{"id":5628,"date":"2025-10-08T17:45:21","date_gmt":"2025-10-08T09:45:21","guid":{"rendered":"https:\/\/www.lexgroup.com.tw\/5628\/"},"modified":"2025-10-08T18:02:43","modified_gmt":"2025-10-08T10:02:43","slug":"%e6%83%87%e5%ae%89%e6%b3%95%e4%bb%a4%e9%9b%99%e9%80%b1%e5%88%8a-%e7%ac%ac473%e6%9c%9f","status":"publish","type":"post","link":"https:\/\/www.lexgroup.com.tw\/en\/5628\/","title":{"rendered":"Lexgroup Newsletter (Issue No. 473)"},"content":{"rendered":"\n

Cyber Security<\/strong><\/strong><\/p>\n\n\n\n

1.Amendment to Cyber Security Management Act<\/u><\/em><\/strong><\/p>\n\n\n\n

On September 24, 2025, the President announced the amendments to the Cyber Security Management Act.  We summarize below:<\/p>\n\n\n\n

(1) The competent authority is changed from the Executive Yuan to the Ministry of Digital Affairs (moda).<\/p>\n\n\n\n

(2) Government agencies are prohibited from downloading, installing, or using products that endanger national cyber security.\u00a0 However, if there is a business need with no alternatives, such products may be used upon approval by the Chief Information Security Officer and ratification by the competent authority, with usage subject to project-based control and record-keeping.\u00a0 The same restrictions apply to specific non-government agencies designated by the competent authority.<\/p>\n\n\n\n

(3) The moda may conduct regular or ad hoc audits on the implementation of cyber security maintenance plans by each agency.\u00a0 Where deficiencies or areas for improvements are identified, the agency shall submit an improvement report, and when necessary, provide explanations or make adjustments.<\/p>\n\n\n\n

(4) Government agencies and specific non-government agencies shall appoint a Chief Information Security Officer and dedicated cyber security personnel.\u00a0 When necessary, government agencies may review the qualifications and suitability of such personnel.\u00a0 Those who refuse or fail to pass may not engage in cyber security tasks involving state secrets, military secrets, and national defense secrets.<\/p>\n\n\n\n

(5) To strengthen regulation of outsourced cyber system establishment and maintenance, including requiring contractors to establish effective cyber security management mechanisms, ensuring that operational procedures include cyber security measures or have passed third-party certification, and mandating written contracts between agencies and contractors.\u00a0 In addition, agencies shall cooperate with the moda in conducting cyber security exercises.<\/p>\n\n\n\n

(6) To increase penalties for non-government agencies violating obligations under the Act.\u00a0 Failure to report cyber security incidents as required is subject to fines of up to NT$10 million.\u00a0 Violations of cyber security maintenance plans, reporting, or response mechanisms that remain uncorrected within the deadline set by the central competent authority are subject to fines of up to NT$5 million.<\/p>\n\n\n\n

(7) Addition of investigative powers for the central competent authority with respect to major cyber security incidents involving specific non-government agencies, including notifying the parties or related persons to attend and present their statements, requesting the submission of independent third-party reports, or dispatching personnel to conduct necessary inspections.<\/p>\n\n\n\n

Reported by: Stacy Lo\/ Alva Wu<\/strong><\/strong><\/p>\n\n\n\n

Tax<\/strong><\/strong><\/p>\n\n\n\n

2.Ministry of Finance Directive: Interpretation of Article 35 of the Value-added and Non-value-added Business Tax Act<\/u><\/em><\/strong><\/p>\n\n\n\n

On September 10, 2025, the Ministry of Finance announced the interpretation of Article 35 of the Value-added and Non-value-added Business Tax Act (VAT Act).\u00a0 The ruling provides the following grace period and rules for penalties exemption for individuals who frequently publish creative works or share information online (internet influencers) and for platforms that use the content from internet influencers to broadcast advertisements or provide related paid services, obtain service income from advertisers or paying viewers, but fail to comply with the VAT Act in as to tax registration, issuance and delivery of uniform invoices, or the filing and payment of business tax:<\/p>\n\n\n\n

(1) Those who failed to complete tax registration in accordance with the law before June 30, 2026 shall be exempt from penalties under Article 45 of the Business Tax Act.<\/p>\n\n\n\n

(2) Those who failed to issue and deliver uniform invoices in accordance with the law before June 30, 2026 shall be exempt from penalties under Article 52 of the Business Tax Act and Article 44 of the Tax Collection Act.<\/p>\n\n\n\n

(3) Those who failed to declare sales amounts and pay business tax in accordance with the law before July 15, 2026 shall be exempt from penalties under Article 51 of the Business Tax Act.<\/p>\n\n\n\n

Reported by: Alex Li\/ Alva Wu<\/strong><\/strong><\/p>\n\n\n\n

Fair Trade<\/strong><\/strong><\/p>\n\n\n\n

3.Amendments to Directions for Enterprises Filing for Merger<\/u><\/em><\/strong><\/p>\n\n\n\n

On 16 September 2025, the Fair Trade Commission amended the “Directions for Enterprises Filing for Merger,” changing “Chinese” in Point 6 to “the language of the Republic of China.”<\/p>\n\n\n\n

