Simplified Procedures for Reporting Overseas Investment Losses
The Ministry of Finance has simplified the procedures for companies reporting losses from overseas investments. Previously, when businesses faced capital reductions to offset losses, mergers, bankruptcies, or liquidations in their foreign investments, they were required to provide documents verified by foreign embassies or representative offices. According to the latest directive, except for investments in Mainland China, if companies can obtain one of the following three types of documents, they are exempt from such verification:
- Certificates issued by the competent authority in the foreign investment’s location.
- Income tax filing documents issued by the foreign tax authority.
- Audit reports certified by accountants either from the foreign country or Taiwan.
It’s important to note that this relaxation does not apply to investments in Mainland China. For such cases, relevant proof documents must still undergo verification procedures by organizations like the Straits Exchange Foundation or the Association for Relations Across the Taiwan Straits.
