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Labor
1. Amendment to Gender Equality Employment Act
The Legislative Yuan passed the three readings of the amendment to the "Gender Equality Employment Act" on May 30, 2014. Please refer to the alert sheet for more details (http://www.lexgroup.com.tw/en_in_news.php?n_type=1&sn=146).
Reported by: David Tsai / Robin Huang
2. Amendment to Article 32 of Labor Insurance Act
On May 28, 2014, the President promulgated an amendment of Article 32 of the Labor Insurance Act. The key points are summarized below:
(1) The maternity allowance lump sum is raised from 30 days to 60 days of average monthly salary.
(2) In case of multiple births or premature labor, the maternity allowance shall be increased proportionately.
(3) If an insured person simultaneously fulfills the application conditions for social insurance regarding maternity allowances for public servants, military personnel and teachers, the applicant may only apply for one of them. The only exception is for farmers.
Reported by: David Tsai / Robin Huang
3. Amendment to Implementation Rule of Holidays and Festivals
On June 11, 2014, the Ministry of the Interior announced the amendment of Article 5-1 of the "Implementation Rule of Holidays and Festivals" stating that holidays and festivals shall be compensated when they fall on a regular day off. If the regular day off is a Saturday, the compensated leave shall be the preceding working day. If the regular day off is a Sunday, the compensated leave shall be the next working day. However, if Lunar New Year's Eve and New Year Festival fall on Saturday or Sunday, they shall be compensated the next working day. This amendment will be enforced from January 1, 2014.
Reported by: David Tsai / Robin Huang
4. Increase of Deduction rates on Part-Time Job Income for National Health Insurance
On June 11, 2014, the Ministry of Health and Welfare announced a draft amendment to the "Regulations Governing the Deduction and Payment of Supplementary Insurance Premiums for National Health Insurance", to increase deduction rates for part-time job income from NT$ 5,000 to minimum wage level.
Reported by: David Tsai / Robin Huang
5. Determined Standard and Review Rule to Prevent Harm to Mental and Physical Health, Article 45 of Labor Standards Act
On June 11, 2014, the Ministry of Health and Welfare announced the "Determined Standard and Review Rule to Prevent Harm to Mental and Physical Health, Article 45 of Labor Standards Act" ("Rule"), for employers hiring individuals yet to graduate from junior high school and under the age of 15 or labor service receivers employing persons under the age of 15 ("Worker"). Approval for such workers must now be obtained. The Rule lists restrictions on the type of labor such workers can undertake and places limits on working hours. Employers and labor service receivers shall provide labor, health or commercial insurance for workers dependent on circumstances.
Reported by: David Tsai / Robin Huang
Banking
6. Amendment to the Financial Consumer Protection Act
The President announced an amendment to the "Financial Consumer Protection Act" on June 4, 2014. We summarize the key points below:
(1) If financial products or services provided by financial institutions are trusts or mandates, the financial institutions shall undertake the fiduciary duty in accordance with relevant laws or contracts.
(2) Financial institutions shall fully explain relevant rights to financial consumers when collecting, processing and using the personal information of such consumers. Financial institutions may not refuse to extend credit solely because financial consumers refuse to authorize such an institution to check their credit information.
Reported by: Stacy Lo / Angela Lin
Tax
7. Amendments to the Tax Collection Act and Value-added and Non-value-added Business Tax Act
The President announced amendments to the Tax Collection Act and Value-added and Non-value-added Business Tax Act on June 4, 2014. We summarize the key point below:
(1) Tax Collection Act: If a profit-seeking enterprise fails to keep accounting certificates as required by law, but is not involved in tax evasion, and the original certificates or evidence equivalent to the original certificates can be submitted, the profit-seeking enterprise can be exempted from punishments and criminal liability.
(2) Value-added and Non-value-added Business Tax Act: This amendment is related to the increase of business tax rate for banks and insurance companies engaging in their exclusive business, and the effective date will be stipulated by the Executive Yuan. Please refer to the alert sheet on May 20 for more details (http://www.lexgroup.com.tw/in_news.php?n_type=1&sn=139).
