Newsletter
Fine against illegal investment is increased by 40 times
The President promulgated an amendment to Article 93-1 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (the "Act") on April 24, 2019 (the "Amendment"), increasing the maximum fine for Chinese investors' investments in Taiwan without permission from NT$600,000 to NT$25 million and the ceiling for other violations of the Act from NT$300,000 to NT$2,500,000. The Amendment also specifies that Chinese investors who commit minor transgressions, but take corrective actions within a prescribed period, may be exempted from being fined. The Amendment shall enter into effect from June 1, 2019. The effective date of the Amendment shall be announced by the Executive Yuan. The Mainland Affairs Council of the Executive Yuan says that the Ministry of Economic Affairs and Financial Supervisory Commission will establish standards for penalties based on seriousness of the violations and the impacts on the country or society therefrom. The Amendment is worth the attention of Chinese corporations since the scale of the increase of the maximum fine is forty times more than before.