Amendments to the Income Tax Act passed third reading June 25 in the ROC Legislature, clearing the way for reintroduction of a securities gains levy.
“The revisions ensure tax fairness and can improve economic efficiency,” an ROC Ministry of Finance official said. “They should also be able to help restore stock market momentum and increase overall tax revenue.”
Under the legislation, the stipulation requiring investors pay tax when the Taiwan Capitalization Weighted Stock Index climbs above 8,500 points has been canceled.
Starting 2015, investor share transactions exceeding NT$1 billion (US$33 million) per year will be subject to a 0.1 percent tax. The levy, which is to be calculated by the MOF, can be challenged by investors.
In addition, Article 14 of the act will remain unchanged, the official said. This stipulates that those who sell over 100,000 unlisted shares or shares in emerging markets; individuals who acquired shares of initial public offerings; and investors who are non-ROC residents will be levied securities gains tax in accordance with the tax rate of 15 percent beginning 2013.
The MOF will fast-track efforts in revising relevant regulations, such as loss audits, so as to ensure the securities gains tax is implemented smoothly, the official said. (KML-JSM)
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