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Protection and Service
1. Stalking and Harassment Prevention Act
On 1 December 2021, the President announced the Stalking and Harassment Prevention Act (Act) which will be enacted six months after the announcement. We summarize below:
(1) The act of stalking and harassment refers to the use of personnel, vehicles, tools, equipment, electronic communications, internet or other methods to repeatedly or continuously perform the behaviors involving in the sex or gender to a certain person against his/her will, causes terrified emotions to him/her and then effects his/her daily life or social activities.
(2) It provides that the police agency shall promptly proceed the investigations to issue written warnings and take appropriate protective measures.
(3) It provides the criminal penalty for the violation of the court protection order against the offender.
(4) The court trial under the Act shall not be publicly disclosed.
(5) The court may adopt the preventive detention against the offender.
Reported by: David Tsai / Hazel Wei
Company Act
2. Amendment to Article 172-2 and Article 356-8 of the Company Act
On 14 December 2021, the Legislative Yuan passed the amendment to Article 172-2 and Article 356-8 of the Company Act that in case of an act of God, accident and disaster or other force majeure events, the competent central authority may allow a non-public company or close-end company to hold a shareholders' meeting through video conference or other means in a specific period of time announced without explicitly written in its Articles of Incorporation. This would enable the flexible operation of the company and protect the shareholder's right to participate in the shareholders' meeting. The amendment will become effective after an announcement by the President.
Reported by: Mike Lu / Henry Ku
3. Upload electronic manual for shareholders' meeting proceedings
Oo 9 December 2021, the Financial Supervisory Commission (FSC) announced an amendment to Regulations for Shareholders' Meeting Handbook and Matters to be Followed. The major change requires that, for a listing or OTC traded company having paid-in capital of NTD 10 billion or more as of the end of it most recent fiscal year or have foreigner/mainland China investors holding 30% or more of shares recorded in the shareholders' roster for the most recent fiscal year in which a shareholders' meeting is held, the electronic files of the shareholders' meeting handbook and relevant meeting materials shall be updated to the designated information reporting website 30 days before the general shareholders' meeting.
Reported by：Mike Lu/ Nora Hsu
Code of Civil Procedure
4. Amendment to Code of Civil Procedure
On 8 December 2021, the President announced the amendment to the Code of Civil Procedure, where Articles 182-1, 249 and 469 were amended and Articles 31-1 to 31-3 were deleted. The amendment will take effect from 4 January, 2022.
The main purpose of the amendment is to consolidate the previous relevant articles related to the court’s jurisdiction into the Court Organization Act, and to align the languages with the Court Organization Act.
Reported by: David Tsai / Alex Li
Administrative Litigation Act
5. Amendment and deletion of Administrative Litigation Act
On 8 December 2021, the President announced the amendment to the Administrative Litigation Act (Act), where Articles 107, 243, and 259 were amended and Articles 12-1 to 12-5 and 178 were deleted, which will take effect on 4 January 2022 specified by Judicial Yuan.
The main purpose of the amendments and the deletions of the Administrative Litigation Act is to amend and consolidate the previous relevant articles related to the court’s jurisdiction into the Court Organization Act, and to align the languages with the Court Organization Act.
Reported by: David Tsai / Lia Wang
Land Act
6. Amendment to Land Act
On 8 December 2021, the President announced the amendments to Article 219-1 of the Land Act (LA), which provides that the competent authority shall periodically inform or publicly announce the usage of the expropriated land, so that the original owner of such land may exercise his/her/its right of redemption under Paragraph 1, Article 219 of the LA in due course.
Reported by: Kang-Shen Liu / Alex Li
Taxation
7. 0% VAT Rate Applicable to Electronic Data Hosting Services Provided to Foreign Enterprises
On 1 December 2021, the Ministry of Finance issued a ruling to provide that electronic data hosting services provided by business entities to foreign enterprises, agencies, groups, and organizations having no fixed business premises in Taiwan constitute services provided in Taiwan but used in a foreign country and thus 0% VAT rate is applicable to relevant incomes according to Paragraph 2, Article 11 of the Value-added and Non-value-added Business Tax Act.
Reported by: Stacy Lo / Rady Lee
SITE/SICE
8. Draft Amendment to Securities Investment Trust and Consulting Act
On 3 December 2021, the FSC announced the draft amendment to Article 111 of the ²Securities Investment Trust and Consulting Act² for public consultation. It is proposed that the upper limit of administrative fine for violations which will significantly affect rights and benefits of beneficiaries or investors will be adjusted from NT$ 3 million to NT$ 15 million.
