Artificial Intelligence
1.Draft Artificial Intelligence Fundamental Act
On 14 January 2026, the President announced the Artificial Intelligence Fundamental Act. We summarize below:
(1) The competent authority of this Act shall be the National Science and Technology Council at the central level, and the municipal, county, or city governments at the local level.
(2) Seven fundamental principles shall be observed in the research, development, and application of artificial intelligence, including sustainability and well-being, human autonomy, privacy protection and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability.
(3) The government shall promote AI research, application and infrastructure, establish innovative experimental environments, foster public-private collaboration and international cooperation, and continuously advance education and talent cultivation.
(4) The government shall prevent unlawful uses of AI, promote a risk classification framework, establish standards and verification tools to ensure verifiability and human controllability of decisions; and, for high-risk AI, clearly allocate liability and establish mechanisms for remedies, compensation, and insurance.
(5) The government shall safeguard labor rights and support workforce transition and re-employment, strengthen personal data protection, and ensure that AI training and applications uphold intellectual property rights.
(6) The government shall, in accordance with this Act, review the laws and administrative measures under its jurisdiction. Where such laws or measures are inconsistent with this Act or where no applicable laws exist, the government shall, within two years from the implementation of this Act, complete the enactment, amendment, or repeal of relevant laws and regulations, and improve the corresponding administrative measures.
Reported by:Stacy Lo / Julia Kuo
Insurance
2.Promulgate the amendment to Labor Insurance Act
(1) To revise that the relief loans under the Labor Insurance (Insurance) shall not be subject to the compulsory execution;
(2) To stipulate that the insurance premiums, overdue penalties, and principal and interest of unpaid Labor Insurance relief loans under the Insurance shall not be subject to the debt discharge provisions under the Company Act;
(3) To stipulate the sources of the Labor Insurance Fund and the methods of allocation and replenishment; and
(4) To stipulate that the financial responsibility of the Insurance shall ultimately be borne by the central government, and that the competent central authority shall conduct periodic reviews thereof.
Reported by: David Tsai / Joe Liao
Labor
3.Enactment of Delivery Driver Rights Protection and Delivery Platform Management Act
On 21 January 2026, the President promulgated the “Delivery Driver Rights Protection and Delivery Platform Management Act.”. We summarize below:
(1) To authorize the Ministry of Labor to prescribe the mandatory and prohibitory provisions for delivery service standard contracts. Any delivery service contract that violates such mandatory or prohibitory provisions shall be void. Where a mandatory provision is not included in such contract, it shall nevertheless be deemed to form part of the contractual content.
(2) The basic remuneration per order payable to a delivery driver shall not be lower than 1.25 times the minimum hourly wage, calculated on a pro rata basis according to the delivery service period. A minimum guaranteed amount of NT$45 per order and an adjustment mechanism are also prescribed. Remuneration shall be paid in full directly to the delivery driver and shall be disbursed on a regular basis at least twice per month.
(3) A delivery platform operator may terminate a delivery service contract with a delivery driver only under certain circumstances. In making such termination, the platform operator shall state the reasoning in its notice to the delivery driver, bear the burden of proof, and provide the delivery driver with an opportunity to file a complaint.
(4) To specify the right of a delivery driver to terminate a delivery service contract under certain circumstances and the obligation of a delivery platform operator to provide economic compensation in such cases.
(5) Delivery platform operators shall procure group personal accident insurance and liability insurance for delivery drivers and shall bear the insurance premiums for delivery drivers’ participation in occupational accident insurance.
(6) To specify the rights of delivery drivers to go offline and to take rest periods.
(7) The Ministry of Transportation and Communications shall prescribe the mandatory and prohibitory provisions for standard contracts governing material rights and obligations between delivery platform operators and consumers.
(8) The Ministry of Economic Affairs shall prescribe the model contract governing material rights and obligations between delivery platform operators and cooperating merchants.
(9) To specify that delivery platform operators shall retain records relating to consumers, cooperating merchants and delivery drivers along with retention periods, as well as that delivery platform operators shall not refuse access to such records by relevant authorities.
(10) To specify the obligation of delivery platform operators to report occupational accidents.
Reported by: David Tsai / Sean Tsai
4.Reference Guidelines on the Extension of the Mandatory Retirement Age and Reemployment after Retirement through Employer–Employee Consultation
On January 14, 2026, the Ministry of Labor issued the “Reference Guidelines on the Extension of the Mandatory Retirement Age and Reemployment after Retirement through Employer–Employee Consultation”. We summarize below:
(1) Relevant approaches for elder employees to remain in the workforce:
(a) Extension of the retirement age through consultation between the employer and the employee; and
(b) Reemployment of employees after retirement upon reaching the age of 65.
