Personal Data Protection Act
1.Draft Organizational Act of Personal Data Protection Commission and Draft Amendment to Personal Data Protection Act
On 27 March 2025, the Executive Yuan passed the draft “Organizational Act of Personal Data Protection Commission” and draft amendment to the “Personal Data Protection Act” (PDPA), which are subject to the review of the Legislative Yuan. We summarize below:
(1) Organizational Act of Personal Data Protection Commission
(a) The matters managed by the Personal Data Protection Commission (PDPC), which includes drafting and interpretation of personal data protection regulations, handling of cases of violation of PDPA, and other matters related to personal data protection;
(b) The meeting resolutions of the PDPC, which includes deliberations on personal data protection policies and drafting of personal data protection laws and regulations.
(2) Personal Data Protection Act
(a) To add that when a government or non-government agency encounters an incident of personal data leakage, it has the obligation to take contingency measures and keep records of the incident, and shall notify the competent authority when it falls under a certain scope;
(b) To amend the administrative inspection of non-government agencies to make the PDPC the responsible authority, and to add the requirements for the initiation of inspection;
(c) In conjunction with the obligations on notification of personal data incidents, contingency measures, and record keeping, as well as the revision of the matters on security maintenance of personal data files by non-government agencies and supervision and management during the transitional period, the penalties for non-compliance with the relevant obligations by non-government agencies is added;
(d) To stipulate that the competent authority may report to the Executive Yuan for announcement of a certain range of non-government agencies, which shall remain temporarily under the supervision of the competent central authority for the industry or the governments of the municipalities or counties (cities) for the personal data protection during the six (6)-year transition period; and
(e) To add that any person who objects the administrative sanctions imposed by PDPA shall file an administrative litigation for relief, and to stipulate the relevant mechanism for filing an administrative appeal during the transitional period, as well as the handling of administrative appeals that have not yet been filed or completed prior to the implementation of the amendment.
Reported by: Stacy Lo/ Zoe Chen
Asset Management Zone
2.「Operation Directions of Financial Institutions Applying for Stationing at Local Asset Management Zone and Business Trial」
On 1 April 2025, the Financial Supervisory Commission (FSC) announced the “Operation Directions of Financial Institutions Applying for Stationing at Local Asset Management Zone and Business Trial”. Please refer to the Alert Sheet from Lexcel Partners- Operation Directions of Financial Institutions Applying for Stationing at Local Asset Management Zone and Business Trial dated 8 April 2025 for the summary.
Reported by: Stacy Lo / Jeffrey Liu / Eva Chiu
Electricity
3.Amendment to “Regulations on Registration of Electricity Industry”, “Regulations on Registration of Self-use Power Generating Equipment”, and “Regulations on the Administration of Renewable Energy Power Generation Equipment Installation”
On 31 March 2025, the Ministry of Economic Affairs announced the amendment to “Regulations on Registration of Electricity Industry,” Attachment 1, Article 3 of “Regulations on Registration of Self-use Power Generating Equipment,” and Article 7 of “Regulations on the Administration of Renewable Energy Power Generation Equipment Installation.” We summarize below:
(1) To add that when solar photovoltaic operators apply for establishment or expansion permits, proof of conducting a local briefing session shall be provided.
(2) To add that if the solar photovoltaic equipment and its necessary ancillary facilities are installed on land or water surfaces, relative proof shall be submitted when applying for a work permit to ensure that the installation boundaries comply with relevant distance regulations.
(3) To add the method of reviewing applications from solar photovoltaic operators for the issuance of the letter of consent.
(4) To add the target participants, procedures, and related matters for solar photovoltaic operators to conduct local briefing sessions.
(5) To add the required documents to be submitted for filing for record applications to install ocean energy power generation equipment.
(6) To amend the required documents and relevant explanations of utilization plan for self-use power generation equipment.
Reported by: Stacy Lo / Joe Liao
Taxation
4. Amendment to “Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income”
On 8 April 2025, the Ministry of Finance announced the amendment to the “Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income”. We summarize as follows:
(1) The amendment extends the period for filing an application for applying Avoidance of Double Taxation Agreement from 5 years to 10 years from the date of tax payment, as required by laws and regulations;
(2) If more than 5 years have passed since the date of tax payment, the provisions in effect prior to the amendment shall apply; and
(3) Provisions under Avoidance of Double Taxation Agreement shall prevail over those under this Regulation.
