The Government amendment to the Income Tax Act on 26 June 2013, which would drop the plan for an 8,500-point TAIEX threshold that automatically triggers the capital gains tax for individual investors, a move expected to boost the stock market.
Under the modification, individual investors who sell NT$1 billion (US$33.3 million) in shares within the calendar year will be subject to either a 15 % tax on their capital gains, or a 0.1 % tax rate on their stock trades that exceed NT$1 billion, which will be effective from 2015.
In certain categories individual investors will be required to pay a 15 % tax based on actual gains. These include people who sell more than 10,000 shares from IPOs; those who sell more than 100,000 shares in emerging markets; those who sell unlisted companies; and those residing in Taiwan for less than 183 days a year.
