Principal and Interest Repayment/Taxation Services

Principal and interest payments and taxation of international bonds/registered foreign bonds

Introduction

1.Principal and interest payments

(1)registration at a foreign depository

A.Participants should provide a register of holders of foreign currency-denominate bonds that are deposited with TDCC and a list of payment receivers before the record date for principal and interest payments. TDCC will process the register and list in tandem with the payment arrival notification from foreign depository, book-entry or clearing agencies to compile a bond ownership register.

B.Upon receiving an arrival notification of principal and interest payments from a foreign depository, book-entry or clearing agency, TDCC will instruct the agency to transfer the proceeds to TDCC’s designated collection and payment account.

C.Upon receiving the aforesaid proceeds, TDCC will instruct the designated collection and payment bank to credit the foreign currency accounts, deducting the remittance and other applicable service fees, on the next business day based on the bond ownership register and payable amounts compiled by TDCC.

(2)For international bonds registered with TDCC: The payment of principal and interest should be carried out in the same fashion as NT dollar-denominated bonds.

2.Taxation:

Upon receiving a notification from a foreign depository regarding local taxation rules pursuant to foreign currency-denominated bonds, TDCC should find out whether participants holding the securities are required to provide any relevant documents. If so, TDCC should remind the participants to prepare the taxation documents before the deadline instructed by the foreign depository to ensure investors’ interests are protected.

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Regulations Announcement
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