Taiwan Legislature Finance Committee statement concerning Taiwan joining the CRS

June 8th, 2016 Legislative Yuan Completed Preliminary Review of Draft Bill regarding Taiwan CFC and PEM rules. The Finance Committee of the Legislative Yuan completed preliminary review of draft amendments (i.e. Article 43-3 and Article 43-4) to the Income Tax Act, which incorporates regulations concerning Controlled Foreign Company (“CFC”) and Place of Effective Management (“PEM”), respectively.

According to news reports, the draft amendments are expected to come into force in 2018 at the earliest, under the premise that the China-Taiwan Cross-Strait Tax Agreement is effectuated, the Common Reporting Standard is executed, and relevant proposed bylaws have been adequately planned and properly advocated.
Legislators approve amendments to deal with firm tax evasion TAIPEI, Taiwan -- In an attempt to curb tax evasion by corporations, the Legislature's Finance Committee yesterday made amendments to the Income Tax Act, but the new regulations won't be implemented just yet, Finance Minister Sheu Yu-jer said.

To lessen the new regulations' adverse impact on companies, three conditions have to be met beforehand, Yu said.

They are the implementation of the cross-strait taxation agreement; the adoption of the Common Reporting Standard (CRS), an information standard for the automatic exchange of information developed in the context of the Organisation for Economic Co-operation and Development; and lastly, government communication with local companies about the new rules to alleviate concerns they might have.
Taiwan has a strong network of Double Taxation Agreements

Taiwan has 16 comprehensive DTAs
Tax Treaty Policy.
The ROC's general policy toward tax treaties is to avoid double taxation, prevent fiscal evasion and strengthen substantive relations. The tax treaties that the ROC has entered into follow the OECD model and take into consideration matters relating to the political and fiscal status, economics, and trade of the mutual parties.

Comprehensive income tax treaties which cover all income flows: Australia, Belgium, Denmark, Gambia, Indonesia, Macedonia, Malaysia, the Netherlands, New Zealand, Senegal, Singapore, South Africa, Swaziland, Sweden, Vietnam and UK.
Tax Justice Network shines a light on Taiwan's offshore banking units Taiwan, the unnoticed Asian tax haven "We now have a couple of questions for the OECD, the global body that has taken most responsibility for creating international financial transparency.

With all these red flags, why is Taiwan not on the 131-member list for its Global Forum, the body that carries out peer reviews and puts pressure on countries to shape up, transparency-wise?

This may well be China’s influence, seeking to keep Taiwan out of all international fora, as it has done for this “splittist” state for many years, in many different ways. This state of affairs may also suit powerful people in the Chinese leadership, for more personal financial reasons.

Can we look forward to seeing Taiwan subjected to the Global Forum’s Peer Review Process? And if not, could we please have an explanation for why not?"