17 September 2021
The draft amendment to “Act for the Recruitment and Employment of Foreign Professionals” was approved by the Legislative Yuan on June 18, 2021, and was promulgated by the Presidential Decree on July 7 (Implementation date to be decided by the Executive Yuan). The revised content loosens on foreign professionals’ work, residency, dependents, and other related restrictions, and provides more favorable social securities. A summary of relevant revisions are as follows:
1. Broader definitions for “professional work” and “field of expertise”:
Adding subject teachers for “Special Classes for Children of Foreign Talents” approved by the Ministry of Education and teachers of experimental education to the scope of “professional work” of foreign professional defined by the act. Moreover, adding the previously announced “financial, legal, and architectural design fields”, and the “field of national defense” to “special expertise” of foreign special professionals recognized by the act, and building the consultation mechanism of the competent authority (the National Development Council)on examining the expertise of “foreign special professional” with relevant authorities.
2. Two-year work experiences exemption for top graduates:
“Graduates of the world’s top universities announced by the Ministry of Education” intending to engage in specialized or technical work in Taiwan (in reference to Article 46, Paragraph 1, Subparagraph 1 of the Employment Service Act) are exempted from being required to have at least two years of work experiences.
3. Simplify work and residence permit procedures:
Foreign professionals and their dependent relatives who have obtained permanent residency are exempt from applying for work permits to work in Taiwan (Article 7). Foreign professionals who have obtained work permits or are exempt from work permits and their relatives can apply directly to the Immigration Department of the Ministry of the Interior for alien residence certificates without applying for resident visas (Article 12).
4. Employment gold card extension:
Foreign professionals holding employment gold cards (a combination of work permit, resident visa, alien residence certificate, and re-entry permit) are not required to reapply for another card if they intend to continue their professional work after its expiration date. They only need to apply for an extension before the expiration date, each time for a maximum of three years, which helps avoid an interruption of the duration of permits from reapplication (Article 9).
5. Application for an extension of residency before the expiry of the employment gold card:
If a foreign special professional holding an employment gold card needs a residency after the expiry of the employment gold card, they may apply for an extension of residency for a maximum of one year (Article 13)
6. Relaxing requirements for permanent residency:
The required presence in Taiwan for foreign professionals who intend to apply for permanent residence will be changed from 183 days per year to an “average” of 183 days per year. The length of required period of residence for foreign special professionals to apply for permanent residence is reduced from “5 years of legal and continuous residence” to “3 years of legal and continuous residence”. In addition, required period of residence may be reduced by 1 to 2 years for those who have obtained a master’s or doctoral degree in Taiwan (Article 14).
7. Extension on tax concession:
The applicable period of tax concession for foreign special professionals is extended from 3 years to 5 years. (Article 20)
8. Broadening social securities :
Foreign special and senior professionals who are employers or self-employed business owners, and their dependent relatives, can directly join the National Health Insurance without a 6-month wait (Article 21). Furthermore, the retirement pension system is also opened to unemployed foreign professionals and foreign special professionals who obtained permanent residency (Article 22). Moreover, retirement regulations for public schools teachers’ are applied to foreign professionals, foreign special professional, and foreign senior professional hired as teachers and researchers in public schools or as researchers in government agencies and institutions; and those who obtained permanent residency could choose between a lump-sum pension or monthly pension.
For further information, please contact:
Elizabeth Pai, Partner, Lee Tsai & Partners
lawtec@leetsai.com
