Global Daily Tax News, Taiwan Eases Common Reporting Standard Penalty Regime, (Dec 31, 2025)

On December 24, 2025, Taiwan's Finance Ministry enacted amendments to law governing penalties for non-compliance by financial institutions in relation to reporting obligations under the Common Reporting Standard.

The Ministry said the amendments are intended to broaden penalty exemptions and establish clearer and more proportionate penalty benchmarks to encourage compliance by Reporting Financial Institutions (RFIs).

The changes include penalty waivers for cases of errors in reporting and for limited cases of non-reporting where the issues were voluntarily corrected by financial institutions prior to tax authority intervention.

Further, penalties will be waived where a financial institution failed in performing the required due diligence procedures where the financial institution voluntarily corrected the issue before tax agency intervention.

In addition, penalties will be waived for first-time non-compliance, providing the financial institution cooperates in correcting the issues raised.

Further, the Ministry said, "Corresponding revisions to the Penalty Reference Table have been made to ensure penalties are clear, reasonable, and proportionate."

The changes took effect from December 26, 2025, including for pending investigations, except where application of the changes would result in a less favorable outcome for financial institutions.