Taiwan's Taxation Administration has published an updated list of low-tax jurisdictions from the Ministry of Finance. The list is important in relation to Taiwan's new controlled foreign company (CFC) rules, which are in force from 2023. In general, a foreign company located in a low-tax jurisdiction is considered a CFC of a Taiwan company if the Taiwan company, together with related parties, directly or indirectly holds more than 50% of the foreign company's shares/capital or otherwise has significant influence (substantial management, control) of the foreign company. For this purpose, low-tax jurisdictions include jurisdictions where:

• The corporate or similar tax rate does not exceed 70% of the Taiwan rate; or
• The jurisdiction only taxes on a territorial basis or only taxes overseas source income when remitted;

29 jurisdictions are listed for not having a tax rate exceeding 70% of the Taiwan rate, including:

Andorra, Anguilla, Bahamas, Bahrain, Barbados, Bermuda, BES Islands, Bosnia and Herzegovina, British Virgin Islands, Bulgaria, Cayman Islands, Cyprus, Guernsey, Hungary, Isle of Man, Jersey, Kosovo, Kyrgyzstan, Liechtenstein, Macao, Marshall Islands, Moldova, North Macedonia, Palau, Paraguay, Qatar, Timor-Leste, Turks and Caicos Islands, and Vanuatu.

50 jurisdictions are listed for only taxing on a territorial basis or only taxing overseas source income when remitted, including:

Belize, Bolivia, Botswana, Brunei, Chad, Costa Rica, Curacao, Democratic Republic of the Congo, Djibouti, El Salvador, Eritrea, Eswatini, France, French Guiana, French Polynesia, French Southern Territories, Georgia, Gibraltar, Guadeloupe, Guatemala, Guinea-Bissau, Honduras, Hong Kong, Kenya, Kuwait, Libya, Malawi, Malaysia, Martinique, Mayotte, Micronesia, Monaco, Namibia, Nauru, New Caledonia, Nicaragua, Niger, Palestine, Panama, Reunion, Saint Barthelemy, Saint Martin (French Part), Saint Pierre and Miquelon, Seychelles, Singapore, Syria, Tuvalu, United Arab Emirates, Uruguay, and Wallis and Futuna.

It is further noted that foreign companies in Ireland, Mauritius, Samoa, and other jurisdictions with special rates for certain regions/industries will be evaluated individually based on the facts of each case. Lastly, it is noted that the lists are for reference only and that the determination of a foreign company as a CFC will be based on the actual situation.