Foreign investments (excluding investments from Chinese investors, which are subject to a separate set of investment regulations, “PRC Investments”) are generally subject to the “Statute for Investments by Foreign Nationals”. A Foreign Investment Approval (“FIA”) issued by the Department of Investment Review of the Ministry of Economic Affairs (“MOEADIR”) is a prerequisite for foreign inbound investment. Foreign investors may invest in most business sectors except for those on the Negative List prescribed by MOEADIR. The Negative List specifies certain “Prohibited Industries”, in which no foreign investment is permitted, and “Restricted Industries”, in which special permits/licenses are required or foreign investors’ shareholding is subject to certain limitations. For PRC Investments, the Regulations Governing Investments by PRC Persons (the “PRC Investment Regulations”) shall apply. According to the PRC Investment Regulations, a PRC Person may invest in certain industries identified on the “List of Permitted Industries” as promulgated by MOEADIR from time to time. Article 3 of the PRC Investment Regulations defines the term "PRC Person" as (a) a PRC citizen, (b) a PRC entity or (c) a corporate entity incorporated in a third jurisdiction ("Non-PRC Jurisdiction") which is controlled or more than 30% owned (directly or indirectly) by a PRC citizen or a PRC entity.

The foreign investment regime in Taiwan focuses on both economic impact and national security. In addition, MOEADIR will also consider the negative effect on public policy, morals and national health. Having said the above, Taiwan welcomes and actively promotes foreign direct investment and generally maintains transparent regulatory and accounting systems. 

All foreigners, regardless of their nationality or place of organization, will be considered foreign investors. Investments from Hong Kong and Macau are generally treated as foreign investments under “Laws and Regulations Regarding Hong Kong & Macao Affairs”. However, PRC Investments are subject to a separate set of investment regulations.

All sectors are subject to foreign investment screening, subject to the prohibition or restriction prescribed on the Negative List or the List of Permitted Industries as aforesaid.

There is no threshold prescribed under the law except for the restrictions prescribed on the Negative List (for foreign investments) or the “List of Permitted Industries” (for PRC investments). All investments from foreign investors and PRC Persons are subject to foreign/PRC investment approval.

The FIA issued by MOEADIR is a prerequisite for foreign investments / PRC Investments. The filing under related regulations is mandatory.

Yes. The FIA issued by MOEADIR is a prerequisite for foreign investments / PRC Investments, and thus the FIA will be required prior to closing.

MOEADIR has slightly loosened some procedural requirements, such as the acceptance of e-filing. It is also our observation that MOEADIR takes a longer time to complete its review of applications in the wake of the pandemic.

The authority has not published the statistical information for investments that have been blocked or opposed. As above, it is our observation that MOEADIR takes a longer time to complete its review of applications in the wake of the pandemic.

MOEADIR could restrict or prohibit a foreign investment on the ground that: (1) such investment may negatively affect national security, public order, morals, or national health; or (2) such investment is restricted or prohibited by the law. MOEADIR could restrict or prohibit a PRC Investment on the ground that: (1) such investment is economically monopolistic or oligopolistic; (2) such investment is politically, socially, or culturally sensitive or may affect national security; (3) such investment has an adverse effect on domestic economic development or financial stability; or (4) such investment is restricted or prohibited by the law. However, the authority has not published the statistical information for investments that have been blocked or opposed.

In response to the surge of foreign investment and PRC investments, the regulatory authority underwent an organization reform in September 2023, from the investment commission to MOEADIR. This restructuring is expected to enhance the density of reviews and involve more high-level officials in the reviews.

Currently investments from Hong Kong and Macau are generally treated as foreign investments under “Laws and Regulations Regarding Hong Kong & Macao Affairs”. However, authorities are reviewing related regulations and considering reinforcing the regulation on Hong Kong and Macau investment. It is possible that regulations in relation to Hong Kong & Macao investments may be amended in the near future.