Transaction Costs and Taxes

Commission Rate
Securities firms can set up their own commission schedule according to their strategy. For customers charged with rate higher than the 0.1425% standard rate, the securities firm must take appropriate means to notify them of such before order placement. For foreigners and overseas Chinese, the notification can take place before settlement/delivery.
Securities Transaction Tax
Type of Product Tax Rate
Stocks/Certificate of Entitlement to New Share from Convertible Bond/ Preferred Shares with Warrants 0.3% of the value traded is levied from the seller.
The Securities transaction tax on stock day trading has been cut from 0.3% to 0.15% for one year since April 28, 2017.
Beneficiary Certificates /ETF/Warrants / TDRs/Company Warrants 0.1% of the value traded is levied from the seller.
Bonds/Corporate Bonds/REITs/ Bond with Warrants Tax exempted
Taxation on Dividends
Resident Beneficiary Non-resident Beneficiary
Dividends are included in the consolidated income. 21% (JAN 1,2018).
Capital Gains Tax
Income tax on gains derived from the securities transactions ceased to be imposed.
 
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