The term “Reportable Account” referred to in these Regulations means an account held or jointly held by Reportable Persons or by a Passive NFE with Controlling Persons that are Reportable Persons, provided that it has been identified as such pursuant to the due diligence procedures described in Section 3.

The term “Reportable Person” referred to in these Regulations means a resident regulated by tax laws in a Reportable Jurisdiction, or an estate of a decedent that was a resident of a Reportable Jurisdiction. An Entity such as a partnership, a limited liability partnership, or a similar legal arrangement that has no residence for tax purposes shall be treated as a resident of the jurisdiction in which its place of effective management is situated.
Any of the following conditions met is not a Reportable Person described in the preceding paragraph:
1. A corporation the stock of which is regularly traded on an established securities market.
2. Any corporation that is a Related Entity of a corporation described in the preceding subparagraph.
3. A Governmental Entity.
4. An International Organization.
5. A Central Bank.
6. A Financial Institution.
The term “Reportable Jurisdiction” referred to in these Regulations means a country or a jurisdiction with which the ROC has concluded a tax information exchange treaty or agreement, to proceed with automatic exchange of Financial Account information, and is announced by the Ministry of Finance.

The term “Foreign Account” referred to in these Regulations means a Financial Account held or jointly held by Foreign Residents or by a Passive NFE with Controlling Persons that are Foreign Residents.
The term “Foreign Resident” referred to in these Regulations means a resident regulated by tax laws in a Foreign Jurisdiction, or an estate of a decedent that was a resident of a Foreign Jurisdiction. An Entity such as a partnership, a limited liability partnership, or a similar legal arrangement that has no residence for tax purposes shall be treated as a resident of the jurisdiction in which its place of effective management is situated.
The term “Foreign Jurisdiction” referred to in these Regulations means a country or a jurisdiction other than the ROC.

The term “Controlling Persons” referred to in these Regulations means natural persons who exercise control over an Entity, and shall be determined in the order of the following subparagraphs:
1. Directly or indirectly owning more than 25 percent of the Entity’s shares, capital, or equities.
2. Exercising control over the Entity through other means.
3. Holding the positions as senior managing officials.
In the case of a trust or other legal arrangements, the term “Controlling Persons” means the settlors, the trustees, the protectors, the beneficiaries, any other natural persons exercising ultimate effective control over the trust, or persons in equivalent or similar positions.

The term “Active NFE” referred to in these Regulations means a NFE that meets any of the following conditions:
1. Less than 50% of the NFE’s gross income for the preceding accounting year is from dividends, interest, rents, royalties, the excess of gains over losses from the sale or exchange of Financial Assets, the excess of foreign currency gains over foreign currency losses, or income derived from other non-active business, and less than 50% of the assets held by the NFE during the preceding accounting year are assets that produce or are held for the production of non-active business income.
2. The stock of the NFE is regularly traded on an established securities market, or the NFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market.
3. The NFE is a Governmental Entity, an International Organization, a Central Bank, or an Entity wholly owned by a Governmental Entity, an International Organization, or a Central Bank.
4. Substantially all of the activities of the NFE consist of holding the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution, except that the Entity functions as an investment fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes.
5. The NFE has not yet operated a business within 24 months after the date of its initial organization, and invests capital into assets to operate a business other than that of a Financial Institution.
6. The NFE was not a Financial Institution in the past five years, and is in the process of liquidating or reorganizing.
7. The NFE primarily engages in financing and hedging transactions with, or for, Related Entities, and does not provide financing or hedging services to non-Related Entities, provided that any such Related Entities are primarily engaged in a business other than that of a Financial Institution.
8. A NFE that meets all of the following requirements:
(1) It is established and operated in its country or jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its country or jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labor organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare.
(2) It is exempt from income tax in its country or jurisdiction of residence.
(3) It has no shareholders or members who have a proprietary or beneficial interest in its income or assets.
(4) The applicable laws of the NFE’s country or jurisdiction of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of properties.
(5) The applicable laws of the NFE’s country or jurisdiction of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its remainder of the assets be distributed to a Governmental Entity or other non-profit organization, or escheat to the government at various levels of the NFE’s country or jurisdiction of residence.
The term “Passive NFE” referred to in these Regulations means a NFE other than those described in the preceding paragraph, or an Investment Entity described in subparagraph 2 of Article 8 which is not a Reportable Jurisdiction Financial Institution or a Participating Jurisdiction Financial Institution.
The term “Participating Jurisdiction” referred to in these Regulations means a country or a jurisdiction implementing the automatic exchange of Financial Account information in accordance with the Common Standard on Reporting and Due Diligence for Financial Account Information released by the Organization for Economic Co-operation and Development, and is announced by the Ministry of Finance.