In order to recruit foreign professionals and increase incentives for them to stay in Taiwan, the Legislative Yuan passed the third reading of the proposed amendment to the Act for the Recruitment and Employment of Foreign Professionals on June 18, 2021. The amendment was announced by the President on July 7 of the same year and the date of implementation will be set by the Executive Yuan. This amendment loosens several restrictions on work and residency, enhances social welfare and extends tax incentives. Its key points are summarized as follows:

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(I) Loosen the definition of professional field and professional work (Article 4)
In addition to the original eight fields of foreign special professional, the amendment now includes national defense and other fields identified by the competent authority. Professional work now includes teacher for children of foreign professionals and experimental education.

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(II) Loosen the job qualification for outstanding talents (Articles 6 & 7)
To encourage outstanding foreign talents to work in Taiwan, professionals in a specialized or technical field who have a master degree or above or have graduated from a top university will no longer need two years of work experience, except where restricted by law; those who are employed by a public or private university or academic research institution and those professionals who have obtained permanent residency and their dependents will not need to apply for a work permit.
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(III) Simplify the procedure for visa and residency application for professional talents and their dependents
1. To simplify the procedure for staying in Taiwan, those with an Employment Gold Card may apply for an extension when the card expires without having to apply for a new card. The maximum length for such an extension is three years. Those professionals who entered Taiwan with visa-exempt entry or visitor visa has been approved to conduct professional work may apply for residence without applying for visitor visa or resident visa. The same provision will applied to their dependents.. (Articles 9 & 12)
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2. Foreigners with an Alien Residency Card or Employment Gold Card may apply for an extension for residency before the expiration of the effective period of such a card if there is a need to continue residency status. If, after the expiration of such an extension, the need for residency still exists, another extension may be granted, with the maximum extension period for residency of one year. (Article 13)
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3. The requirement of length of stay in Taiwan for permanent residency application is amended from “more than 183 days each year” to “an average of more than 183 days per year.” The length of stay required for permanent residency for foreign special professionals is shortened from 5 years to 3 years. The length of stay required for a dependent applying for permanent residency is the same as the professional to lower the permanent residency application threshold for professionals and their dependents. (Articles 14 to 18)
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(IV) Enhance social welfare and extend tax incentives(Articles 20 to 23)
1. Tax incentivesfor foreign special professionals is extended from 3 years to 5 years and the tax benefit deferred period limitation has been canceled. Monthly-paid retirement plans for teachers apply to those who are employed in public schools, government agency and academic institutions.
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2. Before the amendment, only those who are employed to work as professionals may be covered by national health insurance. The amendment loosens the provision to include those who are employers or business owners and their dependents to be covered by national health insurance, and waives the 6 months waiting period.

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（Author: Yi-Hwa Lu, Intern Attorney）

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