The Ministry of Finance further announced a draft "Regulations Governing the Scope of Exclusive Business Income for Banks and Insurance Companies" ("Regulation") on June 4, 2014. This Regulation is to coordinate with the amendment to the Value-added and Non-value-added Business Tax Act and act as the basis of taxation for the exclusive business of banks and insurance companies.
Reported by: Stacy Lo / Mark Chen
Accounting
8. Amendment of Business Entity Accounting Act
The Legislative Yuan passed amendments to the "Business Entity Accounting Act" on May 30, 2014. We summarize the key points below:
(1) The relevant accounting terms and regulations of the account categories as well as the calculation of gain or loss are amended in accordance with the IFRS.
(2) The maximum extension period for closing accounts is amended from one and a half months to two and a half months.
(3) The amendments will take effect from January 1, 2016. However, given the needs of non-public subsidiaries of listed companies or companies trading on the GreTai Securities Market to produce consolidated financial statements, businesses may choose to subject the 2014 accounting year to the amendments in advance.
Reported by: Stacy Lo / Angela Lin
Epidemic Prevention
9. Amendment of the Statute for Prevention and Control of Infectious Animal Disease
On June 4, 2014, the President announced an Amendment of the "Statute for Prevention and Control of Infectious Animal Disease." The Amendment strengthens epidemic prevention measures for major zoonotic diseases such as Avian Influenza by stipulating that the response mechanisms for type A animal diseases also apply to a type B animal disease which is a major zoonotic disease.
Reported by: Jolene Wang / Crick Liang
Food and Drugs Administration
10. Draft Amendment of Guidelines on Drug Review and Approval, Article 38-1
On June 12, 2014, the Ministry of Health and Welfare announced a draft amendment of Guidelines on Drug Review and Approval, Article 38-1. In terms of applications for NCE (New Chemical Entity) drugs, if non-CCP (Certificate of Pharmaceutical Product) approval pathway is adopted, a certificate of GLP (Good Laboratory Practice) should also be submitted in addition to the original requirements.
Reported by: Jolene Wang / Brendan Lin
SICE
11. Amendments to Guidelines for Conduct of Business Personnel of Securities Investment Consulting Enterprises
On June 9, 2014, the Securities Investment Trust and Consulting Association ("SITCA") announced an amendment to the Guidelines for Conduct of Business Personnel of Securities Investment Consulting Enterprises ("Guidelines") (Ref. No.:Zhong-Xin-Gu-Zi-1030051144). The new Article 24-1 of the Guidelines provides that a securities investment consulting enterprise ("SICE") must establish an internal control mechanism to govern marketing activities via e-mail, BBS, and websites (e.g. blogs and Facebook) by its business personnel. In addition, advertisements posted on such platforms shall be limited to those approved by the appropriate supervisors (e.g. compliance or auditors) of the SICE.
Reported by: Jeffrey Liu / Judy Tai
Securities
12. Amendments to Regulations Governing the Offering and Issuance of Securities by Securities Issuers
The Financial Supervisory Commission ("FSC") has amended Regulations Governing the Offering and Issuance of Securities Issuers. Please refer to details of the amendments in point seven, Issue No. 199 of the Lexgroup Newsletter, which previously explained the draft amendment.
Reported by: Kang-Shen Liu / Jenny Chang
SITE Fund
13. Draft Amendments to "Regulations Governing Securities Investment Trust Funds"
On June 6, 2014, the FSC announced draft amendments to the "Regulations Governing Securities Investment Trust Funds". The amendments aim to allow consulting enterprises for securities investment to offer and issue leveraged ETFs and inverse ETFs, thereby providing diversified financial instruments to investors.
Reported by: Jeffrey Liu / Judy Tai
Telecommunications
14. Draft amendment of "Regulations Governing Type II Telecommunications Business"
The National Communications Commission ("NCC") announced the draft amendment of the "Regulations Governing Type II Telecommunications Business" on June 10, 2014. We summarize the key points below:
(1) Type II Telecommunications Businesses dealing with matters of national or communications security shall submit certificated documents of communications security when applying for operational licenses.
(2) The regulation of communications security management is provided for.
(3) When Type II Telecommunications Businesses outsource information software design or system maintenance and operation, the business shall file to the NCC for records, and shall fully monitor and make records of the whole operation process.
Reported by: Stacy Lo / Angela Lin
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2014-06-24
