Taiwan’s Southern Area National Taxation Bureau has reminded individuals that gains from trading unlisted stocks must be reported as basic income for tax purposes, while highlighting the conditions for exemption and procedures for voluntary supplementary filing.
Taiwan’s Southern Area National Taxation Bureau of the Ministry of Finance stated that when an individual trades shares, new share entitlement certificates, share payment certificates, or certificates representing rights issued or privately placed by a company that is not listed on a stock exchange or traded at a securities dealer’s business premises, the resulting gains must be included in the individual’s basic income for tax purposes.
However, if the issuing or privately placing company is a domestic high-risk start-up enterprise approved by the central competent authority for the relevant industry, and the company has been established for less than five years at the time of the transaction, the gains from trading its shares are exempt from inclusion in the individual’s basic income.
The Bureau explained that income from trading unlisted stocks should be calculated by deducting the original acquisition cost and necessary expenses (including the Securities Transaction Tax and transaction fees) from the transaction price at the time of sale.
When filing the annual individual income tax return, taxpayers must complete the Individual Basic Income Tax Return and attach supporting documents such as sale and purchase agreements, Securities Transaction Tax payment receipts, payment records, or other relevant evidence for verification by the tax authority.
The Bureau reminded taxpayers that the filing period for the 2025 (ROC Year 114) annual individual income tax return ended on 1 June 2026 (ROC Year 115). Taxpayers who discover that they failed to report gains from transactions involving unlisted stocks should promptly make a voluntary supplementary filing and pay the outstanding tax, together with applicable interest, to the tax authority with jurisdiction over their registered domicile in order to avoid penalties.
This announcement was made on 23 July 2026.
