On 11 April 2019, the Cabinet of Taiwan approved a draft bill regarding the repatriation, use and taxation of offshore installations. The bill now goes to the legislature for review and debate.
The draft bill clarifies that repatriated assets must be deposited into special finance accounts, and in principle may not be used to purchase real estate. In the first year following the bill’s provisions going into effect, repatriated funds are subject to a preferential tax rate of 8%. In the second year, the rate rises to 10%. In cases where the assets are applied directly to a tangible local investment, the government will refund half of any taxes assessed.
In Taiwan to be worthy, the approved industries must use at least 70% of repatriated funds for tangible local investment, where 25% may be used for financial investment and up to 5% may be used for other purposes and the reduced rates will not apply for repatriated funds designed for investment in real estate.
