On April 30, 2024, the Legislative Yuan passed the amendment to the Electronic Signatures Act during the 11th meeting of the first session of its 11th term. This amendment, the first in over 20 years since the Electronic Signatures Act was implemented on April 1, 2002, is a response to the economic activities and social developments in the digital era, and will make a significant impact to Taiwan’s legal framework for electronic signatures. It also demonstrates the government’s determination to promote the widespread use of electronic signatures and to align with the global wave of digital transformation. According to the press release from the Ministry of Digital Affairs, the key points of this amendment are as follows:

1. Expressly providing that electronic documents and electronic signatures have the same legal validity as physical documents and physical signatures, and their legal effect cannot be denied merely because of their electronic form (amended Article 4).

2. Expressly clarifying that digital signatures are a type of electronic signature, thereby making the relationship between electronic signatures and digital signatures more explicit (amended Article 2, Subparagraph 3).

3. Expressly providing that digital signatures supported by a certificate issued by a certification authority approved by the government shall be presumed to have the same effect as the signature or seal affixed in person (amended Article 6).

4. To balance between digitalization needs and digital inclusion, the amendment expressly provides that, before adopting an electronic form, the counterparty must be given a reasonable opportunity to object; if the counterparty does not object, it is presumed that they consent to the use of the electronic form (amended Article 5, Paragraph 4).  

5. To enhance the application of electronic documents and electronic signatures by smart government, the current regulation allowing administrative agencies to announce the exclusion of electronic signatures is deleted. A one-year sunset clause is also provided (with a maximum two-year extension if necessary). This means that all administrative agencies must comply with the Electronic Signatures Act within three years of the amendment’s implementation (amended Articles 11 and 20).

6. Considering the potential for future international reciprocity in recognition of electronic signatures, the competent authority may recognize certificates issued by international certification bodies under the principles of equivalent secure requirements and conforming to international reciprocity or technical interoperability and cooperation (amended Article 15).

According to the Ministry of Digital Affairs, the expected benefits of this amendment include expanding the application scope of natural person identification card (Citizen Digital Certificate) and industrial commerce identification card (MOEACA Certificate), improving convenience for the public when interacting with the government and banks, reducing the cost of KYC (Know Your Customer) processes in digital economy-related industries, and enhancing the convenience of cross-border e-commerce.

Moreover, electronic signatures may help prevent fraud. For example, the Ministry of Digital Affairs is currently working with the Ministry of Economic Affairs to promote the requirement for online advertising platforms to verify the digital signatures of advertisers. This would provide platforms with a more convenient mechanism for verifying customer identities, effectively reducing fake accounts at the source, and, at the same time, enable quicker removal of online scam advertisements through a cross-platform joint defense mechanism.

Referencing international legal frameworks such as the UNCITRAL Model Law on Electronic Commerce, the U.S. E-SIGN Act, Korea’s Digital Signature Act, and the EU’s eIDAS Regulation, Taiwan’s legal system for electronic signatures urgently needed reform. This amendment is expected to make electronic signatures fully realize their advantages of improving efficiency, reducing costs, ensuring transaction security, and lessening environmental impact. Its overall benefits are highly anticipated.

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