Taiwan’s Kaohsiung National Taxation Bureau has reminded investors that sales of certain unlisted company shares are subject to a 3% securities transaction tax, while other share transfers fall outside the tax scope depending on how the shares were issued.
Taiwan’s Kaohsiung National Taxation Bureau has reminded investors that securities transaction tax may apply to the sale of shares in unlisted companies, depending on how the shares were issued.
Under the Securities Transaction Tax Act, shares issued by a company limited by shares that have been certified by a bank under Article 162 of the Company Act, or uncertificated shares registered with a securities central depositary enterprise under Article 161-2, are treated as securities. Their sale is subject to a securities transaction tax at 3%.
Shares that have not been bank-certified, shares for which certificates have not been issued, and capital contributions in a company limited by shares are not treated as securities and are therefore outside the scope of the tax.
The bureau advised holders of unlisted shares to check with the issuing company whether the shares were issued under Article 161-2 or Article 162 of the Company Act. Those who have failed to pay tax may voluntarily file and pay the tax and interest before being reported or investigated, potentially avoiding penalties under Article 48-1 of the Tax Collection Act.
This announcement was made on 7 September 2026.
