The Ministry of Finance has amended penalty regulations to encourage Reporting Financial Institutions to comply with the Common Reporting Standard.
Taiwan’s Ministry of Finance (MOF) announced, on 24 December 2025, amendments to Article 2-1 and Article 2-2 of the Standards for the Exemption of Penalties for Misconduct in Taxation Affairs, along with updates to the Reference Table for Fines and Multiples of Punishments under Article 46-1 of the Tax Collection Act.
The changes aim to ease penalty conditions and establish clearer, proportionate benchmarks to support compliance by Reporting Financial Institutions (RFIs).
Taiwan adopted the Common Reporting Standard (CRS) in 2017 under paragraph 6 of Article 5-1 of the Tax Collection Act. Since 2021, the National Taxation Bureaus (NTBs) have been responsible for examining RFIs’ compliance, conducting both documentary and on-site reviews. Drawing on this experience, the MOF has introduced measures to relax existing rules, including:
- Erroneous or limited non-reporting: Full penalty exemptions if errors are voluntarily corrected before NTB notification.
- Due diligence lapses: Exemptions provided RFIs complete the required procedures and reporting before NTB notification.
- First-time violations: Exemptions apply even if violations are confirmed, provided RFIs cooperate in correcting the issues.
- Updated penalty reference table: Adjustments ensure penalties are transparent, reasonable, and proportionate.
The amendments take effect on 26 December 2025.
Cases with pending final decisions on violations occurring before the effective date will follow the amended provisions, unless the previous rules are more favorable to the RFIs.
