The Ministry of Labor issued a letter explaining the calculation of the overtime payment to employees who had agreed to work on a flexible rest day but who asked for leave on that day- On February 7, 2017, the Ministry of Labor issued a letter regarding the overtime payment to be paid to an employee who agrees to work on flexible rest day but who asks for leave for a part of that day.  In addition to the one-day salary that shall be paid by the employer according to Article 39 of Labor Standard Act (“LSA”), the overtime payment shall be calculated by the following formula: (the total overtime payment under Article 24 of the LSA assuming the employee did not ask for leave) minus (the overtime payment for the hours that the employee asked for leave based on the type of the leave).  The payment to be deducted shall be calculated in accordance with the overtime payment on flexible rest days.

Companies listed on the TSEC / OTC shall list electronic transmission as one of the methods for exercising voting rights when convening a shareholders’ meeting — The FSC issued a ruling on January 18, 2017, stating that all TSEC/OTC-listed companies shall list electronic transmission as one of the methods for exercising voting rights, in accordance with Paragraph 1, Article 177-1 of the Company Act.  This requirement is no longer limited to those listed companies with paid-up capital of more than NT$2 billion and with over 10,000 shareholders as recorded in the shareholder register as of the last date on which share transfers were suspended.

Judicial Yuan Interpretation No. 745: The Income Tax Act’s different treatment of income from professional practice and income from salaries and wages is without justification, and thus the relevant provisions are declared to be in violation of the Constitution.  The Justices of the Constitutional Court issued Judicial Yuan Interpretation No. 745, holding that: under the Income Tax Act, in the calculation of income earned from professional practice, necessary expenditure and expenses (e.g. rent for or depreciation of the place of business, depreciation of and repairing expenses for the facilities and equipment required for business) may be deducted.  In contrast, when calculating income from salaries and wages, a taxpayers is only allowed to deduct a fixed statutory amount, and cannot deduct a greater amount by itemizing such expenses.  Therefore, Judicial Yuan Interpretation No. 745 holds that the Income Tax Act’s different treament of income from professional practice and income from salaries and wages is without justification, and the relevant provisions are incompatible with the principle of equality under the Constitution.  The competent authority is thus asked to revise the relevant provisions within two years.