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. 30% withholding tax for individuals

25% withholding tax for corporate beneficiary

20% withholding tax for obtained approval in accordance with the Statute for Investment by Overseas Chinese or the Statute for Investment by Foreign Nationals
Capital Gains Tax
Income tax on gains derived from the securities transactions was imposed with effect from January 1, 2013, except Foreign Institutional Investor (FINI). For details, please refer to Ministry of Finance, R.O.C. “Income Tax Act” Article 14-2( http://law.moj.gov.tw/Eng/LawClass/LawContent.aspx?PCODE=G0340003 ).
 
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