Investment Areas and Safeguards

Question 1: Are there any restrictions in terms of scope and sector for foreign investment in Taiwan?

Answer:

Currently, Taiwan has deregulated nearly 95% of all foreign investment. Taiwan allows foreigners to invest in all sectors except in a few areas where conditional restrictions apply. These areas include sectors which may impinge upon national security, public harmony, social behavior, public health and those sectors restricted under law or prohibited under international agreements. Therefore, some foreign investments in Taiwan are managed under the negative list.

For more detailed information, please refer to the Negative List for Investment by Overseas Chinese and Foreign Nationals.

Question 2: Can the businesses of overseas Chinese and foreign nationals be expropriated or acquired?

Answer:

According to the Statute for Investment by Overseas Chinese and Articles 13 and 14 of the "Statute for Investment by Foreign Nationals"

• In the event that the government expropriates or acquires an invested enterprise for national defense reasons, the investor thereof whose investment is less than 45％ of the total capital amount of the invested enterprise shall be entitled to a reasonable compensation.
• In the event that the investor's investment accounts for 45％ or more of the total capital amount of the enterprise in which he invests, the invested enterprise shall not be subject to requisition or expropriation as long as the said capital contribution rate of the investor remains unchanged for a period of twenty years after the commencement of business of the invested enterprise.

For more detailed information, please refer to Investment-related Laws and Regulations.

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