Reported by: Alex Li / Zoe Chen
5.Amendment to “Directions on the Levying of Business Tax on Cross-Border Electronic Services Transactions”
On 7 April, 2025, the Ministry of Finance announced the amendment to “Directions on the Levying of Business Tax on Cross-Border Electronic Services Transactions”. We summarize as follows:
(1) The annual sales amount threshold for an offshore electronic service business entity selling electronic services to domestic individuals, which triggers the obligation to register for tax, has been raised from NT$480,000 (approximately US$15,000) to NT$600,000 (approximately US$18,750). The threshold for annual sales amount requiring business entities to apply for tax registration, as specified in Subparagraph 4, Article 6 of the Value-added and Non-value-added Business Tax Act, will be amended accordingly.
(2) The amendments adds that if the sales amount is not denominated in a foreign currency based on the Bank of Taiwan’s posted exchange rates, it shall first be converted into a foreign currency using the spot buying closing rates as announced by the Bank of Taiwan, and then further converted into New Taiwan Dollars using the spot buying closing rates of such foreign currency as posted by the Bank of Taiwan.
Reported by: Alex Li / Julia Kuo
Public Company
6.Draft Amendment to “Regulations Governing the Acquisition and Disposal of Assets by Public Companies”
On 1 April, 2025, the FSC announced the draft amendment to the “Regulations Governing Acquisition and Disposal of Assets by Public Companies” for public consultation. We summarize below:
(1) To relax the announcement and report standard for the acquisition or disposal of equipment for business use from a non-affiliated party by a company with a paid-in capital of NT$50 billion;
(2) To relax the announcement and report standard for the acquisition or disposal of government bonds, corporate bonds, financial bonds not involving equity (excluding subordinated bonds) from a non-affiliated party by a company with a paid-in capital of NT$50 billion; and
(3) To align with the newly added provisions of the Regulations regarding public companies with paid-in capital of NT$50 billion or more, as well as the reporting and disclosure standards for transactions amounting to 5% or more of the company’s paid-in capital, the method of calculating 5% of the paid-in capital and NT$50 billion in paid-in capital is specified for companies whose shares have no par value or a par value other than NT$10 per share.
Reported by: Mike Lu / Zoe Chen
Banking
7.Draft Amendment to Article 2 of “Regulations Governing the Authorization Matters of Article 33-3 of the Banking Act”
On 27 March 2025, the FSC announced the draft amendment to Article 2 of the “Regulations Governing the Authorization Matters of Article 33-3 of the Banking Act” (Regulations) for public consultation. Since the amount of unsecured personal loans undertaken by banks has increased annually, in order to reduce the operational burden, the FSC announced the draft amendment to item 4, subparagraph 6, Article 2 of the Regulations to raise the threshold for small-amount loans excluded from the total credit balance under the Regulations from NT$1 million to NT$2 million, so as to expand the scope of exemptions from submitting the same related party information form.
Reported by: Stacy Lo / Ron Tsai
Securities Firms
8.Announcement of the Ruling for Allowing Qualified Securities Firms to Invest Trust Assets in Offshore Funds Without the Nature of Securities Investment Trust Funds
The FSC issued an official letter on 26 March 2025, stating that securities firms conducting wealth management business through trusts and concurrently engaging in monetary and securities trust business, having been approved pursuant to Subparagraph 10, Paragraph 1, Point 24 of the “Directions for the Conduct of Wealth Management Business by Securities Firms” (Directions), may invest their trust assets in offshore funds without the nature of securities investment trust funds. We summarize below:
(1) The trustor shall be limited to “professional institutional investors,” “high net worth juridical persons,” and “high-asset clients,” and the total number of investors in each such offshore fund shall not exceed 99 persons;
(2) The securities firm shall enter into an agreement with the foreign asset management institution or its designated institution regarding the specific offshore fund product and delegated matters, clearly stating that further delegation to other institutions is not allowed; and
(3) The securities firm shall file a report with the Securities Investment Trust and Consulting Association of the Republic of China within 5 business days after the completion date of fund payment.
