Merger and Acquisition Act not applicable to merger of Taiwan branches of foreign companies

Source: Economic Daily News 04/27/2002

Translated by Jem Chung

 

    The Ministry of Economic Affairs decided that the Merger and Acquisition Act applies to neither the merger of Taiwan branches of two foreign companies nor the acquisition of a foreign company's Taiwan branch by a local company.  Such merger/acquisition is not entitled to tax benefits and other benefits.

 

    The MOEA pointed out that owing to the fact that a foreign company's Taiwan branch is not a body corporate, merger/acquisition involving a foreign company's Taiwan branch is only applicable to the Civil Code's prescriptions regarding assignment of property, but not the Merger and Acquisition Act and relevant benefits.  By the same token, the said Act does not apply to the acquisition of a foreign company's Taiwan branch by a local company.