The Financial Supervisory Commission (FSC), in order to promote the internationalization of enterprises and attract international talent, will shortly issue an interpretive ruling allowing foreign employees of TWSE/TPEx-listed companies, and of their affiliated enterprises having a controlling or subordinate relationships with such companies, to participate in Employee Stock Ownership Trusts (ESOTs) and invest in the shares of the domestic TWSE/TPEx–listed company they work for or that belongs to their corporate group.
Key points are as follows:
- Foreign Investment Registration Framework
Trust enterprises will serve as the registrant for foreign investment purposes and will register dedicated ESOT investment accounts for onshore or offshore foreign employees with the TWSE, in order to resolve the regulatory obstacles to foreign employees’ participation in ESOTs.
- Flexible Measures for Consolidated Trading
Given that the monthly contributions made by foreign employees based in Taiwan toward share purchases are relatively small, trading independently through a dedicated account may prevent share purchases from being completed smoothly. The FSC has therefore established a flexible measure allowing trust enterprises to execute the purchase and sale of shares through the domestic employees’ ESOT investment account on a consolidated basis.
- Implementation Schedule
The FSC has directed the TWSE and the TPEx to amend the relevant rules and regulations. The TWSE, the Taiwan Depository & Clearing Corporation (TDCC), trust enterprises, and other relevant parties will subsequently carry out system development and implementation, with the new measures expected to take effect in the Q4 of 2026.
The FSC stated that once these measures take effect, foreign employees will be able to invest in TWSE/TPEx-listed shares through the trust mechanism on the same basis as Taiwanese employees. This will help deepen long-term relationships between enterprises and international talent, implement employee retention and incentive mechanisms, and promote the long-term development of Taiwan’s capital market.
