Climate Change
1.Review Principles for Assessment of Applications by Entities Subject to Carbon Fee for Recognition as Having High Carbon Leakage Risks
The Ministry of Environment, for the purpose of review for recognizing entities subject to carbon fees (“entities”) as having high risk of carbon leakage pursuant to Article 6 of the Regulations Governing Collection of Carbon Fees, promulgated the “Review Principles for Assessment of Applications by Entities Subject to Carbon Fee for Recognition as Having High Carbon Leakage Risks” on 12 January 2026. We summarize below:
(1) To prescribe the qualification for an entity to apply to the Ministry of Environment for recognition as having high carbon leakage risks, and the documents required to be submitted;
(2) To specify the deadline by which entities shall submit the applications;
(3) The procedures and timeline for the Ministry of Environment to review the qualification of entities for recognition as having high carbon leakage risks;
(4) To specify the matters to be stated in the recognition letter where the Ministry of Environment determines that an entity has high carbon leakage risks; and
(5) To specify the circumstances under which the recognition letter for having high carbon leakage risks may be revoked or rescinded.
Reported by: Stacy Lo / Linda Guo
Labor
2. Ruling on Article 14 of the Act for the Recruitment and Employment of Foreign Professionals
On 8 January 2026, the National Development Council issued a ruling specifying the conditions set forth in Article 14 of the Act for the Recruitment and Employment of Foreign Professionals. The conditions apply to foreign professionals eligible for visa-exempt treatment together with any of the following criteria:
(1) Have obtained a digital nomad visa from another country with proof thereof;
(2) Are 30 years of age or older and have earned at least USD 40,000 in any one year of the past 2 years;
(3) Are 20 years of age or older but under 30 and have earned at least USD 20,000 in any one year of the past 2 years.
Reported by: David Tsai / Julia Kuo
Securities firm
3.Ruling Related to Subparagraph 7, Paragraph 1, Article 22-4 of Offshore Banking Act
The Financial Supervisory Commission (FSC) issued a ruling on 6 January 2026, providing that offshore securities units (OSUs) may conduct non-restricted purpose loan business. We summarize below:
(1) With respect to non-restricted purpose loan business conducted by OSUs, eligible customers are limited to individuals, juristic persons, government agencies, or financial institutions located outside Taiwan. The receipt and disbursement of funds shall be limited to foreign currencies; the loaned funds may not be converted into New Taiwan Dollars, and customers may not purchase foreign currencies with New Taiwan Dollars for repayment;
(2) To stipulate the documents required to be submitted by securities firms when applying for OSU to conduct non-restricted purpose loan business, and such applications shall be reviewed by the Taiwan Securities Association and then submitted to the FSC for approval;
(3) To stipulate the scope of collateral for non-restricted purpose loan business conducted by OSUs, and such collateral may not be pledged;
(4) The total amount of funds extended to customers under non-restricted purpose loan by a securities firm’s head office and branches, when aggregated with the total amount of funds extended under securities business lending and margin loans for securities trading conducted by the securities firm’s head office and branches, shall not exceed 400% of the securities firm’s net worth, and relevant information shall be reported on a daily basis to the Taiwan Stock Exchange Corporation; and
(5) After an OSU is approved by the FSC to conduct non-restricted purpose loan business, if the securities firm’s capital adequacy ratio falls below 150% for two consecutive months, such business shall be suspended. The business may be resumed only after the ratio has met the requirement for three consecutive months and approval has been obtained from the FSC.
Reported by: Stacy Lo / Zoe Chen
4.Relevant Regulations Governing Securities Firms’ Applications to Establish Offshore Securities Units
On 6 January 2026, the FSC issued an official ruling amending the relevant regulations governing the establishment of OSU. The amendment adds that a securities firm applying to establish an OSU in Taiwan solely for the purpose of conducting non-restricted purpose loan business shall have a net worth of not less than NT$40 billion, as shown in its most recent financial statements audited and certified by a certified public accountant. All other requirements and related definitions remain unchanged.
Reported by: Jeffrey Liu / Eva Chiu
SITE/SICE
5.Amendment to Q&A of Directions for Operations Outsourcing by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises
On 5 January 2026, the FSC amended Question 1 of the Q&A of Directions for Operations Outsourcing by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises to expand categories of activities that are not considered outsourcing by securities investment trust enterprises and securities investment consulting enterprises (SITEs/SICE). We summarize below:
(1) To clarify that short-term contract between SITE/SICE and manpower dispatch companies, regardless of whether structured as contracts for work, mandates, or labor dispatch arrangements, fall within this category;
(2) To add that office automation services used solely for internal office operations and not involving business operations or services to beneficiaries or client, such as Microsoft 365, Google Workspace, or other office collaboration software, are not considered outsourcing. However, those used for beneficiaries or clients services will be deemed outsourcing; and
(3) To add that the engagement of third parties to develop computer software systems or the procurement of vendor-developed computer software systems, where the vendor subsequently provides only limited modifications, maintenance, or upgrades and does not access beneficiary or client data, is not considered outsourcing.
Reported by: Jeffrey Liu / Alva Wu
| 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) |
