Taipei, Feb. 8, 2010 (CENS)--Foreigners with investments in Taiwan exceeding a certain level will enjoy residential right or even permanent residential right, free from the requirement of residing on the island for 183 days or more a year, according to the draft "Financial Service Law," just completed by the Financial Supervisory Commission (FSC).

The draft of the law, dubbed as the "financial constitution," authorizes the regulator to set the investment floor for the residential privilege, which may equal the level set by neighboring nations, such as 2 million Singaporean dollars (around NT$46 million) in Singapore. The draft will be submitted to the Executive Yuan (the Cabinet) for approval soon.

As a result, such foreign investors will be able to obtain residential or permanent residential right without having to file tax returns for their incomes in Taiwan, a requirement applicable to those residing 183 days or more a year on the island. The stipulation is designed to encourage investment-based immigration by foreigners.

In addition, local citizens will be able to use their overseas funds for opening accounts, in the name of individuals, at the offshore banking units (OBUs) of domestic financial institution, which now only provide such service to foreign individuals and institutional investors. The stipulation can encourage local people to remit their funds back to Taiwan, since interests from OBU accounts are tax-free.

The draft also calls for the setup a mechanism for solving financial disputes involving less than NT$1.5 million of investment, including the establishment of a special agency for protecting small-scale investors.

(by Philip Liu)