Thu, Jul 04, 2019 - Page 11 News List

Repatriation bill passes readings

By Crystal Hsu  /  Staff reporter

The Legislative Yuan yesterday completed the final readings of a bill on rules to encourage capital repatriation as a US-China trade dispute drags on and some local firms plan to return home.

The rules on the repatriation, use and taxation of offshore assets owned by individuals and companies require that repatriated assets be deposited in special accounts at local banks, the act says.

The tax rate for such assets would be 8 percent and account owners may apply for a 4 percent tax return after making good on their investment plans, it says.

The tax rate rises to 10 percent in the second year, with a 5 percent tax return after the realization of investment plans, it adds, compared with corporate income tax rates of 20 percent.

The legislation came after the US raised tariffs on Chinese goods to address bilateral trade imbalances.

Many Taiwanese firms with manufacturing facilities in China have been seeking to relocate to avoid the punitive tariffs.

The preferential tax rates are part of incentives by the government to help overseas Taiwanese businesses rebalance their international investments and attract them to return to Taiwan.

The new rules ban repatriated assets from being used to buy properties or securitized real-estate products, although up to 25 percent may be invested in financial investment tools, in addition to 5 percent at their own disposal.

Investment applications must be filed for repatriated assets within the first year after their deposit in a special account, the bill says.

Failure to comply with investment plans, which also have to meet money laundering and anti-terrorism financing rules, would subject repatriated assets to a 20 percent tax rate, it says.

Tightening international disclosure requirements are also driving offshore assets back to Taiwan, accounting firms have said.

This story has been viewed 1722 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top