Taiwan: Updated list of “low-risk” financial accounts

The list of “low-risk” financial accounts was updated

The list of “low-risk” financial accounts was updated

The Ministry of Finance announced that financial institutions originally listed as “entities that present a low risk of being used to evade tax” fall within the amended definition of “governmental entity”—under the common reporting standard (CRS) regime—resulting in the revocation of the list with effect from 24 December 2021.

The definition of “governmental entity” was amended (in May 2021) to include “other entity that is directly or indirectly wholly held or controlled by the government at various levels” as per Article 11 of Taiwan’s CRS regulations.

The Ministry had earlier classified certain labor retirement as low-risk tax avoidance accounts. However, after revision of the definition of governmental entity, these accounts were reviewed and found to fall within the amended definition bracket, resulting in an exemption from the due diligence and reporting obligations set forth in the CRS regulations.

Read a January 2022 report [PDF 306 KB] prepared by the KPMG member firm in Taiwan

 

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