(2) The employer and the employee may, through consultation, also discuss whether to adjust work content, work location, working hours, or other matters in response to the employee’s work arrangements. However, the compliance with the Middle-aged and Elderly Employment Promotion Act (Act) shall still be noted. Unless otherwise provided in the Act, the different treatment on the basis of age shall not be permitted.
(3) Before the employee has completed retirement procedures, the employer shall not unilaterally convert an indefinite-term labor contract into a fixed-term labor contract, nor shall the employer unilaterally change the labor terms/conditions.
(4) Where the employer and the employee continue to perform the original indefinite-term labor contract and agree to extend the retirement age, if there is any change of the circumstance during the performance period of the contract resulting in the need to modify the agreed terms/conditions of employment, both parties may negotiate the extension of the retirement age again. If the employer and the employee fail to reach a renewed agreement regarding the extended retirement age, and the employer would like to terminate the employment relationship prior to the extended retirement age previously agreed upon by both parties, the relevant provisions stated in the Labor Standards Act for the unilateral termination of employment and the pension scheme adopted by the employee for the payment of severance or pension shall still apply.
(5) Where the employer and the employee agree to continue performing the original labor contract and to extend the retirement age, as the labor contract has not been interrupted, the pension scheme applicable to the employee shall continue and remain unchanged.
(6) Employees who are over the age of 65 and continue to work, and have not received old-age benefits under the Labor Insurance program, may voluntarily continue to participate in Labor Insurance, and the employer shall not refuse.
Reported by: David Tsai /Julia Kuo
5.Announce the draft amendment to the Enforcement Rules of the Labor Pension Act
On 20 January 2026, the Ministry of Labor announced the draft amendment to the “Enforcement Rules of the Labor Pension Act.” We summarize below:
(1) To stipulate a lower limit on the monthly contribution-based wage amount where the employee covered under this Act is concurrently insured under the Labor Occupational Accident Insurance, except for specified circumstances;
(2) To stipulate that, where specific categories of personnel voluntarily contribute to retirement funds pursuant to this Act, the employer or commissioning entity shall not refuse such contributions. Where the refusal occurs, such personnel may directly apply to the Bureau of Labor Insurance to handle the relevant matters;
(3) To revise the matters with which self-employed employees are required to comply when declaring and contributing retirement funds;
(4) To stipulate that employees who elect to receive a monthly pension may change such election to a lump-sum payment within 30 days from the date of the first remittance, limited to one change only, and to stipulate the payment of any difference;
(5) To stipulate that, where the employee’s survivor or designated beneficiary is a minor on the date when he or she becomes entitled to claim retirement benefits, the statute of limitations for the retirement benefit claim shall commence from the date of becoming the majority;
(6) To stipulate that the right of a survivor or designated beneficiary to claim the employee’s retirement benefits shall not be transferable, attachable, subject to set-off, or used as collateral; and
(7) To stipulate that, where a representative or responsible person who is liable for unpaid retirement contributions or overdue payment surcharges is replaced, the new representative or responsible person shall bear joint and several liability for repayment.
Reported by: David Tsai/Joe Liao
Fair Trade
6.Amendments to the Threshold of Total Sales of a Monopolistic Enterprise
On 21 January 2026, the Fair Trade Commission (FTC) passed amendments to the “Threshold of Total Sales of a Monopolistic Enterprise” at its Commissioners’ Meeting, pursuant which an enterprise whose sale amount in the last fiscal year is lower than NT$3 billion (approximately US$100 million) would typically not be monopolistic.
Reported by: Kang-Shen Liu / Sean Tsai
7.Amendments to the Thresholds and Calculation of Sales Amount of Enterprises in Combination Transactions Triggering Filing Requirement
On 21 January 2026, the FTC passed amendments to the “Thresholds and Calculation of Sales Amount of Enterprises in Combination Transactions Triggering Filing Requirement” at its Commissioners’ Meeting to raise the sales amount thresholds for combination filing, pursuant to which the global maximum sales amount in the last fiscal year is raised from NT$40 billion to NT$50 billion (approximately US$1.6 billion), the domestic sales amount is raised from NT$15 billion to NT$20 billion (approximately US$65 million) for non-financial institutions and to NT$40 billion (approximately US$1.3 billion) for financial institutions. The minimum thresholds for both global and domestic sales are increased from NT$2 billion to NT$3 billion (approximately US$100 million).
