2018.5.29
Tiffany Hsiao
The Legislative Yuan adopted the amendments to Article 19-1 and Article 72 of the Statute for Industrial Innovation (hereinafter, the “Statute”) during the 14th Meeting of the 5th Session of the 9th Term on May 29, 2018. These amendments are highlighted below:
Under the current requirements, the income tax for the stock remuneration of up to NT$5 million which is received by a company’s employee may be assessed based on the transfer price at the time of actual transfer. However, to further enhance the retention of talents, Article 19-1, Paragraph 2 of the Statute as amended changes the income tax assessment method for stock remuneration to the current price of the stock upon acquisition by the employee or the actual transfer price, whichever is lower. Meanwhile, since internal transfer of personnel by a domestic company within its corporate group is a relatively common operating approach, Paragraph 3 is revised to ease the applicable conditions for an employee’s shareholding and years in service and stipulates that after a company’s employee receives remuneration stock, the employee is required to hold the stock and continue to serve the company for at least two years, provided that if the employee is transferred within the company’s corporate group, the years in service of such employee in the parent company and any subsidiary may also be combined. In addition, the requirement that each employee shall be eligible for a tax deferred amount of NT$5 million each year remains unchanged.
Article 72 of the Statute is also revised so that the above new system following the amendments will be implemented until December 31, 2019.