In its Plenary Sitting, Taiwan's Legislative Yuan approved the Executive Yuan's proposed amendment to Article 22-16 of the Offshore Banking Act.
The Financial Supervisory Commission (FSC) stated that the anticipated benefits of the amendment are aligned with the national policy of promoting Taiwan as an Asian asset management centre. It aims to expand the international reach of Taiwan’s insurance industry and enhance the competitiveness of insurance products sold through offshore insurance businesses.
The amendment also extends the exemption period for business income tax, business tax, stamp tax, and income tax withholding for offshore insurance branches (OIUs) until the end of 2035. The extension is expected to provide continued incentives for insurers to develop new products, supporting the diversification of OIU insurance offerings and increasing consumer demand.
In addition, by fostering synergy with offshore banking branches and offshore securities branches, the amendment will support the expansion of Taiwan’s asset management services and for the insurance industry to expand its global reach.
The FSC has expressed its appreciation to the Legislative Yuan and all stakeholders for their continued support and valuable input throughout the legislative process.