An individual or a profit-seeking enterprise may, within the limit of 25% of the funds after the deduction of the tax under Paragraph 3 of Article 6 hereof, file an application with the account-handling bank (by submitting thereto the trust contract with the account-handling bank or a securities dealer, or a discretionary investment services contract and a custodian contract with a financial institution approved by the FSC to engage in discretionary investment services), to withdraw funds from the segregated foreign exchange deposit account and then deposit such withdrawn funds into the segregated trust account or the segregated securities discretionary account for financial investment purposes.
One-third of the funds, deposited into the segregated trust account or the segregated securities discretionary account as referred to in the preceding paragraph, may be withdrawn upon the elapse of five full years after the date of being deposited into the segregated foreign exchange deposit account pursuant to Paragraph 1 of Article 6 hereof; another one-third of the funds may be withdrawn upon the elapse of six full years, and the remaining one-third of the funds may be withdrawn upon the elapse of seven full years. If the funds have been used to make financial investments pursuant to the preceding paragraph, but the applicable trust contract or the discretionary investment services contract has been terminated or has expired before the above-referenced milestones for withdrawal are reached, such funds shall be deposited back to the segregated foreign exchange deposit account within one month following the termination or expiration of such contracts via the following means and shall be subject to Article 10 hereof:
1. if such funds are in New Taiwan Dollars or a foreign currency other than its original currency at the time of withdrawal, it shall be converted back into its original currency at the then prevailing foreign exchange rate;
2. if such funds are in its original currency, it shall be deposited back in such currency.
Where the funds deposited into the segregated trust account or the segregated securities discretionary account pursuant to Paragraph 1 are not withdrawn in accordance with the regulations or are used for purposes other than the approved investment, or have been pledged, provided as security, or otherwise decreased in value thereof, or have not been deposited back to the segregated foreign exchange deposit account in accordance with the preceding paragraph, the account-handling bank shall, upon the occurrence of any of the above-referenced events, withhold tax at the applicable tax rate, specified under Paragraph 2 of Article 6 hereof, on the funds pursuant to the rules below based on the pre-tax value of such funds, and pay such tax withheld to the national treasury and complete the filing in accordance with Article 12 hereof; the amount of the tax already paid on such pre-tax value in accordance with Paragraph 2 of Article 6 hereof may be deducted:
1. if the funds concerned are in New Taiwan Dollars, the pre-tax amount thereof shall be subject to a 20% tax rate;
2. if the funds concerned are in a foreign currency, the pre-tax amount thereof shall be subject to a 20% tax rate, and the tax payment shall be converted into New Taiwan Dollars at the prevailing foreign exchange rate on that day.