Regulations Governing Application of Calculating Income from Controlled Foreign Company for Individual Article 2
For any individual and their related parties directly or indirectly holding 50% or more of the shares or capital of a foreign affiliated enterprise in a low-tax country or jurisdiction (hereinafter referred to as a "low-tax jurisdiction"), or having a significant influence on such a foreign affiliated enterprise, the said foreign affiliated enterprise is a controlled foreign company.If a controlled foreign company mentioned in the preceding paragraph is not subject to Article 43-4 of the Income Tax Act and does not meet the criteria of Paragraph 1 of Article 5 of these Regulations, and an individual, either alone or together with their spouse and relatives within the second degree of kinship, directly holds 10% or more of the shares or capital of such a controlled foreign company on December 31 of the current year, the individual shall calculate their income from profit-seeking activities in accordance with Article 12-1 of the Income Basic Tax Act under these Regulations.For an individual and their related parties directly or indirectly, through related parties, holding a combined total of 50% or more of the shares or capital of an affiliated enterprise in a low-tax jurisdiction as mentioned in the first paragraph, the holding ratio on December 31 of the current year shall be determined by aggregating the holding ratios calculated based on the following methods:1. Where the individual directly holds the shares or capital of the said affiliated enterprise in a low-tax jurisdiction, the individual’s holding ratio shall be aggregated into the said calculation.2. Where, through a domestic or foreign affiliated enterprise, the individual indirectly holds the shares or capital of an affiliated enterprise in a low-tax jurisdiction, and the individual’s holding ratio of the shares or capital of such domestic or foreign affiliated enterprise is over 50%, or the individual has control over such domestic or foreign affiliated enterprise, the holding ratios of the shares or capital of the said affiliated enterprise in the low-tax jurisdiction, directly and indirectly held by such domestic or foreign affiliated enterprise, shall be aggregated into the said calculation; if the individual holds no more than 50% of the shares or capital of such domestic or foreign affiliated enterprise, the holding ratio of each layer of such domestic and foreign affiliated enterprise shall be multiplied and then aggregated into the said calculation.3. For a related party or a nominal party who meets the following criteria, its direct and indirect holding ratios of the shares or capital of the said affiliated enterprise in a low-tax jurisdiction shall be aggregated into the said calculation in accordance with the methods prescribed in the preceding two subparagraphs:(1) An affiliated enterprise as defined in Subparagraphs 3 to 5 of Paragraph 2 of Article 3.(2) A related party as defined in Subparagraphs 1 to 10 of Paragraph 3 of Article 3.(3) The said individual that inappropriately circumvents the constituent elements prescribed in the preceding two items by the share transfer or other arrangements under another's name.4. For the individual and their related parties, while calculating the direct or indirect holding ratio of the shares or capital of an affiliated enterprise in a low-tax jurisdiction in accordance with the preceding three subparagraphs, the higher figure shall be used in case of any duplicate calculations.Where the individual and their related parties have inappropriately circumvented the constituent elements specified in the preceding two paragraphs by the share transfer or other arrangements before or on December 31 of the current year, the tax authority may determine the holding ratios of the shares or capital of the foreign affiliated enterprise in a low-tax jurisdiction in accordance with the highest aggregated holding ratio on any given day of the current year, to be calculated according to the methods provided in the preceding two paragraphs.The term "significant influence" mentioned in the first paragraph shall refer to the individual and their related parties have control over the personnel, finance, or business operations of the foreign affiliated enterprise in a low-tax jurisdiction.
中文原文 個人計算受控外國企業所得適用辦法第2條
個人及其關係人直接或間接持有在中華民國境外低稅負國家或地區（以下簡稱低稅負區）關係企業之股份或資本額合計達百分之五十或對該低稅負區關係企業具有重大影響力者，該低稅負區關係企業為受控外國企業。
前項受控外國企業無所得稅法第四十三條之四規定之適用及不符合第五條第一項規定者，於個人或其與配偶及二親等以內親屬當年度十二月三十一日合計直接持有該受控外國企業股份或資本額達百分之十之情形，該個人應依本辦法規定計算本條例第十二條之一所定營利所得。
第一項所定個人及其關係人直接或透過關係人間接持有低稅負區關係企業之股份或資本額合計達百分之五十，以該個人當年度十二月三十一日依下列方式合併計算之股份或資本額比率認定：
一、個人直接持有低稅負區關係企業股份或資本額者，依其持有比率合併計算。
二、個人透過境內外關係企業而間接持有低稅負區關係企業，且其直接及間接持有境內外關係企業股份或資本額超過百分之五十或對境內外關係企業具有控制能力者，以該關係企業直接及間接持有低稅負區關係企業之股份或資本額比率合併計算；未超過百分之五十者，按境內外關係企業各層持有比率相乘積合併計算。
三、符合下列各目規定之關係人及被利用名義之人，應比照前二款計算方式，將其直接及間接持有低稅負區關係企業之股份或資本額比率合併計算：
（一）第三條第二項第三款至第五款規定之關係企業。
（二）第三條第三項第一款至第十款規定之關係人。
（三）個人利用他人名義進行股權移轉或其他安排，不當規避前二目構成要件者。
四、依前三款規定計算個人及其關係人直接或間接持有低稅負區關係企業之股份或資本額比率，如有重複計算情形，以較高者計入。
個人及其關係人，於當年度十二月三十一日以前有藉股權移轉或其他安排，不當規避前二項構成要件者，稽徵機關得以當年度任一日依前二項方式合併計算之持有低稅負區關係企業股份或資本額最高比率認定之。
第一項所稱具有重大影響力，指個人及其關係人對低稅負區關係企業之人事、財務或業務經營具有控制能力。
前項受控外國企業無所得稅法第四十三條之四規定之適用及不符合第五條第一項規定者，於個人或其與配偶及二親等以內親屬當年度十二月三十一日合計直接持有該受控外國企業股份或資本額達百分之十之情形，該個人應依本辦法規定計算本條例第十二條之一所定營利所得。
第一項所定個人及其關係人直接或透過關係人間接持有低稅負區關係企業之股份或資本額合計達百分之五十，以該個人當年度十二月三十一日依下列方式合併計算之股份或資本額比率認定：
一、個人直接持有低稅負區關係企業股份或資本額者，依其持有比率合併計算。
二、個人透過境內外關係企業而間接持有低稅負區關係企業，且其直接及間接持有境內外關係企業股份或資本額超過百分之五十或對境內外關係企業具有控制能力者，以該關係企業直接及間接持有低稅負區關係企業之股份或資本額比率合併計算；未超過百分之五十者，按境內外關係企業各層持有比率相乘積合併計算。
三、符合下列各目規定之關係人及被利用名義之人，應比照前二款計算方式，將其直接及間接持有低稅負區關係企業之股份或資本額比率合併計算：
（一）第三條第二項第三款至第五款規定之關係企業。
（二）第三條第三項第一款至第十款規定之關係人。
（三）個人利用他人名義進行股權移轉或其他安排，不當規避前二目構成要件者。
四、依前三款規定計算個人及其關係人直接或間接持有低稅負區關係企業之股份或資本額比率，如有重複計算情形，以較高者計入。
個人及其關係人，於當年度十二月三十一日以前有藉股權移轉或其他安排，不當規避前二項構成要件者，稽徵機關得以當年度任一日依前二項方式合併計算之持有低稅負區關係企業股份或資本額最高比率認定之。
第一項所稱具有重大影響力，指個人及其關係人對低稅負區關係企業之人事、財務或業務經營具有控制能力。