Reported by: Kang-Shen Liu / Sean Tsai
Financial
8.Interpretation of Paragraph 1, Article 18-1 of the Standards Governing the Establishment of Commercial Banks
On 15 January 2026, the Financial Supervisory Commission (FSC) issued a ruling to interpret Paragraph 1, Article 18-1 of the Standards Governing the Establishment of Commercial Banks. We summarize below:
(1) The term “mainly utilizing the internet or other forms of electronic communication channels (internet-based methods)” refers to an internet-only bank that generally establishes business relationships with its customers through internet-based methods, with all account-related matters and transaction instructions being carried out by customers themselves through internet-based methods; and
(2) To specify that an internet-only bank may provide face-to-face services to customers through customer service centers, by dispatching personnels to provide off-site services, or through financial service stations, for the purpose of conducting the operational items prescribed in this ruling, as well as the matters with which it shall comply.
Reported by: Stacy Lo/ Linda Guo
Corporate
9.Amendment to Regulations Governing Share Repurchase by TSE/TPEx-Listed Companies
On 22 January 2026, the FSC amended Articles 2, 6 and 13 of the “Regulations Governing Share Repurchase by TSE/TPEx-Listed Companies.” We summarize below:
(1) To align with the amendments to the Securities and Exchange Act, the reporting requirement relating to history of a company’s repurchase of its own shares is amended to extend the look-back period from three years to five years prior to the filing date.;
(2) The requirement that the reporting documents be bound into volumes is deleted; and
(3) To stipulate that a company shall be deemed to have completed its reporting and announcement upon transmitting the reportable matters to the Market Observation Post System.
Reported by: Mike Lu / Joe Liao
Personal Data Protection Act
10.Draft Regulations for Personal Data Incident Notification, Reporting and Response
On 22 January 2026, the Preparatory Office of the Personal Data Protection Commission (PDPC) announced the draft “Regulations for Personal Data Incident Notification, Reporting and Response” for public consultation. We summarize below:
(1) To stipulate the time limits, methods, and required contents for notifying data subjects of personal data incidents;
(2) To stipulate the time limits, methods, scope, and required contents for reporting personal data incidents;
(3) To stipulate the response measures to be taken upon becoming aware of a personal data incident;
(4) Where personal data is collected, processed, or used by an entrusted party, awareness of a personal data incident by such entrusted party subject to the Personal Data Protection Act shall be deemed as awareness by the entrusting authority, and the entrusted party shall immediately notify the entrusting authority of the incident upon becoming aware thereof and retain records of such notification;
(5) To stipulate the matters to be recorded in investigation records of personal data incidents and the retention period thereof; and
(6) To stipulate that the effective date of the Regulations shall be determined by the competent authority.
Reported by: Stacy Lo/ Zoe Chen
11.Draft Regulations for Duties, Qualifications and Training of Personal Data Protection Officer and Related Personnel
On 22 January 2026, the PDPC announced the draft “Regulations for Duties, Qualifications and Training of Personal Data Protection Officer and Related Personnel” for public consultation. We summarize below:
(1) To stipulate the duties of Personal Data Protection Officers (“PDPOs”) of government agencies;
(2) To stipulate the qualifications and requirements of PDPOs of government agencies;
(3) To stipulate that government agencies may entrust non-government entities with expertise in personal data protection to perform the prescribed duties;
(4) To stipulate the duties of designated personnel appointed by government agencies pursuant to Paragraph 2, Article 18 of the PDPA;
(5) To stipulate training requirements for personal data protection personnel; and
(6) To stipulate that the effective date of the Regulations shall be determined by the competent authority.
Reported by: Stacy Lo/ Zoe Chen
12.Draft Amendment to Enforcement Rules of Personal Data Protection Act
On 2 January 2026, the Preparatory Office of the PDPC announced a draft amendment to the “Enforcement Rules of the Personal Data Protection Act”. We summarize below:
(1) Considering that Articles 12, 18, and 20‑1 of the Personal Data Protection Act (PDPA) has authorized the competent authority to prescribe regulations regarding post‑incident reporting, safekeeping personal data files, the duties of the Data Protection Officer and related personnel, and their qualifications and training, the repeated provisions in Articles 12, 22, 24, and 25 of the Enforceemnt Rules are therefore deleted.
(2) Article 17 is amended with reference to the interpretation set forth in Constitutional Court Judgment No. 13 of 2022, concerning determination of situations where specific individuals cannot be identified.
(3) Considering that Article 21‑5 of the PDPA has exempted intelligence agencies from internal and external administrative supervision applicable to public authorities, the definition of “intelligence agencies” is added to Article 29.
