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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/9/2012

Taiwan - New rules for taxation of capital gains 

August 9:   New rules concerning the taxation of capital gains realized with respect to the sale of securities or futures trades will be effective 1 January 2013.
  • For companies, capital gains derived from the sale of securities or futures trades will remain a taxable item under the alternative minimum tax (AMT) regime. The AMT rate for these gains will range between 12% to 15%, and there is a deductible amount of NT$500,000 (approximately U.S. $16,700) allowed for the AMT calculation. If the shares are held for three years or longer, only 50% of the amount of capital gains will be subject to tax. Profit-seeking enterprises that have a fixed place of business (or business agent) in Taiwan will be subject to the new capital gains tax rules.
  • For individuals, capital gains realized on the sale of stock will no longer be captured under the AMT system, but will be subject to regular individual income tax and reported on the individual income tax return. The new capital gains tax rules will apply to Taiwan resident individuals and non-resident individuals, and provide that the capital gains tax will be withheld by the securities broker at a rate of 0.06% (based on the quoted price on the stock market index as of the date of the sale). There are separate rules for determining the capital gains tax for shares sold in 2013-2014 and for shares sold in 2015 and later years.

Taiwan’s president on 8 August 2012 announced the new rules for capital gains tax on securities trades, with the passage of the legislation following the third reading before the Legislative Yuan, as well as amendments to the Taiwan’s income tax laws.


Read an August 2012 report [PDF 87 KB] prepared by the KPMG member firm in Taiwan: The New Version of Capital Gains Tax



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