant has been established for less than three years, the applicant must be free of any record of penalty against it for material regulatory violation since its establishment.
Where a foreign insurance institution referred to in subparagraph 1 of the preceding paragraph has been established for less than three years, the institution must have a representative office set up within Taiwan for at least one year and meet one of the following criteria:
1. Having a paid-in capital of more than NT$2 billion.
2. Having a credit rating of at least A-from Standard & Poor's Corp., at least A3 from Moody's Investor Service, at least A from Fitch Ratings Ltd., at least twA+ from Taiwan Ratings Corporation, or an equivalent rating or better from any other credit rating agency recognized by the competent authorities.
The head office of a foreign insurance enterprise shall set aside minimum working capital for each branch in accordance with its business plan, amounting to not less than NT$50 million, and post bond with the treasury authority in an amount equal to 15 percent of its working capital.
• representative office
A foreign insurance institution applying for permission to set up a representative office within Taiwan shall at least meet the following criteria:
1. Having a credit rating of at least A-from Standard & Poor's Corp., at least A3 from Moody's Investor Service, at least A from Fitch Ratings Ltd., at least twA+ from Taiwan Ratings Corporation, or an equivalent rating or better from any other credit rating agency recognized by the competent authorities; and
2. Free of any record of penalty against it for material regulatory violation in the most recent three years as proven by a certificate issued by the competent authorities in the applicant's home country. Where the applicant has been established for less than three years, the applicant must be free of any record of penalty against it for material regulatory violation since its establishment.
A foreign insurance institution may set up only one representative office in Taiwan.
27.
Sector: Financial Services