How does Taiwan enforce reciprocity and citizenship right on the direct investment by foreign nationals? Please specify how Taiwan protects the existing local enterprises. (TWBUINESS site)
According to the Statute for Investment by Foreign Nationals:
(1) Unless otherwise provided by laws, the rights and obligations of any
enterprise invested by the foreign investor shall be as same as those of the enterprise operated by a R.O.C. national.
(2) If the capital invested by the investor in the invested enterprise is less than 45% of the enterprise’s paid-in capital and the government intends to expropriate or acquire the enterprise due to national security consideration, the government shall reasonably compensate the investor of the said enterprise.
This government compensation can be converted in foreign currency and repatriated to the foreign investor offshore.
(3) If the capital invested by the investor in the invested enterprise is more than 45% of the paid-in capital and such investment capital remains to be more than 45% for 20 years since the enterprise started its operation, the invested enterprise shall not be expropriated or acquired.
(4) The foreign investor may apply for foreign exchange settlement of exchange against the interest accrued on his/her annual income, or against the dividend distributed to him/her from his/her investment.