Reported by: Jeffrey Liu / Jason Su
Securities
9.Draft Amendments to “Standards Governing the Establishment of Securities Firms”, “Regulations Governing Securities Firms”, and “Regulations Governing Responsible Persons and Associated Persons of Securities Firms”
On 27 March 2025, the FSC issued the draft amendments to certain provisions of the “Standards Governing Establishment of Securities Firms”, “Regulations Governing Securities Firms”, and “Regulations Governing Responsible Persons and Associated Persons of Securities Firms”. These amendments aim to allow securities firms to establish or convert general branches into simplified branches in response to the recent developments in digital transformation of securities firms. Relevant provisions are amended accordingly to incorporate the applicability of simplified branches.
Reported by: Jeffrey Liu / Eden Hsieh
10.Draft Amendments to “Directions for the Conduct of Wealth Management Business by Securities Firms”
On 1 April 2025, the FSC announced the draft amendments to the “Directions for the Conduct of Wealth Management Business by Securities Firms” (Directions). We summarize below:
(1) Point 2: The definition and criteria for high-net-worth clients are removed.
(2) Point 4: The threshold for securities firms applying for concurrent operation of discretionary investment services is relaxed, raising the mandatory requirement for trust enterprises to apply for concurrent operation of discretionary investment services from NT$10 million to NT$15 million.
Reported by: Jeffrey Liu / Eden Hsieh
Financials
11.Amendment to “Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises”
On 11 April 2025, the FSC announced the amendment to the “Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises” for public consultation. We summarize below:
(1) To stipulate that the foreign bonds that trust enterprises may accept mandates from non-professional investors to invest shall not include total loss absorbing capacity bonds (TLAC bonds);
(2) To stipulate that trust enterprises having invested in TLAC bonds prior to the amendment can only sell TLAC bonds based on the trustor’s instructions and shall not accept further mandates to invest in TLAC bonds; and
(3) To delete the provision that non-professional investors aged 70 or above are prohibited from being recommended for investment.
Reported by: Stacy Lo / Eva Chiu
nsurance
12.Draft Amendment to Article 11 of “Regulations Governing Public Disclosure of Information by Life Insurance Enterprises”, Article 3 of “Regulations Governing Non-Life Insurance Enterprises Engaging in Injury Insurance and Health Insurance”, Article 11 of “Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises”, “Regulations for Establishment and Administration of Foreign Insurance Enterprises”, “Regulations Governing Pre-sale Procedures for Insurance Products”, “Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises”, and “Regulations for Establishment and Administration of Insurance Enterprises”
On 11 April 2025, the FSC announced the draft amendment to certain regulations related to Insurance. We summarize below:
(1) To amend the name of “Internet-only insurance company” to “Digital insurer”, and to amend the definition thereof.
(2) To remove the restriction on the scope of business operation of digital insurers.
(3) To remove the restriction requiring business operation of digital insurers to be conducted entirely online.
(4) To remove the deadline for the establishment application of digital insurers.
(5) To remove the restriction requiring promoter to include individuals with specific professional qualifications.
(6) To lower the minimum paid-in capital requirement for digital non-life insurers and digital life insurers.
(7) To add the definition of innovative insurance products or services, the documents required for approval application, and the review procedures.
(8) To add that the competent authority may, as deemed necessary, determine the percentage of innovative insurance products or services to be provided by digital insurers.
(9) To add the obligation for digital life insurers to disclose information related to the approved innovative insurance products or services; and other insurers are not allowed to apply for or handle the same insurance products within a period of time without the consent of the competent authority.
(10) To add that insurers violate the above period of time is a reason for the competent authority to return the application without review or order the suspension of the sale of insurance products.
(11) To add the qualifications and documents required for foreign insurance institutions to apply for the establishment of a digital insurance branch in Taiwan to conduct insurance business.
(12) To add the information which shall be stated in the business plan of digital insurers, the possible risks of adopting technology and the risk management mechanism.
(13) To amend the content in the statement of source of funds required to be submitted for the issuance of a business license.
(14) To amend the ratio of own capital and risk capital which shall be reached for the insurance industry to be allowed to calculate specific items based on a self-determined amount.
Reported by: David Tsai / Joe Liao
| 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) |
