Regulations Governing Application of Recognizing Income from Controlled Foreign Company for Profit-Seeking Enterprise Article 4

The term "low-tax jurisdiction" referred to in Article 2 shall mean the country or jurisdiction of affiliated enterprises who meets any of the following conditions:1. The statutory tax rate of the profit-seeking enterprise income tax or substantially similar tax in the affiliated enterprise’s country or jurisdiction is not more than 70% of the tax rate prescribed in Subparagraph 2, Paragraph 5, Article 5 of the Income Tax Act.2. The affiliated enterprise’s country or jurisdiction taxes only on income sourced from it, and foreign-sourced income is either not taxed or is taxed only upon actual remittance.For a country or jurisdiction that applies a specific tax rate or tax regime to a given region or type of enterprise, such specific tax rate or regime shall be considered in the determinations under the preceding paragraph.The Ministry of Finance shall announce a reference list of low-tax jurisdictions prescribed in the first paragraph.