"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 for-profit businesses repatriating funds from overseas are eligible for the applicable tax rate of 8% or 10%. If they apply for substantial investment and obtain a proof of completion, they may receive a 50% tax refund and are eligible for a tax rate of 4% or 5%.
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, who 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 brings investment vigor to the country, keeps our industrial development active, and most importantly, maintains steady economic growth.