Criminal Code
1.Draft Amendment to Article 80 of Criminal Code of the Republic of China and Article 8-1 of Enforcement Law of the Criminal Code of the Republic of China
On 12 August 2025, the Ministry of Justice announced the draft amendment to Article 80 of “Criminal Code of the Republic of China” and Article 8-1 of “Enforcement Law of the Criminal Code of the Republic of China”, stipulating that the calculation of the limitation period of prosecution shall exclude the period before the victim of certain sexual offenses reached the age of majority, and specifying that, when comparing the application of the old and new laws in relation to this amendment, the interpretation most favorable to the offender shall apply.
Reported by: David Tsai / Joe Liao
Finance
2.Draft Amendment to Regulations Governing Information to be Published in Annual Reports of Financial Holding Companies, Regulations Governing Information to be Published in Annual Reports of Banks and Regulations Governing Information to be Published in Annual Reports of Bills Finance Companies
On 4 August 2025, the Financial Supervisory Commission (FSC) announced the draft amendment (“Draft”) to the “Regulations Governing Information to be Published in Annual Reports of Financial Holding Companies”, “Regulations Governing Information to be Published in Annual Reports of Banks” and “Regulations Governing Information to be Published in Annual Reports of Bills Finance Companies” for public consultation. We summarize below:
(1) Financial holding companies as well as banks and bills finance companies meeting certain criteria shall include sustainability-related financial information, as approved by the board of directors, in a dedicated section of their annual reports
(2) The preparation and disclosure of sustainability-related financial information shall comply with the regulations under Article 10-1 of the Draft, relevant laws and regulations and the IFRS Sustainability Disclosure Standards as recognized by the FSC; and
(3) After adopting the IFRS Sustainability Disclosure Standards, financial holding companies as well as banks and bills finance companies meeting certain criteria shall submit their annual reports concurrently with their financial statements for the year. However, if they are unable to complete the full contents of the annual report in time, they may first submit the dedicated section on sustainability-related financial information, and later submit the complete annual report in accordance with the current regulations.
Reported by: Stacy Lo / Zoe Chen
Securities
3.Ruling regarding Article 19-1, Paragraph 1, and Article 31-1 of Regulations Governing Securities Firms
On 7 August 2025, the FSC announced a ruling regarding securities firms’ trading of specific foreign bonds for their own account. We summarize below:
(1) All trades must be outright purchases or sales. Conditional transactions are prohibited. The ruling also defines permissible scope of instruments, minimum credit rating requirements, categories of prohibited securities, and interest calculation methods.
(2) Securities firm must adhere to limits on the total amount of foreign securities they can hold in their proprietary account. The method of calculation is prescribed.
(3) Securities firm must handle positions in specific foreign bonds whose credit ratings subsequently fall below the minimum credit rating.
(4) Securities firm must incorporate relevant procedures into the internal control system, and establish independent accounts. The ruling also specifies that these accounts may not be commingled with fiduciary accounts or used for mergers and acquisitions, unlawful activities, or the manipulation of financial statements. Additional requirements apply when securities firms conduct foreign securities transactions through their firm’s brokerage department.
(5) Requirements for accounting treatment are specified.
Reported by: Jeffrey Liu / Eden Hsieh
Tax
4.Amendment to Standards for Reduction or Exemption of Penalties in Tax Violation Cases
On 8 August 2025, the Ministry of Finance announced the amendment to the Standards for Reduction or Exemption of Penalties in Tax Violation Cases. We summarize below:
(1) To add that if an organization, private school, or enterprise fails to file or accurately report, or fails to issue a non-withholding tax statement within the statutory period, but: (i) voluntarily files or issues within ten days after the expiration of the prescribed period and the total amount of payments supplemented is not more than NT80,000;or (ii) voluntarily declares or issues after ten days but the total amount of payments supplemented does not exceed NT$60,000, or (iii) files or issues within the time limit specified by the tax authority’s order and the total amount of payments supplemented is not more than NT$40,000, no penalty shall be imposed.
(2) To add that in the event of dissolution, revocation, or similar circumstances, if the organization, private school, or enterprise fails to file or truthfully report, or fails to issue a non-withholding tax statement within the statutory period, but voluntarily files or issues by January 31 of the following year (or February 5 if the period includes three or more consecutive national holidays), the penalty shall be reduced.
(3) To add that if a government agency, administrative corporation, or organization fails to file or issue a withholding tax statement accurately within the statutory period, but voluntarily files or issues within ten days after the deadline, and the amount of tax withheld involved is not more than NT$8,000, no penalty shall be imposed.
(4) To add that in the event of dissolution, revocation, or payment of income to non-residents, if a government agency, administrative corporation, or organization fails to file or truthfully report, or fails to issue a non-withholding tax statement within the statutory period, but voluntarily files or issues by January 31 of the following year (or February 5 if the period includes three or more consecutive national holidays), the penalty shall be reduced.
(5) To add that if a profit-seeking enterprise fails to file or truthfully report, or fails to issue a dividend statement within the statutory period, but: (i) voluntarily files or issues within ten days after the expiration of the prescribed period, and the total amount of dividends or earnings supplemented is not more than NT$80,000; or (ii) the total amount of dividends or earnings supplemented is not more than thirty percent of the dividends or earnings required to be filed or issued, no penalty shall be imposed.
(6) To add that if a profit-seeking enterprise is dissolved or merged, and fails to file or truthfully report, or fails to issue a dividend statement within the statutory period, but voluntarily files or issues by January 31 of the following year (or by February 5 if the following January includes three or more consecutive national holidays), the penalty shall be reduced.
(7) To add that if a penalty is exempted pursuant to Article 48-1 of the Tax Collection Act, such exemption shall not be counted as a previous offense of the same violation.
Reported by: Alex Li / Julia Kuo
Food
5.Draft Amendment to Regulations Governing the Registration of Food Businesses
On 12 August 2025, the Ministry of Health and Welfare proposed the amendments to the Regulations Governing the Registration of Food Businesses, adding that manufacturing and processing businesses, catering businesses, and import businesses are to register product liability insurance information.
Reported by: Kang-Shen Liu / Julia Kuo
| Editors: Mike Lu (Partner) Stacy Lo (Partner) Jeffrey Liu (Partner) Kang-Shen Liu (Partner) David Tsai (Partner) Angela Lin (Partner) Paul Hsu (Partner) Alex Li (Partner) | Counselors: Echo Yeh Sue Su Jolene Wang (Lexcel Partners IP Firm) |