(4) With reference to the amendment to Paragraph 1, Article 52 of the PDPA, the term “administrative legal entity’ in Article 31 is deleted.
(5) As the PDPA has applied to the collection, processing, and use of personal data by all public and non‑public agencies, the transitional provisions in Article 32 are therefore deleted.
Reported by: Stacy Lo/ Eden Hsieh
13.Draft Personal Data File Security Maintenance and Management Measures
On 22 January 22, 2026, the PDPC announced the draft “Personal Data File Security Maintenance and Management Measures.” We summarize below:
(1) To establish methods for calculating the number of personal data files and criteria for increases or decreases, and define the scope of management in accordance with relevant laws and regulations.
(2) To establish mechanisms for reporting, notifying, and responding to personal data incidents.
(3) To implement security management measures for personnel who collect, process, or use personal data, and regularly conduct data protection education and training.
(4) To manage the personal data files, including the protection of electronic equipment and the physical security of storage areas.
(5) For information communication systems developed by the organization or outsourced agencies, access controls and record and system event logs shall be implemented.
(6) Deleted personal data shall be unrecoverable, with deletion records retained for at least five years; deletion methods include destruction, transfer, or cessation of processing.
(7) Public agencies and large non-public agencies shall establish personal data security maintenance plans, covering personnel allocation, data scope, risk management, incident response, training, equipment and information security, audits, and continuous improvement.
(8) Large non-public agencies shall appoint dedicated personnel and establish an execution team, ensuring that management and audit roles are not concurrently held and that personnel have adequate expertise.
(9) To regularly inventory personal data and related business processes, establish registries and explanatory documentation, and implement appropriate security measures based on risk assessments.
(10) To regularly conduct drills for reporting, notifying, and responding to personal data incidents.
(11) To conduct education and training according to job responsibilities and business nature to ensure dedicated personnel understand regulations and protection procedures.
(12) To implement security measures for paper-based and electronic data, including equipment protection, secure storage, backups, encryption, and system access controls.
(13) To establish an internal audit mechanism, conducting audits at least once a year; audits of outsourced personal data handling are also required, with records retained for five years.
(14) To retain records of personal data collection, processing, or usage, evidence of implemented security measures, and records of data subject rights exercised for at least five years.
(15) To establish a continuous improvement mechanism, regularly reviewing and revising the security maintenance plan.
Reported by: Stacy Lo / Eva Chiu
Tax
14.The Ministry of Finance Announces Draft Amendments to Certain Provisions of the Estate and Gift Tax Act
On 22 January 2026, the Ministry of Finance announced draft amendments to certain provisions of the “Estate and Gift Tax Act”. The proposed amendments are intended to comply with the intent of Constitutional Court Judgment No. 11 of 2024. We summarize below:
(1) The provision designating executors of a will as estate tax taxpayers is deleted. The order of persons liable for estate tax is clarified, and such liability is limited to the value of the decedent’s estate.
(2) Where property is included in the gross estate of the decedent for taxation pursuant to Paragraph 1 of Article 15, the estate tax payable shall be calculated in proportion to the value of each donee’s property relative to the total estate, and each donee shall be liable for payment only up to the value of the property received.
(3) In cases where an executor of a will is appointed, the executor may act on behalf of the taxpayer to file estate tax returns, pay estate taxes, and apply for administrative review.
(4) Provision are added regarding the deduction for the spouse’s claim to the difference in residual marital property. Property gifted to the surviving spouse within two years prior to the decedent’s death shall be treated as part of the decedent’s existing property, and the taxpayer must actually transfer property equivalent to the amount of the claim under Article 1030-1 of the Civil Code to the surviving spouse. Such gifted property shall not be used to satisfy the taxpayer’s payment obligation.
(5) A provision is added to specify the commencement date of the estate tax filing period in cases where property is determined to belong to the decedent only after the decedent’s death by a court judgment or by a document having the same effect as a final judgment.
(6) Article 30 is amended to revise the requirements for applying for installment payment and payment in kind, and to add provisions regarding the restarting of the collection period for (i) payments approved for extension or installment under this Act, and (ii) overdue payments upon issuance of a single tax bill, as well as to allow heirs to pay estate taxes from estate deposits by majority decision.
(7) The provisions concerning the method of imposing accrued belated surcharges, referral for compulsory execution if payment is not made within 30 days after the payment period expires, and exemption from belated surcharges for taxes approved for extension or installment payment are deleted. Matters shall instead be governed by Article 20 of the Tax Collection Act and Article 50 of the Administrative Procedure Act.
Reported by: Alex Li/ 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) |
