TAIWAN
N/A
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Taiwan has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
TAIWAN
Since January 1996, last amended in January 2020
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Effective protection covering trade secrets
Trade Secrets Act
Trade Secrets Act provides a framework for effective protection of trade secrets. According to Art. 1 of the law, trade secrets are referred to as any method, technology, process, formula, program, design, or other information that may be applied in the course of production, sales, or business operations. The information shall be protected if and only if it is commercially valuable because of its secrecy and reasonable confidentiality measures have been taken to keep it secret. In addition, according to Art. 15, the protection of trade secrets of foreign nationals is based on the principle of reciprocity. In principle, if a foreign national's home country does not deny protection to the trade secrets of Taiwan nationals, and the foreign national's trade secrets meet the requirements of Taiwan's Trade Secret Act, the foreign national will enjoy the protection of such trade secrets under Taiwan's Trade Secret Act.
Coverage Horizontal
TAIWAN
N/A
Pillar Telecom infrastructure & competition |
Sub-pillar Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
There is no obligation for passive infrastructure sharing in Taiwan to deliver telecom services to end users, and it is not practised both in the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector
TAIWAN
Since June 2019, last amended in June 2023
Since October 1958, last amended in December 2013
Since October 1958, last amended in December 2013
Pillar Telecom infrastructure & competition |
Sub-pillar Maximum foreign equity share for investment in the telecommunication sector
Telecommunications Management Act (電信管理法)
Telecommunications Act (電信法)
Telecommunications Act (電信法)
According to Art. 36 of the Telecommunications Management Act (2020), foreign ownership in facility-based telecommunication companies (Type I telecommunications enterprises) is limited to 49% of the shares. Additionally, foreigners may not hold more than 60% of such shares when considering both direct and indirect shareholding, such as through the establishment of a Taiwanese company. This restriction specifically applies to Type I telecom enterprises, which, as defined in Art. 11 of the Telecommunications Act, are companies that install telecommunications line facilities and equipment to provide services. In contrast, Type II telecommunications enterprises encompass all other telecom providers.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20240805204224/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060111
- https://web.archive.org/web/20231003071428/https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/taiwan
- https://web.archive.org/web/20230930141135/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060001
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TAIWAN
N/A
Pillar Telecom infrastructure & competition |
Sub-pillar Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
Chungwa Telecom, the largest network operator, used to be a state-owned enterprise but has been privatised in 2005. The government owns 35.29% of its shares. Taiwan Mobile is owned by private shareholders. For Far Eastone Telecommunications Co., Ltd, the government owns 3.24% of its shares. For Asia Pacific Telecom Co., Ltd., the government owns 6.86% of its shares.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20230308042755/https://www.cht.com.tw/en/home/cht/investors/shareholder-services/faq
- https://web.archive.org/web/20231221211958/https://english.taiwanmobile.com/investor/majorInstitutionalShareholders.html
- https://web.archive.org/web/20240120045240/https://www.aptg.com.tw/ir/investors/shareholding/
- https://www.marketscreener.com/quote/stock/FAR-EASTONE-TELECOMMUNICA-6494352/company/
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TAIWAN
N/A
Pillar Telecom infrastructure & competition |
Sub-pillar Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
Taiwan does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is mandated.
Coverage Telecommunications sector
TAIWAN
Since June 2019, last amended in June 2023
Since October 1958, last amended in December 2013
Since October 1958, last amended in December 2013
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Telecommunications Management Act (電信管理法)
Telecommunications Act (電信法)
Telecommunications Act (電信法)
According to Art. 36 of the Telecommunications Management Act (2020), a foreigner may not own more than 49% of the shares of a facility-based telecommunication company. Furthermore, a foreigner may not own more than 60% of such shares in the sum of direct and indirect shareholding (e.g., by setting up a Taiwanese company). This only applies to Type I telecom enterprises. According to Art. 11 of the Telecommunications Act, telecommunications enterprises are classified into Type I telecommunications enterprises, which install telecommunications line facilities and equipment in order to provide telecommunications services, and Type II telecommunications enterprises, which include all other telecom providers.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20221002194123/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060111
- https://web.archive.org/web/20231003071428/https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/taiwan
- https://web.archive.org/web/20230930141135/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060001
- https://web.archive.org/web/20240413044510/https://www.wto.org/english/tratop_e/tpr_e/s448_e.pdf
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TAIWAN
Since February 1999, last amended in May 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Satellite Broadcasting Act (衛星廣播電視法)
Art. 4 of the Satellite Broadcasting Act states that foreigners may not own more than 50% of the total shares issued by providers of satellite broadcasting services. Key definitions relevant to this provision are outlined in Art. 2 as follows:
- Satellite broadcasting: refers to the transmission of sound or visual signals, via satellite, for audio and visual reception by the public;
- Satellite broadcasting business: refers to a direct satellite broadcasting service operator or a satellite broadcasting program supplier;
- Direct satellite broadcasting service operator: refers to a business which uses its own or others' facilities to provide satellite broadcasting services and directly charge subscribers for the service;
- Satellite broadcasting program supplier: refers to a legal entity which transmits programs or advertisements, via satellite, to public audio and visual broadcasting platform with its own transponders or channels or those rented from satellite transponder operators.
