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Q：
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Does the transfer of shares from one Taiwanese shareholder to another require a fund transfer?
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A：
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No fund transfer is required for the share transfer itself. However, the transferor must report the difference between the transfer price and the original capital contribution as part of their total income for the year and declare it in their individual income tax return accordingly.
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Q：
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Are the parties to a share transfer required to submit a share transfer agreement to the government?
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A：
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No, submission of a share transfer agreement to the government is not required. It is sufficient for both parties to sign a shareholder consent letter for submission to the competent authority for review. If there are specific rights or obligations related to the share transfer, the parties may independently draft a share transfer agreement.
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Q：
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Which is the competent authority for the application?
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A：
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If the share transfer involves foreign investment, prior approval from the Investment Commission of the Ministry of Economic Affairs is required before submitting the application to the competent local authority of the respective city or county. However, if the share transfer is solely between Taiwan nationals, approval from the Investment Commission is not required.
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Q：
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May shares of a close company (closely held company) be freely transferred?
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A：
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No. Restrictions on the transfer of shares must be stipulated in the company’s Article of Incorporation. The transferee has the right to request a copy of the Article from the company.
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Q：
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Is there a restriction period during which employees who acquire company shares are prohibited from transferring them?
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A：
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Yes. The company may impose a restriction on the transfer of shares by employees for a certain period; however, such restrictions shall not exceed a maximum duration of two years.
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FAQ
