TAIWAN Trends and Developments Contributed by: Sarah Wu and Andrea Chen, Lee & Li Attorneys-at-Law
In Taiwan, local companies may remit for- eign currencies of up to USD100 million, or its equivalent, to and from Taiwan without foreign exchange approval in each calendar year, and individual Taiwanese residents may remit USD10 million, or its equivalent. This threshold amount is subject to determination by the CBC from time to time, at its discretion, taking into considera- tion the economic and financial conditions in Tai- wan and the need to maintain order in the foreign exchange market in Taiwan. These limits apply to remittances involving conversion between New Taiwan dollars and US dollars or other for- eign currencies for non-trade or services-related activities. Private corporations are also advised to register all medium and long-term foreign debt with the CBC. Except for certain limited circumstances provid- ed for by law (eg, foreign investment approved by the Department of Investment Review of the Ministry of Economic Affairs of Taiwan or foreign institutional investors registered with the Taiwan Stock Exchange), and subject to certain require- ments but without foreign exchange approval, a foreign national may remit foreign currencies of up to USD100,000 (or its equivalent) to and from Taiwan per remittance if the required docu- mentation is provided to the ROC authorities. This limit applies to remittances involving con- version between New Taiwan dollars and any foreign currency. If any of the above-mentioned limits is exceeded, approval from the CBC will be required ( “CBC Approval” ). CBC Approval is usually at the CBC’s discre- tion, and the timeline for obtaining such approval would vary on a case-by-case basis, since the relevant laws and regulations do not specify the review period. Once approved by the CBC, the daily conversion amount will also be subject to the CBC’s instruction and will typically vary
depending on the total deal amount, the current foreign exchange markets and the CBC’s view on foreign exchange control of the New Taiwan dollar. A pre-communication with the CBC is always preferred and advisable to understand the attitude of the CBC and to facilitate the appli- cation and ensure the fund flows run as smooth- ly as expected. Green loan principles and investment in green energy In recent years, the Taiwanese government has focused its policy on energy and environmental, social and governance (ESG) objectives. With the promotion of green energy, the demand for green energy sources and the acquisition of green energy projects in the Taiwanese market continue to thrive. The trend accordingly led the market to the dynamic development of financ- ing in renewable energy-related industries, and a growing number of local lenders have adopted green loan principles in the provision of acquisi- tion financing for local companies in Taiwan. The Taiwanese government approved the Spe- cial Act for Forward-Looking Infrastructure in July 2017, and plans to invest an estimated total of TWD882.49 billion in this large-scale infrastruc- ture programme, aiming to incentivise public and private corporate investment of TWD1.78 trillion. Of all the infrastructure projects, green energy is expected to obtain the largest investment, espe- cially in relation to wind power energy plans. The Taiwanese government has set a target of installing 5.5 GW of offshore wind power capac- ity by 2025. As a result, the FSC has made the green finance policy one of the most important policies, and is encouraging domestic funds to invest in the green energy industry. The FSC has also publicly pledged to support private sector investment in offshore wind farms, and the green
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