The legislature has approved an amendment to postpone a tax on stock gains targeting stock-market high rollers. The legislature passed the amendment on Friday.
The new law means that investors will need to pay an extra 0.1% transaction tax on trades beyond the NT$1 billion threshold, or a 15% tax on their capital gains. The legislature’s decision means that the new law will take effect in 2018 instead of next month.
Taiwan already imposes a transaction tax of 0.3% on all stock market trades, which is higher than many countries in Asia and Europe. The new tax targeting high rollers has sparked resistance among investors. Major players have been threatening to invest their funds elsewhere to avoid the tax.
But the finance ministry said earlier this week that the current low turnover reflects weak confidence in the market and fears over volatility in global equity markets. It also said it has nothing to do with the tax aimed at traders trading volumes of NT$1 billion and up each year.