Taiwan Cabinet Approves Capital Gains Tax Plan From 2013

Taiwan’s Cabinet approved a proposal by the finance ministry to levy a capital-gains tax on securities transactions from next year.

Taiwan will levy a 15 percent to 20 percent tax on individual investors who earn more than NT$4 million annually from stock trades, the Cabinet said in a statement today. Individuals won’t be taxed on gains made from futures trade, the statement said.

Investors holding stocks for 3 years and more will be taxed based on 50 percent of their gains, Finance Minister Christina Liu said at a briefing in Taipei today. Local institutional investors who earn in excess of NT$500,000 will face a 12 percent to 15 percent tax, while overseas investors without offices and direct business operations in Taiwan will be exempt, she said.

The government will retain an existing securities transaction tax of 0.3 percent, Kuan chung-ming, Minister without Portfolio said. The plan will be submitted to Legislature for approval.

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net

To contact the editor responsible for this story: Janet Ong at jong3@bloomberg.net

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