Oct 03

According to a statistic from Financial Supervisory Commission Taiwan, the total amount of deposits among the domestic banks is up to 36.82 trillion NTD, and the total amount of loans is 26.79 trillion NTD. That is a total amount of 10 trillion idle funds possessed by the domestic banks.

Due to the record highs of idle funds among the domestic banks, there are some banks relaxing mortgage regulations, including lowering interest rates and rising Loan-To-Value Ratios (LTV Ratio), to attract the public to apply for loans, and to cooperate with new construction plans to launch a high LTV Ratio of 80%.

written by Good Earth

Sep 30

Extracted from China Times

Sept. 26, 2017

Mainland China tourists are not coming and hotels are crying for sale? Beginning this year, at least 600 hotels throughout Taiwan are said to be selling off, seemingly an unstoppable tide of resale. The trend of investing in the hotel industry since 2008, the commencement of Taiwan’s Open-Door Policy to mainland tourists, has boosted an increase of tourism hotel rooms by 6,000 to reach 28,000 rooms and general hotel rooms by 46,000 to reach 152,000 rooms, but the upcoming new tourism hotel rooms, amounting to 14,000, account for half of the existing tourism hotel rooms. The average operational condition of the tourist hotels in Taiwan bears market impact, resulting in a gradual slide of the average rate of occupancy from 72% in 2014 to 67% in 2017.

Sept. 28, 2017

With a great decrease of mainland tourists in Taiwan, the DDP government is taking a proactive measure of New Southbound Policy. Following the “Taiwan Tourism Development Forum” held yesterday, Yong-dian Liao, GM of Hwafu Tourism Group – one of the first two leading travel agencies, pointed out that “The low consuming power of the countries from New Southbound Policy has severe impacts on the tourism industry chain. Rumors spread that the big two HongKong-funded shopping sites with serial losses are considering closing their businesses in Taiwan, which may cause a sharp rise of unemployment in the tourism industry.”

written by Good Earth

Sep 19

Huang Nubo, president of Beijing Zhongkun Investment Group, opines that the real estate industry in China has slumped down to a vicious circle, like quenching thirst with poison, where the whole industry bears trillions of assets and debts at the same time while its sluggish capital turnover is nibbling up its profits and interests. Smaller real estate businesses may have chances to turn around, but the bigger players may not get away from going bankrupt.

written by Good Earth

Feb 02

Ministry of Finance has further relaxed customs procedures for free trade zone goods in line with the July 2009 revision of the Act for the Establishment and Management of Free Trade Zones. The relaxation will benefit free trade zone companies that engage in business and trade activities, and facilitate development of the MICE (meetings, incentive travel, conventions, and exhibitions) industry. Continue reading »

written by Good Earth

Jan 15

Government Response to ECCT suggestions on various topics:
Asset Management:
Cancellation of ceiling amount on the raising of onshore funds and lowering of the minimum amount from NT$600 million to NT$300 million.
Automotive Industry:
1. Lowering, by the Environmental Protection Administration, of the sulfur content for domestically refined and imported motor gas and diesel fuel in reference to the EU’s control standards for automotive fuel.
2. Revision, by the Environmental Protection Administration, of stage V emissions standards for diesel vehicles to harmonize with Euro 5 regulations. The revision is to be implemented in 2012. Continue reading »

written by Good Earth

Jan 04

The period of visa-free stays in Taiwan for citizens of New Zealand has been extended to 90 days, up from the original 30, effective November 30. The Ministry of Foreign Affairs (MOFA), which announced the extension recently, expects it to help bring more international travelers to Taiwan and invigorate the island’s tourism industry. Continue reading »

written by Good Earth

Dec 11

A company that establishes a headquarters in Taiwan that reaches a certain scale with significant economic effect will be exempt from profit-seeking-enterprise income tax on income derived from providing management or R&D services to related foreign companies it has acquired (i.e. royalty income, profits from investment and gains from the disposition of property). Continue reading »

written by Good Earth

Dec 04

In the World Bank’s Doing Business 2010 report, Taiwan’s ranking in the “Ease of Doing Business” index soared 15 places to the 46th among the 183 countries covered. In degree of improvement, this ranked Taiwan the 5th in the world. Continue reading »

written by Good Earth

Nov 23

Based on recent changes in retirement benefits, according to the law an employee upon retirement currently may receive benefits from up to three sources, depending on the employee’s retirement scheme selection. Continue reading »

written by Good Earth

Nov 16

The Financial Supervisory Commission (FSC) recently relaxed restrictions on real estate transactions by insurance companies and non-interested parties. In the future, insurance firms will be able to choose either stockholders’ equity or enterprise funds to use as the measure of threshold for such transactions.
When insurance firms carried out real estate transactions with the same person, the same interested party, or the same affiliated enterprise in the past, the amount of a single transaction could not exceed 35% of stockholders’ equity and the total amount of all transactions could not exceed 70%. With many insurance companies experienced reduced net worth because of the financial crisis, the FSC indicates, the original rules led to an increased difficulty of real estate investment by insurance firms. In view of the relatively high threshold for real estate transactions compared with general investment tools, the relative stability of prices, and the problem of finding alternative investments, plus the differences in the characteristics of this type and other types of investment, the revision provides for the use of insurance enterprises’ funds in calculating the amount of real estate investment in order to realize differentiated management.

Continue reading »

written by Good Earth