Overview of Foreign Judgment Enforcement in Taiwan

In an increasingly globalized world, businesses and individuals often engage in cross-border transactions, sometimes resulting in disputes that lead to legal judgments. When a judgment is issued in one country, enforcing it in another can be complex, as each jurisdiction has its own legal framework and rules governing foreign judgments. As Taiwan plays a dynamic and pivotal role in the Asia-Pacific region, enforcing foreign judgments has become a critical issue for businesses and individuals dealing with Taiwanese entities.


For foreign companies or individuals (excluding those from China) holding a favorable judgment from a court outside Taiwan, understanding the procedures and criteria for enforcement within Taiwan is essential. This process is particularly relevant for those engaged in commercial activities with Taiwanese entities, where disputes over contracts, intellectual property rights, or financial obligations may arise.

This article provides an overview of the legal framework governing the enforcement of foreign judgments in Taiwan. Please note that judgments from China are subject to a separate legal framework, so the rules outlined here may not apply to them. However, these rules may apply mutatis mutandis to judgments from Hong Kong and Macao. By understanding Taiwan’s enforcement mechanisms, foreign parties can more effectively navigate potential challenges and achieve legal finality within Taiwan’s judicial system.

 

1. General Framework

Under Taiwan’s legal framework, foreign civil judgments are recognized automatically unless a Taiwanese court finds that they do not satisfy the specific requirements outlined in Section 3 below. These requirements are only assessed if the creditor initiates legal action in Taiwan, requesting judicial recognition of the foreign judgment to confirm its eligibility for compulsory enforcement.
 
After the Taiwanese court issues a judgment affirming the enforceability of the foreign judgment, the creditor may proceed to petition the court to initiate compulsory enforcement of that judgment.
 

2. Eligibility for Recognition and Enforcement of Foreign Judgments in Taiwan

For a foreign judgment to be eligible for recognition and enforcement, it must meet the following criteria:

1. it must represent a final and conclusive decision issued by a court that resolves the relevant civil dispute; and
2. it must not involve criminal, public, or administrative matters.

 

3. Requirements for Recognition of a Foreign Judgment in Taiwan

1. Formal Requirements:

1. The petitioner must initiate a civil action in a Taiwanese court to affirm the enforceability of the foreign judgment within the jurisdiction where the debtor’s domicile or attachable property is located.
2. The petitioner must be the plaintiff (creditor) who prevailed in the foreign civil judgment and is seeking enforcement in Taiwan, while the respondent (debtor) must be the defendant in the foreign civil judgment.
3. The foreign civil judgment must be duly legalized and translated into Traditional Chinese, with the translation included as an attachment to the petition.

 

2. Substantial Requirements:

A Taiwanese court will apply the following criteria in reviewing a foreign judgment without re-examining its merits:

1. The foreign court that rendered the judgment must possess competent jurisdiction over the subject matter in accordance with Taiwanese law.
2. In the case of a default judgment issued against the debtor by the foreign court, notice or summons regarding the initiation of action must have been legally served within a reasonable timeframe in that foreign country, or alternatively, it must have been served through judicial assistance as stipulated under Taiwanese law.
3. The foreign judgment and the procedures leading to that judgment must not contravene Taiwan's public order or morals.
4. There must be mutual recognition of civil judgments between the foreign country and Taiwan, or the courts in the jurisdiction where the foreign civil judgment was rendered must not expressly refuse to recognize the validity of judgments issued by Taiwanese courts (as established in Supreme Court judgment 110 TaiShang 412).