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Home > Investor Education > Foreign Investment > Interpretation concerning Foreign Investors selling own securities  
 Interpretation concerning Foreign Investors selling own securities
　Upon accepting any account opening consignment from overseas Chinese or foreign investors for selling securities, a securities firm shall observe relevant laws and regulations and process the matter in accordance with the following (Article 77 of the Operation Rules of Taiwan Stock Exchange Corporation)
   
• Where approval was obtained from the Investment Commission of the Ministry of Economic Affairs, Science-Based Industrial Park Administration, or the Export Processing Zone Administration, a copy of the approval letter and tax return power of attorney in the form specified by the tax collection authority (submission of the latter is not compulsory during the period when gains from stock exchange are exempt from taxation), must be retained, and the type of securities trading and trading volume undertaken shall be in conformance with the approved investment plan.
   
• Where the listed securities and the resulting rights for subscription of capitalization increase or stock divided are obtained due to gift, succession, pursuant to Section 2 of Article 167, (transfer of the bought-back shares), Article 167-2 (the share subscription warrant), Article 235 & 240 (shares acquired due to the company!|s distribution of dividend), Article 267 (new shares bought by the company!|s employees), the Company Law and Sub-section 1, Section 1 of Article 28 (transfer of the bought-back shares), Article 28-3 (the share subscription warrant), the Securities and Exchange Law, or for the securities acquired prior to relinquishing one's original nationality, or before the !¥Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals and Its Remittance!| took effect on December 28, 2000, and the newly acquired shares due to the capital increase as well as the distributed shares based on such securities, the copy of passport and the following documents shall be presented to apply to the securities firm for account opening (general account), and it is limited to sales of the above-mentioned securities only. In addition, the shares acquired in compliance with the above may be also sold in application mutates mutandis to Article 28-1 of Operation Rules of TWSE, i.e., sold by a borrowing account. But, only a national general account can be borrowed for selling,
   
• Documents Enclosed:
  (1)Where the listed securities and the said entitlements are obtained through gift, transfer procedure shall be completed and the paper of tax-payment or tax-exemption for gift issued per Article 41 of the Estate and Gift Taxes Law shall be submitted.
(2)Where the listed securities and the said entitlements are obtained through succession, transfer procedure shall be completed and the paper of tax-payment or tax-exemption for legacy issued per Article 41 of the Estate and Gift Taxes Law shall be submitted.
(3)Where the listed securities and the said entitlements are obtained pursuant to Section 2 of Article 167-1, Article 167-2, Article 235, Article 240, Article 267 of the Company Law, and Sub-section 1, Section 1, Article 28-1, Article 28-3 of the Securities and Exchange Law, a certificate of employment valid at the time of share subscription, share distribution, and share transfer, and documents evidencing subscription rights shall be submitted.
(4)Where the listed securities are obtained prior to relinquishing one's original nationality, or the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals and Its Remittance took effect on December 28, 2000, document proving the source of the listed securities or other relevant documents shall be submitted.