Reported by: Kang-Shen Liu \/ Sean Tsai<\/strong><\/strong><\/p>\n\n\n\n

Financials<\/strong><\/strong><\/p>\n\n\n\n

4.Climate-related Disclosure Examples under the IFRS Sustainability Disclosure Standards<\/u><\/em><\/strong><\/p>\n\n\n\n

On 17 August, 2023, the Financial Supervisory Commission (FSC) published Taiwan’s Roadmap for Adopting IFRS Sustainability Disclosure Standards, under which Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEx) listed companies will directly adopt the FSC-endorsed IFRS Sustainability Disclosure Standards in three phases beginning\u00a0 from the fiscal year of 2026, and disclose sustainability-related financial information in a dedicated section of their annual reports.\u00a0 The first phase applies to listed companies with paid-in capital exceeding NT$10 billion (approximately 125 companies), which shall adopt from the year of 2026.<\/p>\n\n\n\n

The FSC, together with TWSE, TPEx, and the Accounting Research and Development Foundation, has established a project task force and set up an \u201cIFRS Sustainability Disclosure Standards\u201d portal.\u00a0 The portal provides translations of the IFRS Sustainability Disclosure Standards and related guidance, together with FAQs on practical issues and disclosure examples, to help companies prepare climate-related disclosures.<\/p>\n\n\n\n

Taking industry characteristics into account, the task force has released climate-related disclosure examples for five industries, including steel manufacturing, hardware, semiconductors, oil and gas, and electronics manufacturing services.\u00a0 In addition, the task force has recently released medical equipment and supplies, apparel and accessories, industrial machinery and goods, commercial banking, and building materials.\u00a0 All ten sets of examples are centralized under \u201cPractical Guidance and Examples\u201d on the portal.<\/p>\n\n\n\n

Reported by: Stacy Lo\/ Linda Guo<\/strong><\/strong><\/p>\n\n\n\n

5.Regulations Governing Cross-selling among Subsidiaries of Financial Holding Company<\/u><\/em><\/strong><\/em><\/strong><\/p>\n\n\n\n

On 23 September 2025, the FSC announced the draft amendment to the \u201cRegulations Governing Cross-selling among Subsidiaries of Financial Holding Companies\u201d for public consultation, which expand the scope of cross-selling for securities business. We summarize below:<\/p>\n\n\n\n

(1) The scope of account opening for securities business has been expanded from “opening a securities brokerage account” to “opening a securities brokerage account or securities introducing business account”; and<\/p>\n\n\n\n

(2) With the installation of online order terminals, the counterparty for investor’s orders has been expanded from “securities firms” to “securities firms or securities introducing brokers”.<\/p>\n\n\n\n

Reported by: Stacy Lo\/ Zoe Chen<\/strong><\/strong><\/p>\n\n\n\n

Securities<\/strong><\/p>\n\n\n\n

Draft Amendment to the \u201cRegulations Governing the Issuance of Call (Put) Warrants by Issuers\u201d<\/u><\/em><\/strong><\/p>\n\n\n\n

On 12 September 2025, the FSC announced a draft amendment to Article 8 of the \u201cRegulations Governing the Issuance of Call (Put) Warrants by Issuers,\u201d proposing to include active exchange-traded funds within the scope of underlying assets eligible for issuers to issue call (put) warrants.<\/p>\n\n\n\n

Reported by: Jeffrey Liu\/ Eden Hsieh<\/strong><\/strong><\/p>\n\n\n\n

7.Amendment to Regulations Governing Offshore Securities Branches<\/u><\/em><\/strong><\/p>\n\n\n\n

On 18 September 2025, the FSC issued a ruling amending the \u201cRegulations Governing Offshore Securities Branches.\u201d\u00a0 We summarize below:<\/p>\n\n\n\n

(1) It is stipulated that when an Offshore Securities Unit (OSU) conducts customer entrusted account custody business and its customers are individuals, juristic persons, government agencies, or financial institutions located outside the Republic of China (Taiwan), the OSU may also open a foreign currency deposit account with a foreign custodian institution to hold customer funds.<\/p>\n\n\n\n

(2) It is stipulated that the term \u201cforeign custodian institution\u201d refers to an institution, or its controlling or subsidiary entity, that has established a securities firm or bank branch\/subsidiary within Taiwan; if the custodian institution or its affiliates have not established such a presence in Taiwan, the custodian institution must be a financial institution that meets specific credit rating standards.<\/p>\n\n\n\n

Reported by: Jeffrey Liu\/ Eden Hsieh<\/strong><\/strong><\/p>\n\n\n\n

Editors:<\/strong>
Mike Lu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Stacy Lo\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Jeffrey Liu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Kang-Shen Liu\u00a0\u00a0\u00a0 (Partner)<\/strong>
David Tsai\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Angela Lin\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Paul Hsu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong>
Alex Li\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong><\/td>		Counselors:<\/strong>
Echo Yeh<\/strong>
Sue Su<\/strong>
Jolene Wang (Lexcel Partners IP Firm)<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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