Stocks gains tax to be abolished next year
Date:2015-11-17 Read
The legislature has abolished the controversial stocks gains tax after it was put to a vote. Under a revision to the income tax law, the new measure will come into effect on January 1st next year. The stocks gains tax was in place for two years and has been revised four times since 2012. The legislature’s decision to strike down the tax has won support from both the ruling and opposition parties. Ruling KMT lawmaker Lo Ming-tsai said on Tuesday that the decision was made for the sake of Taiwan’s economic future and on the basis of the principles of “ability to pay” and “tax withheld at source.” He said the stocks gains tax has destabilized Taiwan’s stock market. “After the decision was made today, all well-heeled stock investors, including foreign investment, are welcome to invest in Taiwan and speed up Taiwan’s economic development. When the revision goes into effect, hopefully shares will rise to the 10,000 point mark and the public will have a better life like before,” said Lo. Financial Supervisory Commission (FSC) Chairman William Tseng said the abolition will add momentum to the stock market at the end of this year. Resource : RTI (Radio Taiwan International) http://english.rti.org.tw/news/?recordId=36947
Taiwan, China sign taxation, flight safety pacts
Date:2015-08-26 Read
Fuzhou, China, Aug. 25 (CNA) Taiwan and China signed two agreements on double taxation avoidance and aviation safety in the southeastern Chinese city of Fuzhou on Tuesday. The agreements were signed by Lin Join-sane (林中森), chairman of Taiwan's Straits Exchange Foundation, and Chen Deming (陳德銘), president of China's Association for Relations Across the Taiwan Straits, on behalf of their respective governments. The double taxation avoidance agreement is the 29th to be signed by Taiwan and the 103th to be signed by China. Under the agreement, any businesses whose places of effective management are in Taiwan will be protected, including those who invest in China via a third territory. The agreement is based on the principle of non-retroactivity and non-applicability to criminal matters, which is aimed at protecting Taiwanese businesses that might face criminal prosecution in China for tax evasion. According to officials from Taiwan's Ministry of Finance, the agreement will not only reduce the tax burden on Taiwanese companies but will also attract foreign companies to set up operations in Taiwan and access the Chinese market. The agreement allows foreign companies that have set up subsidiaries in Taiwan to access the Chinese market directly, the officials said, adding that new foreign companies that meet the relevant criteria are also covered by the agreement. The flight safety agreement, meanwhile, allows Taiwanese and Chinese air carriers operating cross-Taiwan Strait routes to appoint local maintenance plants to provide safety inspections, maintenance services and airworthiness inspections. This will reduce the chance of flight delays and decrease operating costs. Also, the air carriers are allowed to use locally available parts for maintenance purposes, which will help reduce waiting time. (By Zep Hu and Y.F. Low) Resource : The Central News Agency http://focustaiwan.tw/news/acs/201508250024.aspx
Daily pricing limit of shares
Date:2015-04-01 Read
Financial Supervisory Commission, Taiwan had approved related governing rules and regulations proposed by TWSE, Taipei Exchange (formally known as OTC market) and Taiwan Futures Exchange on 31st March, 2015 and declared the daily pricing limit of shares will be up to 10% from 7% effective on 1st June, 2015. Supporting measures : 1) The daily pricing limit of TDR/ call (put) warrants/ beneficiary certificates and other related products are also adjusted to 10%. 2) The daily pricing limit of Stock index futures/ Options/ Stock futures are also adjusted to 10%. 3) The whole pecuniary financing margin ratio of each investor will be up to 130% from the current 120%. This pro forma calculation for margin ratio will be implemented effective on 5th April, 2015 but isn't not compulsory until 1st June, 2015. Resources : Securities and Futures Bureau, Financial Supervisory Commission, R.O.C.