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Family Business Succession Planning and Second Generation Back to Taiwan Series- Introductions on Major Points of the Amendments to the Act for the Recruitment and Employment of Foreign Professionals



 I. Preface
 
The amended articles of the Act for the Recruitment and Employment of Foreign Profession (hereinafter "the Act") were adopted by the Legislative Yuan's third reading on 18 June 2021 (hereinafter "the Amendment").  The Act was enacted and promulgated on 22 November 2017, and came into force on 2 July 2018.  The Amendments aim to boost the recruitment of foreign professionals, simplify job and residence application procedures, increase the incentives for long-term stay in Taiwan, and perfect their family reunion and demand for health insurance.  Hopefully, the Amendments can bring more international talents to develop and work in Taiwan, and further build Taiwan into a talents pool in the Asia-Pacific region and also make it become "Asian Silicon Valley."
 
In addition, it should be particularly noted that in the early years, many Taiwanese entrepreneurs sent their children abroad to receive education, live and work when they were young, and thereafter hope that their children can return to Taiwan to take over their businesses or manage assets when they grow up.  Given that it is quite common for their children overseas to have a good job abroad because of their own expertise, they cannot let go of the connections and achievements they have already had over these years abroad.  Also, they may consider whether or not they can successfully take over their family business after they have rashly returned to Taiwan.  Therefore, suppose they have the same opportunity to serve and render expertise in Taiwan as they do in foreign countries, it would be of great help to encourage the second generation of enterprises to return to work and live in Taiwan.
 
The following will briefly deal with the three major points of the draft Amendments to the Act and related measures, so that foreign professionals who desire to work in Taiwan or employers who desire to recruit foreign professionals into Taiwan can refer to the regulations and plan beforehand.
 
II.  Three major points of the Amendments
 
(1)  Add the applicable target of professional work
First of all, the Amendments relax the scope of professional work by adding foreign teachers specializing in specific subjects and experimental education work into the definition of profession work (Article 4 of the Amendments).  Originally, teachers from foreign schools under high schools are only allowed to teach foreign languages.  However, in response to the educational needs of professionals' children returning from overseas and in line with the government's bilingual policy to build an English-speaking environment, foreign teachers with expertise in specific subjects are included as professional workers.  Also given that teaching of foreign language courses, teacher training, course research and development, and activity promotion at experimental education are also professional works, they are also included.
 
To newly add the expertise and accreditation regulations for special professionals:  
The Amendments comprehensively list eight major areas, and newly add the sector of national defense and the accreditation mechanism by which the competent authority (National Development Council) will consult with the relevant central business competent authority (Article 4 of the Amendments).
 
To loosen up the qualifications for outstanding graduates to work in Taiwan:  Graduates from the world's top 500 universities who come to Taiwan for technical and professional works may be exempted from the restriction of over two-year experience in relevant works (Article 6 of the Amendments).
 
(2) Improve residence and dependent regulations
To simply procedures for applying for work permits:     
Originally, if foreign professionals and their dependents are allowed to reside permanently, they must still apply to the Ministry of Labor for a work permit; in the future, no application is required (Article 7 of the Amendments).  The Employment Gold Card must be re-applied upon its expiration according to the current law; in the Amendments, one may apply for an extension of stay for 6+6 months (Articles 9 and 13 of the Amendments).  According to the current law, those who enter the country with visa exemption or visa suspension cannot apply for a residence certificate until they have applied for a stay visa or resident visa of an appropriate period; in the future, they may directly apply for a residence certificate (Article 12 of the Amendments).
 
To relax the relevant regulations for applying for permanent residence:
In view of the frequent movement of foreign professionals across countries and in order to enhance the recruitment, the period of stay for permanent residence application is changed from 183 days per year to 183 days per year on average; the period of acquisition and residence for foreign special professionals is shortened from 5 year to 3 years, and those who have obtained a master's degree or a doctor's degree in Taiwan can be deducted 1 to 2 years from the required period of stay for permeant residence application (Article 14 of the Amendments).  As for the calculation of the period of stay for permanent residence application filed by their dependents, it will be the same as that of the professional applicants (Article 16 of the Amendments).

(3)   Social security and tax measures
The Amendments additionally encompass the targets of the national health insurance who are exempted from the waiting period for enrolling in health insurance.
 
 Originally, only foreign professional employees and their dependents may enroll directly to the national health insurance program; in the future, foreign special professionals and foreign senior professionals who are employers and self-owned business owners as well as their dependents are all eligible to enroll in the health insurance program directly without the limitation of six-month waiting period (Article 21 of the Amendments). 
 
Also, the Amendments add the target applicable to retirement protection, relax the new employment and retirement system for unemployed persons with permanent residence, and encompass freelance artists and foreign special professionals as specified in Article 10 of the Amendments (Article 22 of the Amendments); and the monthly pension program for teachers is extended to researchers such as those of the Academia Sinica, and is no more limitation to school teachers who hold a permanent resident certificate. Finally, the amended Act extends tax preference, by which the period of tax preference for special professionals will be extended from 3 years to 5 years (Article 20 of the Amendments).
 
III.    Conclusions
 
In light of the foregoing, the three major points of the Amendments include addition of new targets for professional work, increase of residence and friendly dependence regulations, and optimization of social security and tax measures.  All these points demonstrate that Taiwanese government has a positive attitude towards the recruitment of outstanding foreign professionals.  Those who have a plan to work in Taiwan, foreign students studying in Taiwan who are considering working in Taiwan, and business owners who desire to recruit outstanding foreign professionals can make a plan in advance by referring to the above introductions so as to achieve a win-win situation.
 
Although the draft Amendments to the Act are not specifically formulated for the succession of business families, its content just serves a prefect incentive for the second generation of business families who desires to return to Taiwan.
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