On 22 November 2018, the Taiwanese Ministry of Finance (the MoF) published a draft amendment to the Futures Transaction Tax Act, which further extends the 0.002% futures transaction tax rate on the transaction price of the contract in stock index futures contracts. The current 0.002% rate, a reduction from 0.004%, was implemented in 2013, on futures transactions in stock index futures contracts, with the sunset clause to expire on 31 December 2018.
However, given that the expiration of the preferential transaction tax rate will negatively affect futures market investments, the Mof released the draft amendment that extends the current 0.002% tax rate to be applicable to transactions entered into on or after 1 January 2019. The draft will become effective only after it is passed by Taiwan’s Executive Yuan.
EYG no. 012321-18Gbl
DID YOU LIKE THIS ARTICLE?
Subscribe to the Tax Insights newsletter for the latest thinking in tax.