Reported by: Jeffery Liu/Eliza Lee
9. Amendments to Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises
On 8 December 2021, the FSC issued a ruling (Ref No: Jin-Guan-Zheng-Tao-Zi-1100365223) to amend the Articles 11, 19 and 36 of Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises. Please refer to Lexgroup Newsletter (Issue No.377) for the amendment summary.
Reported by: Jeffrey Liu / Lia Wang
Anti-Money Laundering
10. Amendment to Regulations Governing Anti-Money Laundering of Financial Institutions
On 14 December 2021, the FSC announced the amendment to the Regulations Governing Anti-Money Laundering of Financial Institutions. We summarize below:
(1) To include migrant workers remittance companies into other financial institutions designated by the FSC, revise the definition of electronic payment accounts and users, and add the definition of stored value cards; and
(2) To amend the term of "electronic stored value cards" to "stored value cards".
Reported by：Stacy Lo/ Nora Hsu
11. Amendment to Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Banking Business and Other Financial Institutions Designated by the Financial Supervisory Commission
On 14 December 2021, the FSC announced the amendment to Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Banking Business and Other Financial Institutions Designated by the Financial Supervisory Commission. We summarize below:
(1) To include migrant workers remittance companies conducting small-amount remittance business as other financial institutions designated by the FSC, and add AML/CFT related educational training requirement;
(2) To require other financial institutions designated by the FSC to establish specific policies and procedures for correspondent banking and other similar relationships; and
(3) To add the requirements for other financial institutions designated by the FSC conducting wire transfer business.
Reported by: Stacy Lo / Henry Ku
Personal Data Protection
12. Amendment to Regulations Governing Security and Maintenance of Personal Data Files of Non-government Agency Designated by the Financial Supervisory Commission
On 14 December 2021, the FSC announced the amendments to the Regulations Governing the Security and Maintenance of Personal Data Files of Non-government Agency Designated by the FSC. We summarize below:
(1) To remove the reference to electronic stored value card enterprises so as to cope with the amendments to the Act Governing Electronic Payment Institutions; and
(2) To require that in general the information leakage report shall be made within 72 hours, and provide the matters to be reported and the subsequent administrative inspections so as to strengthen the leakage report mechanism of personal data files.
Reported by: Stacy Lo/ Will Chen
Insurance
13. The Draft Amendment to Regulations Governing Foreign Investments by Insurance Companie
On 14 December 2021, the FSC announced the draft amendment to Articles 8 and 17 of the Regulations Governing Foreign Investments by Insurance Companies to relax that the investment subject of private equity fund that may be invested by the insurance companies, and to strengthen the risk tolerance standard for the insurance companies to invest in private equity funds.
Reported by: David Tsai/ Lily Huang
Offshore Funds
14. Reminder of Restrictions on Investment in Securities in Mainland China by Offshore Fund
On 14 December 2021, the FSC issued a ruling ( Jin-Kuan-Chen-Tou-Tz-11003707) to remind the industry that for offshore fund registered in Taiwan, unless provided otherwise, its investment in securities in Mainland China shall be limited to securities listed on an exchange or traded on the China Interbank Bond Market, and the total amount of which, whether by direct or indirect way (e.g. through participatory note), may not exceed 20% of the net asset value of the offshore fund.
Reported by: Jeffrey Liu / Amy Su
Banking
15. Draft Amendment to Regulations Governing Domestic Juristic Person Opening Credit Extension Purpose Account with Offshore Banking Unit
On 7 December 2021, the FSC announced the draft Regulations Governing Domestic Juristic Person Opening Credit Extension Purpose Account with Offshore Banking Unit (Regulation) and rescinded the current regulations for public consultation. We summarize below:
(1) The DBU FX account held by the same local juristic person can be the transaction counterparty of the Crediting Extension Purpose OBU account, and the purpose of the transaction shall be limited to payments of (i) repaying the principal and interests of the loan, (ii) relevant fees of credit extension, (iii) security deposit for indirect loans such as trade finance or guarantee, and (iv) margin for FX forward contract or FX swap related to credit extension and for hedging purpose.
(2) The account balance of the above payments and the balance of the Crediting Extension Purpose OBU account may be remitted into the DBU FX account.
Reported by: Stacy Lo / Hsiyen Hsu
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2021-12-22
