Regulations Governing Application of Recognizing Income from Controlled Foreign Company for Profit-Seeking Enterprise Article 7
A profit-seeking enterprise that directly holds shares or capital of a controlled foreign company, where the controlled foreign company possesses financial instruments measured at fair value through profit or loss (hereinafter referred to as FVPL), may choose to process based on the provisions of this article; the selected method cannot be changed once chosen unless as prescribed in Paragraph 5.A profit-seeking enterprise shall choose the same calculation method for all its controlled foreign companies in which it holds shares or capital directly; it shall disclose relevant information and attach or prepare documents as prescribed in Article 10.A profit-seeking enterprise that chooses to comply with the provisions of this article, when calculating the current-year earnings of the controlled foreign company as per Subparagraph 1 of Paragraph 1 of the preceding article, may deduct the amount of FVPL's fair value changes; the said enterprise shall add the adjustment amount for the disposal of FVPL while disposing of FVPL, and add the adjustment amount for the reclassification of FVPL while reclassifying FVPL:1. The specified "amount of FVPL’s fair value changes" refers to the balance of the gains arising from FVPL's fair value changes minus the losses arising from FVPL's fair value changes.2. The specified "adjustment amount for the disposal of FVPL" refers to the balance of the FVPL's book value on the disposal date minus the FVPL's original acquisition cost.3. The specified "adjustment amount for the reclassification of FVPL" refers to the balance of the FVPL’s fair value on the date of reclassification minus the FVPL’s original acquisition cost when the FVPL is reclassified as a financial instrument measured at amortized cost or measured at fair value through other comprehensive income.The calculation methods specified in the subparagraphs of preceding paragraph shall conform to the following provisions:1. For the amounts specified in the subparagraphs of preceding paragraph, if the amount obtained is positive, it shall be included as a positive figure in the calculation; if the amount obtained is negative, it shall be included as a negative figure in the calculation.2. The FVPL's original acquisition cost shall be determined based on its book value at the beginning of the year in which this article is chosen to apply; for a FVPL which is acquired or reclassified from another type of financial instrument during that year, its original acquisition cost shall be determined based on its book value on the purchase date or reclassification date.3. The FVPL’s original acquisition cost shall be determined based on one of the calculation methods prescribed in Article 46 of the Enforcement Rules of the Income Tax Act; the selected method cannot be changed once chosen until the said FVPL is entirely disposed of.If a profit-seeking enterprise chooses to calculate the current-year earnings of a controlled foreign company in which it holds shares or capital directly as per the four preceding paragraphs of this article, but fails to provide documents within the deadline as prescribed in Subparagraphs 1 to 4 of Paragraph 1 of Article 10 or fails to provide documents within the deadline as required by the Subparagraph 4 of Paragraph 2 of the same article, or this enterprise does not consistently use the same method for calculating the current-year earnings of the controlled foreign company, then from the year of such non-compliance or non-consistent calculation first occurs, the said enterprise is disqualified from applying the provisions of this article for ten years. Moreover, the net adjustment amount of current-year earnings of the controlled foreign companies as per the two preceding paragraphs shall be accumulated to the closing date of the year in which non-compliance or inconsistency first occurred; such accumulation shall then be included in the current-year earnings of the same year in accordance with the provisions of the preceding article.
中文原文 營利事業認列受控外國企業所得適用辦法第7條
營利事業直接持有股份或資本額之受控外國企業持有透過損益按公允價值衡量之金融工具（以下簡稱FVPL），得選擇依本條規定辦理，一經選定，除第五項規定情形外，不得變更。
營利事業應就全部直接持有股份或資本額之受控外國企業擇定相同計算方式，並應依第十條規定揭露相關資訊及檢附或備妥文件。
營利事業選擇依本條規定辦理者，於依前條第一項第一款計算受控外國企業當年度盈餘時，得減除FVPL公允價值變動數，處分FVPL時，應加計處分FVPL調整數；FVPL重分類時，應加計重分類FVPL調整數：
一、所定FVPL公允價值變動數，指FVPL因公允價值變動所產生之利益減除FVPL因公允價值變動所產生之損失。
二、所定處分FVPL調整數，指處分日帳面價值減除原始取得成本之金額。
三、所定重分類FVPL調整數，指FVPL重分類至按攤銷後成本衡量或透過其他綜合損益按公允價值衡量時，重分類日公允價值減除原始取得成本之金額。
前項各款計算方式，並應符合下列各款規定：
一、前項各款數額為正者，以該正數計入，各款數額為負者，以該負數計入。
二、FVPL之原始取得成本，以選擇依本條規定辦理年度之FVPL期初帳面價值認定之；於該年度中始取得或重分類至FVPL者，以購買日或重分類日帳面價值認定之。
三、FVPL之原始取得成本，應採用本法施行細則第四十六條規定之計算方法，但一經擇定，於該FVPL全部處分前，不得改採其他成本認定方式。
營利事業選擇依前四項規定計算其直接持有股份或資本額之受控外國企業當年度盈餘者，其未依第十條第一項第一款至第四款規定依限檢附或提供文件及同條第二項第四款規定依限提示文件，或未連續採用相同方式計算者，自未檢附或未提示文件所屬年度或未採用相同方式之年度起十年內不得適用本條規定，且應將該等受控外國企業已依前二項規定調節之損益累積至該年度決算日金額，計入同年度依前條規定計算之當年度盈餘。
營利事業應就全部直接持有股份或資本額之受控外國企業擇定相同計算方式，並應依第十條規定揭露相關資訊及檢附或備妥文件。
營利事業選擇依本條規定辦理者，於依前條第一項第一款計算受控外國企業當年度盈餘時，得減除FVPL公允價值變動數，處分FVPL時，應加計處分FVPL調整數；FVPL重分類時，應加計重分類FVPL調整數：
一、所定FVPL公允價值變動數，指FVPL因公允價值變動所產生之利益減除FVPL因公允價值變動所產生之損失。
二、所定處分FVPL調整數，指處分日帳面價值減除原始取得成本之金額。
三、所定重分類FVPL調整數，指FVPL重分類至按攤銷後成本衡量或透過其他綜合損益按公允價值衡量時，重分類日公允價值減除原始取得成本之金額。
前項各款計算方式，並應符合下列各款規定：
一、前項各款數額為正者，以該正數計入，各款數額為負者，以該負數計入。
二、FVPL之原始取得成本，以選擇依本條規定辦理年度之FVPL期初帳面價值認定之；於該年度中始取得或重分類至FVPL者，以購買日或重分類日帳面價值認定之。
三、FVPL之原始取得成本，應採用本法施行細則第四十六條規定之計算方法，但一經擇定，於該FVPL全部處分前，不得改採其他成本認定方式。
營利事業選擇依前四項規定計算其直接持有股份或資本額之受控外國企業當年度盈餘者，其未依第十條第一項第一款至第四款規定依限檢附或提供文件及同條第二項第四款規定依限提示文件，或未連續採用相同方式計算者，自未檢附或未提示文件所屬年度或未採用相同方式之年度起十年內不得適用本條規定，且應將該等受控外國企業已依前二項規定調節之損益累積至該年度決算日金額，計入同年度依前條規定計算之當年度盈餘。