萬國法律事務所

The Nationalist Party’s (KMT) 2016 R.O.C. presidential candidate Hung Hsiu-Chu recently proposed new tax regulations governing securities transactions. Hung stated that the current securities transaction tax, which is 0.3% of the value traded levied from the seller, should be divided into a securities transaction tax of 0.25% and a securities transaction income tax of 0.5%. Hung’s proposal also calls for the tax levied on IPOs (initial public offerings) to be abolished, and states that foreign investors not be exempted from the securities transaction income tax.

According to Financial Supervisory Commission Chairman, Tseng Ming Chung, Hung’s proposal, if implemented, could attract investors back to the stock market, which in turn could increase the trading volume by 10%. Moreover, initial public offerings in Taiwan are also expected to increase after the tax levied on IPOs is cancelled, which increase will be beneficial to Taiwan’s capital market.

The KMT also supports Hung’s Proposal. The head of the KMT policy committee, Lai Shi-pao, said that the committee will send this proposal to Legislative Yuan and advocate passage of this new regulation. Lin Chun, the head of the Democratic Progressive Party (DPP) think tank, indicated that Hung’s proposal, if implemented, will reduce the tax revenues of Taiwan, which is contradicts the goal of the current securities transaction income tax that President Ma pushed.