Taiwan Extends Tax Refund Period for funds to 10 Years – Key Update 2025

April 2025 – TAIPEI: In a significant policy shift benefiting foreign investors, Taiwan’s Ministry of Finance has officially extended the statute of limitations for claiming tax refunds from five years to ten years, effective April 10, 2025. This change marks a major step forward in aligning Taiwan’s refund procedures with international standards and offers substantial benefits for global fund managers, tax professionals, and cross-border investors.

What Changed? – A 2025 Tax Refund Reform in Taiwan

The amendment affects Article 34 of Taiwan’s “Regulations Governing the Implementation of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income.” Key elements of the reform include:

• Effective Date: April 10, 2025
• New Refund Period: 10 years from the tax payment date
• Applicable To: Tax payments made on or after April 11, 2020
• Pre-2020 Taxes: Still subject to the original 5-year deadline

Implications for Cross-Border and Institutional Investors

This extended timeline offers multiple strategic benefits, especially for institutional investors and cross-border fund managers:

• More Time for Refund Processing – Gives stakeholders additional breathing room to compile documents and submit refund claims.
• Improved Tax Planning – Enables better alignment of refund strategies with long-term financial planning cycles.
• Reduced Compliance Risk – Minimizes the likelihood of missing statutory deadlines, especially in complex international tax structures.

International Tax Treaties Still Take Precedence

Although this update applies broadly, it’s important to note that double tax treaties (DTTs) between Taiwan and other jurisdictions may contain specific provisions on refund deadlines. In such cases, the treaty provisions will override local law.

Globe Refund Recommendations

To maximize the benefits of this new policy:

1. Audit all past tax payments made since April 2020 to identify refund opportunities.
2. Review DTTs to determine if specific deadlines apply to your jurisdiction.
3. Act early, even with a longer window – regulatory environments can evolve, and earlier submissions reduce the risk of missed refunds.

Optimizing Tax Reclaims in Asia – Why It Matters in 2025

With growing capital flows into Asian markets, tax efficiency is more crucial than ever. Taiwan’s decision to extend the refund period strengthens its position as a globally attractive investment destination and reduces friction for foreign capital.