Industry
1.Amendments to the Statute for Industrial Innovation
On September 30, 2026, the President announced amendments to certain provisions of the Statute for Industrial Innovation. The key amendments are summarized below:
(1) Increase in the Annual Limit for Income Tax Deferral on Stock-Based Employee Compensation (Article 19-1):
To strengthen incentives for companies to attract and retain talent, the annual limit on the market value of shares acquired by employees as stock-based employee compensation that may, at the employees’ election, be excluded from their taxable income in the year the shares are acquired or become disposable, and instead be taxed upon their subsequent transfer or other statutory taxable event, has been increased from NT$5 million to NT$10 million.
(2) Relaxation of Eligibility Requirements for Tax Incentives Available to Venture Capital Enterprises Organized as Limited Partnerships (Article 23-1):
To provide venture capital enterprises with greater investment flexibility, the minimum ratios of cumulative investments in innovative startups to total capital contributions actually received in the third, fourth, and fifth years of establishment have been adjusted to 10%, 20%, and 30%, respectively, with an additional requirement of 40% in the sixth year. In addition, the age limit for eligible innovative startups has been extended from less than five years to less than eight years, and the scope of foreign companies eligible for recognition as conducting actual operational activities in Taiwan has been expanded to include those with directly or indirectly controlled subsidiaries or branch offices established in Taiwan.
(3) Expansion of Tax Incentives for Individual Investments in High-Risk Innovative Startups (Article 23-2):
To encourage greater private investment in innovative startups, the age limit for eligible domestic high-risk innovative startups recognized by the central government authority in charge of the industry concerned has been extended from less than five years since incorporation to less than eight years, thereby expanding the scope of cash investments eligible for deduction from an individual’s consolidated income.
Reported by: Mike Lu / Bradley Chen
Financial
2.Regulations Governing Family Office Advisory Services by Banks
On 8 October 2026, the Financial Supervisory Commission (FSC) issued the “Regulations Governing Family Office Advisory Services by Banks”, which took effect on the same day. We summarize below:
(1)A bank applying to provide family office advisory services must have obtained FSC approval for, and be conducting, high-assets business, and must have conducted family-office-related pilot business for at least one year with the FSC’s approval pursuant to the “Operation Directions for Financial Institutions Applying for Business Trials in Local Asset Management Zones”.
(2) The scope of family office advisory services includes integrated services involving the bank’s existing approved businesses, such as investment in financial products and financing, trust services and insurance services, as well as advisory, planning and recommendation services relating to family wealth management, family business succession and family governance. Such services may include advice on the establishment of family offices and family charters, inheritance and estate matters, succession arrangements, philanthropy, education and training programs, and wealth management matters, including legal, tax and risk management matters.
(3) Where a service requires approval from the competent authority for the relevant industry, or is required by law to be provided by other professional institutions, the bank must cooperate with a third-party institution, and the relevant service must be provided by such third-party institution within the scope permitted under applicable laws and regulations.
(4) Family members of a high-assets client are not themselves required to qualify as high-assets clients, provided, however, that the requirements on eligible customers under the respective industry laws and regulations must still be complied with.
(5) A bank providing family office advisory services must establish internal control systems and risk management measures and comply with requirements relating to information confidentiality and prevention of conflicts of interest. Where the provision of such services involves other applicable laws or regulations, the bank and its personnel must obtain the relevant approvals, licenses or qualifications. When cooperating with third-party institutions, the bank must also establish mechanisms for reviewing such institutions, allocating responsibilities, handling disputes, transmitting and protecting personal data, and periodically reviewing the cooperation relationship.
(6) A bank must fully disclose to its clients the fees payable, its relationship with any third-party institution and the respective scope of services and responsibilities of each party, as well as available complaint channels and dispute resolution mechanisms. The bank and the third-party institution may not charge duplicate fees for the same service. Any disclosure, referral or cross-use of client information requires the client’s prior written consent.
(7) A bank must establish anti-money laundering and counter-terrorism financing control mechanisms in accordance with applicable requirements and implement customer due diligence, transaction monitoring and management of high-risk customers.