- Satellite broadcasting: refers to the transmission of sound or visual signals, via satellite, for audio and visual reception by the public;
- Satellite broadcasting business: refers to a direct satellite broadcasting service operator or a satellite broadcasting program supplier;
- Direct satellite broadcasting service operator: refers to a business which uses its own or others' facilities to provide satellite broadcasting services and directly charge subscribers for the service;
- Satellite broadcasting program supplier: refers to a legal entity which transmits programs or advertisements, via satellite, to public audio and visual broadcasting platform with its own transponders or channels or those rented from satellite transponder operators.
Coverage Satellite broadcasting
TAIWAN
Since July 1954, last amended in November 1997
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Statute for Investment by Foreign Nationals
Under the Statute for Investment by Foreign Nationals, all foreign investments must receive approval from the Investment Commission (IC) of the Ministry of Economic Affairs (Art. 8). Foreign investment, as defined by the Statute, includes: (a) holding shares issued by a Taiwanese company or contributing to its capital assets, (b) establishing a branch office in Taiwan, or (c) providing a loan to the invested enterprise in cases of (a) or (b) for more than one year (Art. 4).
According to Art. 7 of the Statute, foreign investment is prohibited in industries that may threaten national security, public order, good customs and practices, or public health, as well as in sectors listed on the negative list. Prohibited industries include radio broadcasting and the radio-television sector.
In contrast, foreign investment in restricted industries must be approved by the IC under Art. 8 of the Statute. Restricted sectors include satellite television broadcasting. It has been reported that "regulatory and legislative scrutiny of select investments, on grounds unrelated to national security, contributes to ongoing concerns about the predictability of Taiwan's investment approval procedures.
According to Art. 7 of the Statute, foreign investment is prohibited in industries that may threaten national security, public order, good customs and practices, or public health, as well as in sectors listed on the negative list. Prohibited industries include radio broadcasting and the radio-television sector.
In contrast, foreign investment in restricted industries must be approved by the IC under Art. 8 of the Statute. Restricted sectors include satellite television broadcasting. It has been reported that "regulatory and legislative scrutiny of select investments, on grounds unrelated to national security, contributes to ongoing concerns about the predictability of Taiwan's investment approval procedures.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230325212002/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=J0040002
- https://web.archive.org/web/20231211051010/https://www.moeaic.gov.tw/businessPub.view?lang=en&op_id_one=1
- https://uk.practicallaw.thomsonreuters.com/2-500-5464?transitionType=Default&contextData=(sc.Default)&firstPage=true
- https://web.archive.org/web/20231108030000/https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf
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TAIWAN
Since July 1954, last amended in November 1997
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Statute for Investment by Overseas Chinese
Under the Statute for Investment by Overseas Chinese, all investments by overseas Chinese companies must be approved by the Investment Commission (IC) of the Ministry of Economic Affairs (Art. 8). The Statute defines investment as (a) holding shares issued by a Taiwanese company or contributing to its capital assets, (b) establishing a branch office in Taiwan, or (c) providing a loan to the invested enterprise in cases of (a) or (b) for a period exceeding one year (Art. 4).
Investment is prohibited in industries that (a) may threaten national security, public order, good customs and practices, or public health, or (b) are included on the negative list, as stipulated under Art. 7 of the Statute. Prohibited industries on the negative list include radio broadcasting and the radio-television sector.
In contrast, foreign investment in restricted sectors must receive approval from the IC under Art. 8 of the Statute. Restricted industries include satellite television broadcasting.
Investment is prohibited in industries that (a) may threaten national security, public order, good customs and practices, or public health, or (b) are included on the negative list, as stipulated under Art. 7 of the Statute. Prohibited industries on the negative list include radio broadcasting and the radio-television sector.
In contrast, foreign investment in restricted sectors must receive approval from the IC under Art. 8 of the Statute. Restricted industries include satellite television broadcasting.
Coverage Chinese companies
TAIWAN
Since July 1992, last amended in June 2022
Since December 2020
Since December 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Act Governing Relations between the People of the Taiwan Area and the Mainland Area
Measures Governing Investment Permit to the People of Mainland Area
Measures Governing Investment Permit to the People of Mainland Area
Under Art. 73 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (enacted in 1992), investment activities in the Taiwan Area by any individual, legal entity, organisation, or institution from Mainland China, or by any company it invests in within a third area, are prohibited unless expressly permitted by the competent authorities.
