Industrial Development Administration, Ministry of Economic Affairs

Regulations on Industries Investment from Repatriated Offshore Funds announced

Industries Investment from Repatriated Offshore Funds

"The Management, Utilization, and Taxation of Repatriated Offshore Funds Act"and its related sub-regulations came into force on August 15, 2019 as a guideline for repatriation of funds and expired on August 16th, 2021. The Act stipulates that individuals or profit -seeking enterprises repatriating funds from overseas are eligible for the applicable tax rate of 8% or 10%. By substantial investment and obtaining a proof of completion, the 50% tax refund and a tax rate of 4% or 5% are eligible for the investment.

Subject to "Regulations on Industries Investment from Repatriated Offshore Funds", an individual or a profit-seeking enterprise may submit an investment plan to the Ministry of Economic Affairs for approval within one year from the date of depositing the funds. Individuals or profit-seeking enterprises, fail to invest according to the approved plan and fail to deposit the funds into the segregated foreign exchange deposit account, withdraw the funds for other purposes that are not in the approved plan, or fail to submit the recordation in accordance with regulations, shall pay the differences of taxable amount.

The aforementioned act fosters repatriation of funds to our industries and vitalizes business start-ups and expansion of production capacity. The capital can be used to purchase buildings, facilities and technologies for business operations or production. Repatriation of funds dives investment momentum to the country, energizes industrial development, and most importantly, keeps economic growth steadily.