The Ministry of Finance may, based on the principle of reciprocity, enter into a treaty or an agreement of information exchange for tax purposes and provision of other mutual tax assistance with a foreign government or an international organization and put it into force after having obtained the approval of the Executive Yuan and completing the formality of exchange of diplomatic instruments with the foreign government or international organization.
The exchange of information for tax purposes and the provision of other tax assistance with a foreign government or an international organization shall be conducted reciprocally in accordance with the provisions of the treaty or agreement entered into force. Any such matter not provided for in the treaty or agreement shall be governed by the provisions of this Act and relevant laws and regulations. However, the exchange of information with the other contracting party shall not be conducted if it falls under any of the following circumstances:
1.The other contracting party fails to equally provide the same kind of information to the Republic of China;
2.It is obviously difficult for the other contracting party to keep the information received confidential;
3.The information requested by the other contracting party is not for tax purposes;
4.Providing the information requested by the other contracting party would be detrimental to the public interest of the Republic of China; or
5.The other contracting party raises a request on exchange of information without exhausting means available under its investigation procedures.
The Ministry of Finance or its authorized agencies while executing their power to gather information necessary for the exchange of information under the said treaty or agreement in paragraph 1 shall accord the following provisions; notwithstanding the confidentiality provisions of this Act or other laws, the person required to cooperate in providing the information cannot avoid, hinder, or refuse:
1.Information for which extra measures are required to obtain: The Ministry of Finance or its authorized agencies may conduct a necessary investigation into the relevant agency, institution, organization, enterprise, or individual, or request the presence of the subject of the investigation at the Ministry of Finance or the authorized office for enquiry and to provide relevant information.
2.Information which shall be provided to the other contracting party automatically or spontaneously: The relevant agency, institution, organization, enterprise, or individual shall cooperate to provide relevant property, income, business, tax payment, financial account, or other information for tax purposes; in addition, information subject to financial account due diligence rules or other type(s) of review shall only be provided after relevant procedures have been carried out.
The Ministry of Finance or its authorized agencies which provide information to the competent authority of the other contracting party according to the said treaty or agreement in paragraph 1 shall be exempted from confidentiality provisions of this Act and other laws. The confidentiality provisions of other laws described in the preceding two paragraphs refers to the confidentiality provisions set forth in the following financial and tax laws:
1.The confidentiality provisions set forth in the Banking Act, Financial Holding Company Act, Offshore Banking Act, Act Governing Bills Finance Business, Trust Enterprise Act, Credit Cooperatives Act, Act Governing Issuance of Electronic Stored Value Cards, Act Governing Electronic Payment Institutions, Financial Asset Securitization Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Insurance Act, Postal Remittances and Savings Act, Agricultural Finance Act, Central Bank Act, Income Tax Act, and Customs Act.
2.Other laws announced by the Ministry of Finance after consulting with other central competent authorities.
The Ministry of Finance, consulting with the Financial Supervisory Commission and other related agencies is authorized to draw up and promulgate rules and regulations on the scope, the measures of implementation, the presentation of a request, and the information collection of the said treaty or agreement in paragraph 1; the content of information, the time limit and measures for providing information, the standard for due diligence and other reviewing processes described in subparagraph 3(2); the measures governing procedures for providing information to the other contracting party described in paragraph 4 and other related issues.
When applying an agreement for the avoidance of double taxation with respect to taxes on income, which was signed prior to the entry into force of the 26 May 2017 amendment of this Act, and which includes clauses of exchange of information for tax purposes and other tax assistance, paragraphs 2 through 4, and the rules and regulations drawn up as described in the previous paragraph after the amendments of this Act came into force, shall apply.