On 29 April 2016, the Taiwan approved draft legislation for the introduction of controlled foreign company (CFC) rules. Currently, Taiwan has no specific rules targeting CFCs, although the introduction of rules has been under consideration for several years.
Under the draft rules, foreign subsidiaries located in low-tax jurisdictions would be considered CFCs if controlled by a Taiwan taxpayer and its related parties. For this purposes, low-tax jurisdictions include jurisdictions with a corp…