Tax
1.Amendment to Agreement between the Taipei Representative Office in Singapore and the Singapore Trade Office in Taipei for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance
On 20 March 2026, the President announced the amendment to the “Agreement between the Taipei Representative Office in Singapore and the Singapore Trade Office in Taipei for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” (the “Agreement”). The Agreement shall apply from 1 January 2027. With respect to taxes withheld at source, the Agreement shall apply to income payable on or after 1 January 2027. For other taxes, it shall apply to income for taxable periods beginning on or after 1 January 2027. The agreement previously signed on 30 December 1981 shall cease to apply, from the date the Agreement becomes applicable, to all cases covered by the Agreement. We summarize below:
(1) To add that a qualified collective investment vehicle in a territory which receives income arising in the other territory shall be deemed as a resident in the first-mentioned territory and beneficial owner of the income it receives. In Taiwan, a collective investment vehicle in a territory refers to collective trust funds, securities investment trust funds, futures trust funds, and real estate investment trusts that are publicly offered and established in accordance with applicable laws.
(2) The definition of a “permanent establishment” is revised to include:
(a) a building site, construction, installation or assembly project, or related supervisory activities, where such activities continue for more than nine (9) months; and
(b) the furnishing of services by an enterprise of one territory through its employees, where such activities in the other territory continue for, or in the aggregate exceed, 183 days within any 12-month period.
(3) Profits derived by an enterprise of one territory from the operation of ships or aircraft in international traffic shall be taxable only in that territory, and interest arising from funds connected with such operations shall be treated as profits from the operation of such ships or aircraft.
(4) Corresponding adjustments to tax are made for transfer pricing between associated enterprises.
(5) Where a company paying dividends is a resident of one territory and the beneficial owner of the dividends is a resident of the other territory, the tax charged in the first-mentioned territory shall not exceed 10% of the gross amount of the dividends.
(6) To add that interest arising in one territory and paid to a resident of the other territory shall be subject to tax in the source territory at a rate not exceeding 10% of the gross amount of the interest; furthermore, interest derived by certain entities of the other territory shall be taxable only in that other territory.
(7) The tax imposed in the source territory on royalties shall not exceed 10% of the gross amount of the royalties.
(8) Provisions are added regarding gains from the transfer of property. Gains derived from the transfer of immovable property situated in the source territory, or of a permanent establishment or fixed base and movable property forming part thereof, as well as gains from the transfer of unlisted shares or interests deriving more than 50% of their value from real estates located in that territory, may be taxed in the source territory; gains from the alienation of other property shall be exempt from tax in the source territory.
(9) Remuneration derived by an individual in respect of services rendered aboard a ship or aircraft operated in international traffic may be taxed in the territory of residence of the enterprise.
(10) Payments received by a student for the purpose of maintenance, education, or training, which arise from sources outside the territory in which the student is present, shall be exempt from tax in that territory.
(11) With respect to the elimination of double taxation, transitional provisions applicable to our territory are provided and shall apply only for the first three years from the effective date of this Agreement:
(a) The calculation of the tax payable on dividends paid by a company resident in the other territory to a company resident in our territory, where the latter directly or indirectly holds at least 25% of the capital of the former; and
(b) The tax paid in the other territory shall be deemed to include any amount of tax reduced or exempted pursuant to laws enacted in that territory to promote economic development.
(12) The Agreement shall apply from 1 January 2027.
Reported by: Alex Li / Zoe Chen
Labor
2.Amendment to “Other Required Documents for Employers Applying for Recruitment of Category 1 Foreign Professionals”
On March 20, 2026, the Ministry of Labor amended point 3 of the “Other Required Documents for Employers Applying for Recruitment of Category I Foreign Professionals.” In addition to the documents originally required for the filing, employers applying for the work permit for foreign professionals in any of the following fields shall also submit other additional documents as required:
(1) Science and technology fields announced by the National Science and Technology Council;
(2) Financial fields announced by the Financial Supervisory Commission;
(3) Legal fields announced by the Ministry of Justice;
(4) Education fields announced by the ministry of education;
(5) Culture and arts fields announced by the Ministry of Culture;
(6) Architectural design fields announced by the Ministry of the Interior; and
(7) Economic fields announced by the Ministry of Economic Affairs;
(8) Sports Fields Announced by the Ministry of Sports;
(9) National Defense Fields Announced by the Ministry of National Defense;
(10) Digital Fields Announced by the Ministry of Digital Affairs;
(11) Biotechnology Fields Announced by the Ministry of Economic Affairs; and
(12) Environmental Fields Announced by the Ministry of Environment.
Reported by: David Tsai / Hank Chang
Intellectual Property
3.Amendment to Examination Guidelines on Distinctiveness of Trademarks and Examination Guidelines on Trademark being Contrary to Public Policy or Accepted Principles of Morality
On 18 March 2026, the Ministry of Economic Affairs (MOEA) announced amendments to the “Examination Guidelines on Distinctiveness of Trademarks” and “Examination Guidelines on Trademark being Contrary to Public Policy or Accepted Principles of Morality”, which take effect immediately. We summarize below:
(1) Amendment to Examination Guidelines on Distinctiveness of Trademarks:
To align with the legislative purpose of the Development of National Languages Act, the term “Taiwanese Hokkien” is amended to “Taigi”.
(2) Amendment to Examination Guidelines on Trademark being Contrary to Public Policy or Accepted Principles of Morality:
Update of the article number cited in the refusal examples referring to the Narcotics Hazard Prevention Act.
Reported by: Jolene Wang / Alex Miao
Financials
4.Leasing Companies Brought within the Scope of the Financial Consumer Protection Act
On 11 March 2026, the Financial Supervisory Commission (FSC) announced the “Regulations on Other Financial Services Enterprise Announced by the Competent Authority under Paragraph 1, Article 3 of Financial Consumer Protection Act,” formally bringing 13 leasing companies engaged in specified financing activities within the scope of the Financial Consumer Protection Act (the “FCPA”). We summarize below:
(1) Expanded scope of covered entities: 13 financial leasing companies are newly designated as “financial service enterprises” under Paragraph 1, Article 3 of the FCPA, where such companies engage in accounts receivable purchasing, installment sales, or other businesses of a similar financing nature targeting natural persons;;
(2) Immediate application: From the effective date, the FCPA applies to these leasing companies in respect of the aforementioned businesses and any financial consumer disputes arising therefrom; and
(3) Effective date: 15 March 2026.
Reported by: Stacy Lo / Zoe Chen
Public Company
5.Relaxation of Restrictions on Virtual Shareholders’ Meetings for Public Companies
On March 24, 2026, the FSC amended Article 44-11 of the Regulations Governing Stock Affairs of Public Companies, relaxing restrictions on holding virtual and hybrid shareholders’ meetings in response to force majeure events such as natural disasters and incidents, thereby enhancing the flexibility of publicly issued companies in convening shareholders’ meetings during emergencies. We summarize below:
(1) Relaxed conditions: During periods announced by the Ministry of Economic Affairs in connection with special circumstances, companies may hold virtual or hybrid shareholders’ meetings without being subject to certain restrictions under the original provision.
(2) No articles of incorporation amendment required: Companies may adopt virtual or hybrid meeting formats without having existing provision for the arrangements in articles of incorporation.
Reported by: Jeffrey Liu / Hank Chang
| 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) |