(8) When applying to provide family office advisory services, a bank must submit to the FSC the minutes of the relevant board resolution, a business plan, internal operating rules and control procedures, a regulatory compliance statement, and any other documents required by the FSC. A Taiwan branch of a foreign bank may instead submit a letter of consent issued by a person authorized by its head office or regional headquarters.
Reported by: Stacy Lo / Maggie Tsai
Securities
3.Ruling Pertaining to Subparagraph 2, Article 15 of the Securities and Exchange Act
On 6 October 2026, the FSC issued a ruling pertaining to Subparagraph 2, Article 15 of the Securities and Exchange Act, which took effect on the same day. We summarize below:
(1) A new category of permissible investment for securities firms has been added. Where a domestic issuer or foreign issuer whose shares are not registered on the emerging stock market is being advised by a securities firm acting as the lead securities underwriter in connection with an application for listing on the Taiwan Innovation Board or a primary listing on the Taiwan Innovation Board, such securities firm may purchase newly issued shares issued by the issuer through a capital increase during the period from the date on which the basic information of the issuer under its guidance is reported to the Taiwan Stock Exchange to the date before the listing application is submitted.
(2) The above investment may only be made by an integrated securities firm concurrently engaging in securities brokerage, underwriting and proprietary trading businesses, and is subject to the applicable investment limits and internal control requirements. These include that the aggregate amount of such investments may not exceed 5% of the securities firm’s net worth. Other applicable requirements include limits on investments in individual issuers and aggregate investments, as well as capital adequacy requirements. The types and scope of such investments must be approved by the board of directors, and, prior to making such investment, the securities firm must obtain the investee company’s most recent financial statements audited or reviewed by a certified public accountant as a reference for assessing the transaction price. If the counterparty is a related party, an appraisal report issued by a professional appraiser or an opinion from a certified public accountant on the reasonableness of the transaction price must also be obtained.
Reported by: Jeffrey Liu/ Linda Guo
SITE/SICE
4.FSC Amends Ruling on SITEs and SICEs Conducting Business Related to Offshore Funds Lacking the Nature of Securities Investment Trust Funds
On 13 October 2026, the FSC issued the “Ruling on Types of Business Approved by the Competent Authority Pursuant to Subparagraph 3, Paragraph 3, Article 3 and Subparagraph 3, Paragraph 3, Article 4 of the Securities Investment Trust and Consulting Act” (2026 Ruling). The 2026 Ruling amends the regulations governing Securities Investment Trust Enterprises (SITEs) and Securities Investment Consulting Enterprises (SICEs) conducting sales and advisory services for offshore fund products that do not possess the nature of securities investment trust funds, as well as providing administrative services to OBUs, OSUs, banks, or securities firms. The previous ruling issued on 25 October 2024 (2024 Ruling) was replaced with immediate effect. The major revisions under the 2026 Ruling focus on application documentation requirements, reporting procedures, and transitional provisions:
(1) Adjustment of Application Documentation:
Regarding the documents required for an initial application, while the 2024 Ruling required the submission of a “company profile of the mandating foreign asset management institution,” the 2026 Ruling has adjusted this requirement to “documentary evidence of the foreign asset management institution having obtained an asset management license or qualification in its country of registration.”
(2) Streamlining of Reporting Procedures for Approved Changes:
Regarding the reporting of changes to approved matters, the 2024 Ruling stipulated that reports must be submitted to the Securities Investment Trust and Consulting Association (SITCA) within ten business days from the date of the change. The 2026 Ruling consolidates change reporting into regular periodic reporting, specifying that the approved business, as well as any changes to approved matters, need only be reported in accordance with SITCA rules by the tenth business day of each month.
(3) Scope of Existing Operators:
While the 2024 Ruling exempted only existing operators conducting business under Subparagraphs 1 and 2 of Point 1 from reapplying for FSC approval, the 2026 Ruling extends this exemption to existing operators conducting business under Subparagraph 3 of Point 1, namely, providing administrative support services to banks and securities firms.
Reported by: Jeffrey Liu/ Emilie Chang
| Editors: Mike Lu (Partner) Stacy Lo (Partner) Jeffrey Liu (Partner) Kang-Shen Liu (Partner) David Tsai (Partner) Angela Lin (Partner) Paul Hsu (Partner) | Counselors: Echo Yeh Sue Su Jolene Wang (Lexcel Partners IP Firm) |