According to Art. 3 of the Measures Governing Investment Permit to the People of Mainland Area (Measures), companies invested in a third area refer to those where individuals, legal entities, organisations, or institutions from Mainland China either (a) directly or indirectly hold more than 30% of the shares or the total contributing amount, or (b) exercise controlling power over the companies in a third area. Investment from Mainland China in this manner requires approval from the Ministry of Economic Affairs under Art. 8 of the Measures. Additionally, investment is prohibited under Art. 8 if it results in (a) economic exclusivity, oligopoly, or monopoly, (b) political, social, or cultural sensitivity, or a threat to national security, or (c) a negative impact on national economic development or financial stability.
According to Art. 3 of the Measures Governing Investment Permit to the People of Mainland Area (Measures), companies invested in a third area refer to those where individuals, legal entities, organisations, or institutions from Mainland China either (a) directly or indirectly hold more than 30% of the shares or the total contributing amount, or (b) exercise controlling power over the companies in a third area. Investment from Mainland China in this manner requires approval from the Ministry of Economic Affairs under Art. 8 of the Measures. Additionally, investment is prohibited under Art. 8 if it results in (a) economic exclusivity, oligopoly, or monopoly, (b) political, social, or cultural sensitivity, or a threat to national security, or (c) a negative impact on national economic development or financial stability.
Coverage Chinese companies
Sources
- https://www.mac.gov.tw/en/News_Content.aspx?n=4F2E0C155DF44564&sms=2C46F5E37DC2E1D2&s=1403D3EA1BC2B0B9#Chapter%20I%20General%20Provisions
- https://web.archive.org/web/20180114131422/https://www.bycpa.com/html/news/20106/1476.html
- https://uk.practicallaw.thomsonreuters.com/2-500-5464?transitionType=Default&contextData=(sc.Default)&firstPage=true
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TAIWAN
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.39%
Coverage rate of zero-tariffs on ICT goods (%)
54.79%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
TAIWAN
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Taiwan is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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TAIWAN
Since May 1998, last amended in May 2019
Since May 1999, last amended in August 2012
Since May 1999, last amended in August 2012
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Government Procurement Act
Regulations Governing the Participation of Foreign Suppliers in the Procurement not Subject to any Treaties or Agreement
Regulations Governing the Participation of Foreign Suppliers in the Procurement not Subject to any Treaties or Agreement
Foreign suppliers from countries that are parties to relevant treaties or agreements (e.g., WTO Agreement on Government Procurement) are accorded national treatment and non-discrimination from procuring entities. However, under Art. 17 of the Government Procurement Act (enacted in 1998), procuring entities in Taiwan may ban or restrict the participation of:
- foreign suppliers from countries that are not parties to such agreements; or
- foreign suppliers in procurement activities to which Taiwan is not under any obligation to accord national treatment or non-discrimination.
Furthermore, per Art. 6 of the "Regulations Governing the Participation of Foreign Suppliers in the Procurement not Subject to any Treaties or Agreement," such suppliers are not accorded the equal opportunity to be invited to tender procedures, the equal qualification requirements applicable to domestic suppliers, and the nondiscrimination requirements.
- foreign suppliers from countries that are not parties to such agreements; or
- foreign suppliers in procurement activities to which Taiwan is not under any obligation to accord national treatment or non-discrimination.
Furthermore, per Art. 6 of the "Regulations Governing the Participation of Foreign Suppliers in the Procurement not Subject to any Treaties or Agreement," such suppliers are not accorded the equal opportunity to be invited to tender procedures, the equal qualification requirements applicable to domestic suppliers, and the nondiscrimination requirements.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230321003749/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=A0030057
- https://web.archive.org/web/20201027000320/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=A0030072
- https://web.archive.org/web/20240613023424/https://www.lexology.com/library/detail.aspx?g=79d50c7b-5874-49b9-821d-3bf1431494f7
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TAIWAN
Since May 1998, last amended in May 2019
Since May 1999, last amended in July 2021
Since May 1999, last amended in July 2021
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Government Procurement Act
Enforcement Rules for the Government Procurement Act
Enforcement Rules for the Government Procurement Act
Under Art. 43.1 of the Government Procurement Act, except otherwise prohibited by treaties or agreements, a procuring entity in Taiwan may consider whether or not a supplier is willing to transfer its technology when evaluating a bid, provided that such a measure does not make up more than one-third of the evaluation. This is further specified in Art. 45 of the Enforcement Rules for the Government Procurement Act.
Coverage Horizontal