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Taipei
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Taichung
TEL:+886-4-2320-2793
Shanghai
TEL:+86 21-6090-4391
Shenzhen
TEL:+86 755-83176807
Taiwan OBU (OFFSHORE BANKING UNIT) is the abbreviation of International Financial Business Branch.
It is often mistaken for OBU to refer to an offshore company. In fact, OBU actually refers to an account opened by an overseas company in Taiwan.
The government separates it from the local financial system, uses foreign currency as a transaction intermediary, and the overseas customer is the transaction object.
Tax relief, or exemption from financial controls and other preferential conditions, attract international financial industry to come to engage in financial business.
I.What is an OBU account?
Since the central bank has greatly expanded the business scope of OBU, it has allowed OBU to undertake the development, notification, and bill of exchange of letters of credit. As the cross-strait economic and trade activities become more and more enthusiastic, the opening of the letter of credit business will enable the function of OBU to be further developed.
- The OBU account features are as follows:
Freedom of funds:
Freedom of international exchange, liberalization of capita lmovements, and generally no restrictions on the funds of international financial business branches. In the name of an overseas company, it is possible to avoid the exchange rate difference caused by the return of overseas surpluses to the Taiwanese parent company and remittance.
Tax concessions:
In terms of national policy, Taiwan often grants deposit reserves, deposit insurance and deposit discounts to international financial business branches. There are deposits in various international currencies, which is conducive to attracting more businessmen engaged in various industries to come and trade.
Tax simple:
Overseas companies have no local tax burden in Taiwan.The international trade carried out in the OBU, because ofthe transaction occurred abroad, is not subject to business tax, profit-making business income tax, stamp duty, and other taxes, and can retain funds overseas, which is conducive to tax arrangements and planning, in order to achieve legal and tax-saving.
Financial Facility:
OBU capital cost is low, and overseas customers can borrow from OBU to enjoy a preferential lending rate. It is easy to operate import and export business such as opening letters of credit and bills. Freedom of funds in and out, facilitating the expansion of overseas investment and international trade is not subject to the restrictions of domestic banking laws and central bank regulations and is not subject to interest rate management regulations.
Freedom of funds:
Freedom of international exchange, liberalization of capita lmovements, and generally no restrictions on the funds of international financial business branches. In the name of an overseas company, it is possible to avoid the exchange rate difference caused by the return of overseas surpluses to the Taiwanese parent company and remittance.
Tax simple:
Overseas companies have no local tax burden in Taiwan.The international trade carried out in the OBU, because ofthe transaction occurred abroad, is not subject to business tax, profit-making business income tax, stamp duty, and other taxes, and can retain funds overseas, which is conducive to tax arrangements and planning, in order to achieve legal and tax-saving.
Tax concessions:
In terms of national policy, Taiwan often grants deposit reserves, deposit insurance and deposit discounts to international financial business branches. There are deposits in various international currencies, which is conducive to attracting more businessmen engaged in various industries to come and trade.
Financial Facility:
OBU capital cost is low, and overseas customers can borrow from OBU to enjoy a preferential lending rate. It is easy to operate import and export business such as opening letters of credit and bills. Freedom of funds in and out, facilitating the expansion of overseas investment and international trade is not subject to the restrictions of domestic banking laws and central bank regulations and is not subject to interest rate management regulations.
II.OBU Advantage
- Exemption from profit-making business income tax, business tax, and stamp duty.
- Foreign currency accounts are not affected by exchange rate fluctuations.
- Capitalism and autonomy are high.
- It is easy to operate import and export business such as opening letters of credit and bills.
- Except as otherwise provided by the Ordinance, it is not regulated by the Managed Foreign Exchange Ordinance.
- Except as otherwise provided by the regulations, it is not subject to the restrictions of the domestic banking laws and central bank regulations.
- Except as otherwise provided by the regulations, it is not subject to the interest rate management regulations.
- Deposits are free of deposit reserve and are free of bad debts.
- It is regarded as a bank account outside Taiwan and is highly confidential.
Ⅲ. OBU Opening Qualification
- Natural person:
An individual who holds a foreign passport and has no residence in Taiwan.
- Legal person:
Legal person incorporated locally in Taiwan: the overseas branch of a Taiwanese company.
- Offshore legal person
A. Foreign companies (excluding branches in Taiwan).
B. Foreign governments and financial institutions.
- Natural person:
An individual who holds a foreign passport and has no residence in Taiwan.
- Legal person:
Legal person incorporated locally in Taiwan: the overseas branch of a Taiwanese company.
- Offshore legal person
A. Foreign companies (excluding branches in Taiwan).
B. Foreign governments and financial institutions.
IV.OBU's operational scope of business
Offshore Deposit Business
The currencies that banks in Taiwan can basically serve are: US dollar, Hong Kong dollar, Japanese yen, British pound, mark, Swiss franc...etc.
Foreign Exchange Business
Including remittance inward/outward remittance/inward bill of exchange/clean bill collection/purchase of clean bills, etc.
Offshore Export Business
1. Letter of Credit Notification. 2. Letter of credit division and transfer. 3. Open the letter of credit. 4. Export collection. 5. Export bills against documents (D/A). 6. Pre-sale forward foreign exchange document against payment (D/P).
Offshore Import Business
1. Development of letter of credit: letter of credit at sight, letter of credit at forward time. 2. Pre-purchase forward foreign exchange. 3. Import collection: Acceptance Teaching Note (D/A). 4. Amendment of Letter of Credit. 5. Documents against Payment (D/P).
Offshore Credit Business
1. Personal loan. 2. Corporate M&A financing. 3. Enterprise operating working capital loan. 4. International joint loan. 5. Enterprise planned loans.
Overseas Guarantee Business
A. Develop a guaranteed letter of credit (Stand by L/C). B. Letter of Guarantee: Performance Guarantee, Loan or Financing Guarantee, Foreign Bidding Deposit Guarantee, Installment Import Guarantee.
Offshore Deposit Business
TW The currencies that banks in Taiwan can basically serve are: US dollar, Hong Kong dollar, Japanese yen, British pound, mark, Swiss franc…etc.
Offshore Export Business
Cedit 1. Letter of Credit Notification. 2. Letter of credit division and transfer. 3. Open the letter of credit. 4. Export collection. 5. Export bills against documents (D/A). 6. Pre-sale forward foreign exchange document against payment (D/P).
Offshore Credit Business
Personal 1. Personal loan. 2. Corporate M&A financing. 3. Enterprise operating working capital loan. 4. International joint loan. 5. Enterprise planned loans.
Foreign Exchange Business
Include Including remittance inward/outward remittance/inward bill of exchange/clean bill collection
/purchase of clean bills, etc.
Offshore Import Business
Cedit 1. Development of letter of credit: letter of credit at sight, letter of credit at forward time. 2. Pre-purchase forward foreign exchange. 3. Import collection: Acceptance Teaching Note (D/A). 4. Amendment of Letter of Credit. 5. Documents against Payment (D/P).
Overseas Guarantee Business
Develop A. Develop a guaranteed letter of credit (Stand by L/C). B. Letter of Guarantee: Performance Guarantee, Loan or Financing Guarantee, Foreign Bidding Deposit Guarantee, Installment Import Guarantee.