Frequently Asked Questions - Taiwan Foreign Exchange Control

1. Are there any restrictions on the amount of local currency that may be brought into or taken out of Taiwan?

According to the latest announcement issued by the Directorate General of Customs (as of October 2010), passengers may not carry in or out of Taiwan more than NT$60,000. If the amount of New Taiwan dollars carried by a passenger exceeds the said limit, the passenger must apply to the Central Bank of Taiwan for its approval in advance. If the amount exceeding the limit is not approved, such amount must not be brought in to or out of Taiwan.

2. Are there any restrictions on the amount of foreign currency that may be brought into or taken out of Taiwan?

According to the above announcement, there is no limitation on the amount of foreign currency (excluding Chinese yuan) that passengers may bring into or out of Taiwan. However, where the amount of foreign currency exceeds US$10,000 (or its equivalent in other foreign currencies), it must be declared to customs when entering or exiting Taiwan. Failure to declare or making a false declaration may result in the confiscation of the amount in excess of the limit. Passengers may not carry into or out of Taiwan more than 20,000 Chinese yuan. If the amount of Chinese yuan carried by a passenger exceeds the said limit when entering Taiwan, it must be declared to customs and the amount exceeding the limit, which must not be brought into Taiwan, must be deposited with customs to be returned to the passenger when exiting Taiwan. On the other hand, if the amount of Chinese yuan carried by a passenger exceeds the said limit when exiting Taiwan, it must be declared to customs. Failure to declare or making a false declaration may result in the confiscation of the amount in excess of the limit.

3. Are there any restrictions on the inflow or outflow of foreign exchange?

There are currently regulatory measures on foreign exchange transactions exceeding a certain amount. The type of measure depends on the amount of the transaction.

(1) Where the amount of a single transaction reaches the regulated amount

In accordance with Article 2 of the Regulations Governing the Declaration for Foreign Exchange Receipts and Disbursements or Transactions (the “Regulations?, all foreign exchange income, expenditure or transactions exceeding NT$500,000 within the territory of Taiwan must be declared by the owner of the funds or by the person who needs the funds. In particular, in accordance with Article 5 of the Regulations, if a remittance by a company or business entity is more than US$1,000,000, or a remittance by an organization or an individual is more than US$500,000, or if a remittance is for direct investment or investment in securities as approved by the competent authority, or a remittance for transactions is conducted within the territory of Taiwan involving goods or services located outside the territory of Taiwan, documents of proof such as agreements related to the income, expenditure or transaction or approval letters must be submitted. Upon the bank’s verification that the amount is the same as that specified in the application, the said amount can then be settled in the currency of New Taiwan Dollars.

(2) Where the aggregate amount of the transaction reaches the regulated amount

In accordance with Article 6 of the Regulations, the bank must apply to the Central Bank of Taiwan for its approval prior to making a remittance in cases where the annual aggregate amount of necessary foreign exchange purchased or sold by a company or business entity exceeds US$50,000,000, or where the annual aggregate amount of necessary foreign exchange by an organization or an individual exceeds S$5,000,000. Moreover, the bank must also apply to the Central Bank of Taiwan for its approval before making a remittance in respect to the remittance of payments exceeding US$100,000 for the payment for construction projects within the territory of Taiwan, performance bond and arbitration costs to be deposited for legal proceedings, relevant payments obtained from self-use immovable property pursuant to laws, and payments obtained in accordance with laws such as inheritance, insurance payments and condolence payments by non-Taiwanese residents.