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LATEST LEGAL NEWS | ||||
Ministry of Economic Affairs Proposes Draft Amendments to the Statute for Industrial Innovation to Facilitate Smart Upgrade, the Net-Zero Transition, and Expanded Startup Fundraising | |
The investment tax credit provision under Article 10-1 of the Statute for Industrial Innovation is scheduled to expire on December 31, 2024. To support industries as they adapt to the trends of AI and global net-zero emissions, promote investment in startups, and enhance foreign investments while also safeguarding critical technologies, the Ministry of Economic Affairs proposed draft amendments on October 5, 2024 for public feedback. Key highlights of the draft amendments are as follows: 1.Article 10-1 (1)To encourage industrial smart upgrading and align with 5G applications and information security protection needs, the existing categories (smart machines, 5th-generation mobile networks, and cyber security products or services) will be maintained, while advancing toward high-end smart manufacturing. (2)In response to the rapid advancement of AI, and to enhance industrial competitiveness while aligning with global carbon reduction trends and Taiwan's 2050 net-zero emission targets, new categories for AI and energy conservation and carbon reduction projects will be added, offering tax incentives to stimulate active industry investment in these sectors. (3)To accommodate the expanded scope of eligible investments, the maximum allowable investment threshold will be increased from the current NT$1 billion to NT$1.8 billion. This adjustment aims to stimulate greater industrial investment in AI and energy conservation and carbon reduction equipment, expediting both digital transformation and net-zero transition. (4)The implementation period will be extended to December 31, 2029, aligning with other tax incentive provisions of the Statute for Industrial Innovation. 2.Article 22: Currently, companies engaging in foreign investments exceeding NT$1.5 billion must apply for approval in advance. This will be revised, only companies making investments in specific countries, regions, industries, and technologies, or exceeding a specific amount, will be required to apply for approval from the authority. The authority may fully or partially deny approval, and may grant approval with conditions. 3.Article 23-1: To encourage limited partnership venture investment in startups, the minimum aggregate capital contributions threshold for limited partnership venture capital firms will be reduced from the current NT$300 million to NT$150 million, along with an increase in the mandatory investment ratio for startup enterprises. 4.Article 23-2: The existing tax incentives for individual investors in high-risk startups will be expanded. The current provisions allow tax incentives for individuals investing in high-risk startup companies established within two years; new provisions will allow individuals investing in high-risk startup companies that have been established for more than two years but less than five years to qualify for these tax incentives, thereby assisting startups in securing capital needed for their operational development. 5.Article 67-3: New penalties will be introduced for the following situations: Failure to obtain required prior approval; violation of conditions set by the authority; grounds for disapproving investment arising after an investment is already underway; and when the company fails to comply, make corrections, or withdraw an investment within a specified period as ordered. |
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[1] Ministry of Economic Affairs, Notice is hereby given, to commence a period of public comments for draft amendments of the Statute for Industrial Innovation, JOIN.GOV.TW, available at: https://join.gov.tw/policies/detail/5f4cc321-6265-4ef9-8cb4-e29e80dc3e8c (last visited Nov. 6, 2024).
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Taiwan’s Legislative Yuan Passes Amendments to the Electronic Signatures Act | |
On April 30, 2024, Taiwan Legislative Yuan passed significant amendments to Taiwan's Electronic Signatures Act, marking the first revision in over 20 years since the law's implementation in April 2002. This legislative milestone aims to bolster the use of electronic signatures by ensuring that electronic documents and signatures are legally equivalent to their physical counterparts. The amendments reflect Taiwan's commitment to adapting its legal framework to the rapid advancements in the digital economy. Key Amendments The amendments to the Electronic Signatures Act introduce several critical changes to enhance the legal standing and application of electronic signatures: 1.Legal Equivalence of Electronic Documents and Signatures The revised law stipulates that electronic documents and signatures that comply with specified regulations have the same legal effect as physical documents and signatures. This provision ensures that the electronic format cannot be denied legal validity solely because of its digital nature. 2.Clarification of Digital Signatures Digital signatures are explicitly defined as a subset of electronic signatures. Digital signatures, issued by government-approved certificate authorities, are presumed to be as legally binding as handwritten signatures or seals due to their enhanced security features, including encryption and identity verification. 3.Government Use and Exemptions To foster smart governance, the amendments require government agencies to adopt electronic signatures unless explicitly excluded by law. A transitional period is provided for government agencies to adjust, with exemptions ceasing one year after the amendment's implementation, unless an extension of up to two years is granted. 4.International Cooperation and Research Authorities are tasked with periodically collecting data on the application of electronic signatures and conducting international regulatory and market research. The findings are to be published annually, promoting transparency and facilitating global interoperability. 5.Rights of Refusal In alignment with digital inclusion principles, the amendments uphold the right of individuals and entities to refuse the use of electronic signatures, thereby maintaining the option for traditional physical signatures and documents. Implications for Digital Transformation The passage of these amendments is a pivotal step toward a more digitally integrated Taiwan. By solidifying the legal framework for electronic signatures, Taiwan is poised to significantly enhance efficiency, security, and environmental sustainability. The ability to execute legally binding documents electronically can streamline processes in various sectors, from government services to commercial transactions, reducing reliance on paper and expediting operations. Moreover, these amendments are expected to drive innovation and investment in Taiwan's digital infrastructure. The enhanced legal certainty provided by these changes can attract international businesses looking for a robust legal environment for their digital transactions. In conclusion, the amendments to Taiwan's Electronic Signatures Act represent a significant advancement in the country's digital transformation journey. As the world continues to shift towards digital solutions, Taiwan's proactive legislative adjustments demonstrate its readiness to lead in the digital economy, ensuring that its legal frameworks evolve in tandem with technological advancements. |
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[1] Electronic Signatures Act, Laws & Regulations Database of The Republic of China (Taiwan), https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=J0080037 (last visited July 10, 2024).
