Labor
1.Draft of “Regulations of Workplace Bullying Prevention”
On April 21, 2026, the Ministry of Labor announced to set forth the ” Regulations of Workplace Bullying Prevention” (Regulations), and sought for the advice from the public. We summarize key points below
(1) Principles and factors for determining workplace bullying.
(2) Preventive and control measures to be taken by the employer based on the scale of the enterprise, and the appropriate action with the immediate/effective effect to be taken by employers for the workplace bullying known to the employer.
(3) Methods and timeframe for the employee to file the complaint of workplace bullying, and the conclusion of whether to accept the complaint and the timeframe to handle it.
(4) After receiving the complaint of the workplace bullying, the employer shall, within the given timeframe, register the case in the system in accordance with the required contents and methods.
(5) Principles for handling the complaint after the receipt by the employer, including the qualification of the investigator and the composition of the investigation panel.
(6) Recusal requirements of the conflict of interest for the personnel participating in the investigation, handling, or appeal of the complaint.
(7) Matters of the compliance for the employer during the investigation.
(8) Timeframe and required contents for the investigation report, and the handling procedure when the party is reluctant to cooperate with the investigation.
(9) Decisions made after the investigation, and the content and timeframe of the notification to the parties in writing.
(10) Factors for assessing the severity of the conduct of workplace bullying, and provisions for the employer to impose appropriate disciplinary actions or measures on the violator based on his/her severity.
(11) Prevention from any adverse treatment imposed by the employer on the employee who files the complaint or assists others in filing the complaint.
(12) Procedures and timeframe for the party to file the appeal against the investigation decision, and the procedure for the employer to handle the appeal and the composition of the appeal panel.
(13) Provisions for the case where the employer’s investigation result is determined by the competent authority for further investigation.
(14) Provisions for the employer to conduct the trace, evaluation, supervision, and retention of relevant records for the case of workplace bullying.
(15) Mechanisms to handle the case of workplace bullying involving compound or multiple conducts.
(16) The Regulations also apply to the complaint case whose investigation proceeding has not yet finished.
Reported by: David Tsai / Hank Chang
Tax
2.Amendments to the Directions Governing the Filing of Income Tax on Integrated House and Land Transactions
On 21 April 2026, the Ministry of Finance announced amendments to the Directions Governing the Filing of Income Tax on Integrated House and Land Transactions. We summarize below:
(1) The amendment relaxes the rules to exclude from the scope of the house and land integrated tax the portion of gains derived from a shareholder’s transfer of equity in an invested enterprise acquired before June 30, 2021, corresponding to the proportion of the value of real property held by such enterprise that was acquired before December 31, 2015 relative to its total domestic real property value.
(2) In determining whether 50% or more of the value of equity in an invested enterprise is composed of domestic real property, with reference to international practices, provides that to ensure a more reasonable calculation, , where the total asset value of the enterprise can be reasonably and objectively measured (e.g., based on CPA-audited valuation reports ), the denominator may be calculated based on the total fair market value of all assets.
(3) The amendment clarified how to determine the acquisition date and holding period for real property acquired through spousal gifts, successive inheritance, and similar arrangements.
(4) Where a sole proprietor or a partner in a partnership jointly develops and acquires real property with a landowner and disposes of such property within five years, a 20% income tax rate may be applied.
(5) Where a profit-seeking enterprise actually engages in construction but is unable to act as the project developer for objective reasons, it may apply consolidated taxation upon submission of supporting documents and verification by the tax authority.
(6) Where arrangements are made to avoid or reduce tax liability through segmented transactions of buildings, partial ownership of land, or agreed-upon portions of building usage rights, a tax shall be imposed with a base amount of NT$300,000, apportioned according to the relevant ownership share or agreed scope
Reported by: Alex Li / Eden Hsieh
Financials
3.Amendment to Directions Governing Limitations on Types and Amounts of the Securities in which a Commercial Bank May Invest
On 22 April 2026, the Financial Supervisory Commission (FSC) announced the amendment to the “Directions Governing Limitations on Types and Amounts of the Securities in which a Commercial Bank May Invest”. We summarize below:
(1) To stipulate that foreign-currency-denominated Islamic Fixed Income Securities (Sukuk) offered and issued in Taiwan by foreign issuers, and Exchange Traded Note issued by domestic securities firms, are securities in which commercial banks may invest, and to prescribe the applicable investment limits therefor;
(2) To stipulate that any increase in net worth arising from a merger and capital increase of a commercial bank during the fiscal year may be included in the calculation base for investment limits, with the date of obtaining the capital verification certificate serving as the record date for calculation; and
(3) Where the government is the responsible person of a bank and concurrently serves as a director or supervisor of a securities issuer, the prohibition on investing in securities issued by interested parties shall not apply.
Reported by: Stacy Lo / Zoe Chen
4.Draft Amendment to Article 18-1 of the Standards Governing the Establishment of Commercial Banks
On 21 April 2026, the FSC announced the draft amendment to Article 18-1 of the “Standards Governing the Establishment of Commercial Banks”. This draft amendment aims to give internet-only banks greater flexibility to respond to their operational needs. We summarize below:
(1) After three years from the commencement of operations, the requirement on the aggregate shareholding ratio of financial institution shareholders does not apply. The requirements on the number of professional directors also revert to the provisions under Article 9 of the Regulations Governing Responsible Persons of Banks.
(2) In light of the policy objective of establishing internet-only banks, the requirement that at least one director possess professional expertise in fintech, e-commerce, or telecommunications still remains.
Reported by: Stacy Lo / Linda Guo
Securities
5.Ruling Regarding Articles 17 and 18 of the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals
On 23 April 2026, the FSC issued a ruling regarding Articles 17 and 18 of the “Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals”. We summarize the key amendment below:
(1) Custodians designated by offshore overseas compatriots and foreign institutional investors (FINI) pursuant to Article 17 of the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals may receive foreign currency cash dividends on their behalf.
(2) Such dividends so received may be remitted by the custodian to the following accounts:
(a) Offshore foreign currency deposit accounts designated by the offshore overseas compatriots or FINIs; or
(b) Domestic foreign currency deposit accounts opened in accordance with relevant regulations.
Reported by: Stacy Lo / Maggie Tsai
SITE/SICE
6.Relaxation of the 10% Single-Stock Investment Cap to 25% for Domestic Equity Funds and Active ETFs
On 24 April 2026, the FSC announced a regulatory relaxation applicable to domestic equity funds and active ETFs investing exclusively in Taiwan-listed equities. Under the new ruling, if a listed company’s weighting in the Taiwan Capitalization Weighted Stock Index (TAIEX) exceeds 10%, the above-mentioned domestic equity funds and active ETFs may exceed the existing single-issuer investment cap of 10% of the fund’s NAV, subject to the following conditions:
(1) The fund’s investment weighting in the stock must not exceed the company’s weighting in the TAIEX; and
(2) The combined exposure to the company’s stock, corporate bonds, and financial bonds must not exceed 25% of the fund’s NAV.
According to the Securities Investment Trust and Consulting Association of the Republic of China (SITCA), existing funds seeking to adopt the new regime may amend their trust deeds without convening a beneficiaries’ meeting, provided there is no change to the fund’s product positioning or core investment strategy, subject to obtaining a legal opinion confirming no material impact on beneficiaries’ interests, securing approval from the FSC, and completing the necessary internal control and board approval procedures.
Reported by: Jeffrey Liu/ Linda Guo
| 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) |
