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Article 6
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An overseas Chinese or foreign national investing in securities shall file and pay taxes under the provisions of the Income Tax Act and other applicable laws. With the exception of a foreign institutional investor with a fixed place of business or business agent within the territory of the ROC, the overseas Chinese or foreign national investing in securities shall appoint an agent within the territory of the ROC to file and pay taxes on the investor's behalf. Documents evidencing such appointment shall be completed and submitted to the competent tax authority for approval. In case of a change of agent, the successor agent shall prepare another set of such documents evidencing its appointment to file and pay taxes on behalf of the client, and shall submit such documents to the competent tax authority for approval.
When an overseas Chinese or foreign national applies for exchange settlement of earnings from securities investments, the investor's agent or representative appointed pursuant to Article 16 shall carry out exchange settlement in accordance with the provisions of the applicable foreign exchange-related laws and regulations, by submitting either the documents set forth under the preceding paragraph evidencing the filing of a tax return and payment of taxes by an agent/representative approved by the tax authorities, or a tax payment certificate issued by the competent tax authority; provided, however, that an overseas Chinese or foreign national that satisfies the following provisions and for whom an agent or representative appointed pursuant to Article 16 has submitted evidentiary documents, may proceed forthwith to carry out exchange settlement in accordance with the provisions of the applicable foreign exchange-related laws and regulations:
- Has not acquired income from transfer of registered shares as set forth in Article 16 or 17 of the Act for Upgrading Industries prior to the 31 December 1999 amendment and promulgation , Article 13 of the former Statute for Encouragement of Investment, or Article 7 of the Biopharmaceutical Industry Development Act.
- Has no income from securities transactions that is subject to taxation under the Income Tax Act and the Income Basic Tax Act.
- Has duly paid the taxes on income from any other transactions.
The format of the documents evidencing the appointment of the agent or representative for tax return filing and tax payment under paragraph 1 shall be prescribed by the Ministry of Finance.
Where the evidentiary documents submitted by an agent or representative appointed in accordance with the provisions of paragraph 2 contain false information, the matter shall be handled in accordance with the applicable provisions of the Income Tax Act and the Tax Collection Act.
The fixed place of business or business agent referred to in paragraph 1 shall be determined under the provisions of the Income Tax Act.
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