[2] EXECUTIVE YUAN, Executive Yuan Press Releases, https://www.ey.gov.tw/Page/9277F759E41CCD91/7e0472e2-c917-4b41-b00b-e30a5927d7ae (last visited July 10, 2024).
[3] EXECUTIVE YUAN, Meeting No. 3894, https://www.ey.gov.tw/File/B62F5DD36323A2A8?A=C (last visited July 10, 2024).
[4] Passed Important Acts, Legislative Yuan, https://www.ly.gov.tw/Pages/Detail.aspx?nodeid=33324&pid=240913 (last visited July 10, 2024).
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Ministry of Economic Affairs Notice is hereby given, to commence a period of public comments for the draft amendment of "Regulations for the Security and the Maintenance of Personal Data Files in Retail Sale in Non-specialized Stores" | |
On August 13, 2024, the Ministry of Economic Affairs (MOEA) announced the draft of the “Regulations for the Security and the Maintenance of Personal Data Files in Retail Sale in Non-specialized Stores,” hereinafter referred to as the Regulations. I.Preface According to paragraph 2 and paragraph 3 of Article 27 of the Personal Data Protection Act, the central government authorities in charge of the industries concerned may designate and order certain non-government agencies to establish a security and maintenance plan for the protection of personal data files and rules on disposing personal data following a business termination. Matters such as standards on setting forth the aforementioned plans and disposal regulations shall be expressly established by the central government authority in charge of the industry concerned. Therefore, the MOEA published the Regulations to order retail sale in non-specialized stores (data controller and processor) to establish a security and maintenance plan for the protection of personal data files on August 1, 2023. II.Outline of the security and maintenance plan The security and maintenance plan must include the following items: 1.Establishing an internal control procedure for the collection, processing, and use of personal data; 2.Defining the scope of personal data; 3.Managing data security and personnel; 4.Promoting awareness, education and training; 5.Establishing a mechanism of preventing, giving notice of, and responding to a data breach; 6.Managing facility security; 7.Establishing an audit mechanism of data security; 8.Keeping records, log files and relevant evidence; 9.Establishing rules on disposing personal data following a business termination; and 10.Implementing integrated and persistent improvements on the security and maintenance of personal data. III. Added requirement of security and maintenance measures In order to expand the scope of the Regulations and strengthen security and maintenance measures, the MOEA proposed a draft amendment to the Regulations and renamed it as the "Regulations for the Security and Maintenance of Personal Data Files in Retail Sale." (Regulations in Retail Sale) According to Article 9 and Article 10 of the Regulations in Retail Sale, the newly added security and maintenance measures include: 1.Encrypting personal data; 2.Implementing protective measures during the transmission of personal data; 3.Applying protective measures to backed-up personal data; 4.Enforcing a certain level of complexity for user account passwords; 5.Masking personal data; 6.Regularly testing for system vulnerabilities; 7.Updating antivirus software; and installing firewalls, among others. IV. Conclusion The business model of the retail industry is gradually transitioning to digitalization, and online retail has become highly prevalent. As a result, the amount of personal data retained by businesses is increasing, and any data breaches could have serious impacts. Eligible retailers are required to establish a security and maintenance plan within six months of the implementation of the Regulations in Retail Sale and must enforce security measures for the protection of personal data. |
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[1] National Development Council, MINISTRY OF ECONOMIC AFFAIRS Notice is hereby given, to commence a period of public comments for the draft amendment of "Regulations for the Security and the Maintenance of Personal Data Files in Retail Sale in Non-specialized Stores", PLATFORM OF ONLINE PARTICIPATION IN PUBLIC POLICY, https://join.gov.tw/policies/detail/d42b77fd-83da-4909-ba25-73c0754f42a8 (last visited Oct. 1, 2024).
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