Regulations Governing Application of Recognizing Income from Controlled Foreign Company for Profit-Seeking Enterprise Article 2
For any profit-seeking enterprise and its 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.A profit-seeking enterprise shall recognize the investment income of the controlled foreign company mentioned in the preceding paragraph in accordance with these Regulations and include it in the taxable income of the current year. However, this provision does not apply to a controlled foreign company subject to Article 43-4 of the Income Tax Act or meeting the criteria of Paragraph 1 of Article 5 of these Regulations.For a profit-seeking enterprise and its 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 the closing date of the current fiscal year shall be determined by aggregating the holding ratios calculated based on the following methods:1. Where the profit-seeking enterprise directly holds the shares or capital of the said affiliated enterprise in a low-tax jurisdiction, its holding ratio shall be aggregated into the said calculation.2. Where, through a domestic or foreign affiliated enterprise, the profit-seeking enterprise indirectly holds the shares or capital of an affiliated enterprise in a low-tax jurisdiction, and its holding ratio of the shares or capital of such domestic or foreign affiliated enterprise is over 50%, or it 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 profit-seeking enterprise 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)The affiliated enterprise directly holds over 50% of the shares or capital of the profit-seeking enterprise.(2)The affiliated enterprise indirectly holds the shares or capital of the profit-seeking enterprise, and its holding ratio in each layer is over 50%.(3)According to the Enterprise Accounting Standard and interpretations thereof announced by the Accounting Research and Development Foundation, or according to International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations, and interpretative announcements endorsed by the Financial Supervisory Commission, or according to the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the Financial Accounting Standards endorsed by the Republic of China), the affiliated enterprise has control over the profit-seeking enterprise.(4)An affiliated enterprise as defined in Subparagraphs 4 to 6 and Subparagraph 9 of Paragraph 2 of Article 3.(5)A related party as defined in Subparagraphs 1 to 6 of Paragraph 4 of Article 3.(6)Other related parties sufficiently proven to have control over the personnel, finance, or business operations of the profit-seeking enterprise.(7)The said profit-seeking enterprise that inappropriately circumvents the constituent elements prescribed in the preceding six items by the share transfer or other arrangements under another's name.4. For the profit-seeking enterprise and its 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 profit-seeking enterprise and its related parties have inappropriately circumvented the constituent elements specified in the preceding paragraph by the share transfer or other arrangements before the closing date of the current year, the tax authority may determine their 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 subparagraphs of the preceding paragraph.The term "significant influence" mentioned in the first paragraph shall refer to the profit-seeking enterprise and its 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 營利事業認列受控外國企業所得適用辦法第2條
營利事業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。
營利事業應依本辦法規定認列前項受控外國企業之投資收益，計入當年度所得額課稅。
但受控外國企業適用本法第四十三條之四或符合第五條第一項規定者，不適用之。
第一項所定營利事業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，以該營利事業當年度決算日依下列方式合併計算之股份或資本額比率認定：
一、營利事業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、營利事業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）關係企業直接持有營利事業股份或資本額比率超過百分之五十者。
（二）關係企業間接持有營利事業股份或資本額且各層持有比率超過百分之五十者。
（三）依財團法人中華民國會計研究發展基金會公開之企業會計準則公報及其解釋，或金融監督管理委員會認可之國際財務報導準則、國際會計準則、解釋、解釋公告及證券發行人財務報告編製準則（以下簡稱中華民國認可財務會計準則）規定，關係企業對營利事業具有控制能力者。
（四）第三條第二項第四款至第六款及第九款規定之關係企業。
（五）第三條第四項第一款至第六款規定之關係人。
（六）其他足資證明對營利事業之人事、財務或業務經營具有控制能力之關係人。
（七）營利事業利用他人名義進行股權移轉或其他安排，不當規避前六目構成要件者。
四、依前三款規定計算營利事業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。
營利事業及其關係人，於當年度決算日以前有藉股權移轉或其他安排，不當規避前項構成要件者，稽徵機關得以當年度任一日依前項各款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，指營利事業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。
營利事業應依本辦法規定認列前項受控外國企業之投資收益，計入當年度所得額課稅。
但受控外國企業適用本法第四十三條之四或符合第五條第一項規定者，不適用之。
第一項所定營利事業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，以該營利事業當年度決算日依下列方式合併計算之股份或資本額比率認定：
一、營利事業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、營利事業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）關係企業直接持有營利事業股份或資本額比率超過百分之五十者。
（二）關係企業間接持有營利事業股份或資本額且各層持有比率超過百分之五十者。
（三）依財團法人中華民國會計研究發展基金會公開之企業會計準則公報及其解釋，或金融監督管理委員會認可之國際財務報導準則、國際會計準則、解釋、解釋公告及證券發行人財務報告編製準則（以下簡稱中華民國認可財務會計準則）規定，關係企業對營利事業具有控制能力者。
（四）第三條第二項第四款至第六款及第九款規定之關係企業。
（五）第三條第四項第一款至第六款規定之關係人。
（六）其他足資證明對營利事業之人事、財務或業務經營具有控制能力之關係人。
（七）營利事業利用他人名義進行股權移轉或其他安排，不當規避前六目構成要件者。
四、依前三款規定計算營利事業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。
營利事業及其關係人，於當年度決算日以前有藉股權移轉或其他安排，不當規避前項構成要件者，稽徵機關得以當年度任一日依前項各款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，指營利事業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。