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Guide to Taiwan Futures Transaction Tax

2023-07-06
1. Tax Base
  Trading of futures in the Taiwan Futures Exchange within the territory of Taiwan is subject to the futures transaction tax.

2. Taxpayer
 

The taxpayer of futures transaction tax shall be the sellers and buyers of the futures and the futures commission merchant is responsible for collecting the tax. Futures transaction tax is collected by the futures commission merchant (FCM) on the date of the transaction at the rate specified, and the tax must be paid to the national treasury on the following day.


3. Tax Base
Futures Transaction Tax is borne by both the buyers and sellers and is collected and paid by the futures dealer.
Currently listed futures subject to futures transaction tax include stock price futures contracts, interest rate futures contract, option contracts or futures option contracts, exchange rate futures contracts, etc. The futures transaction tax refers to the settlement of the difference in cash between the buyer and the seller before or when the contract expires, and the market price of the settlement shall be levied in accordance with the following provisions:

Stock Futures

Tax Rate of the Futures Transaction Tax

Stock index futures contracts

0.00002% per transaction, based on the value of the futures contract

30 days commercial paper interest rate futures contracts

0.0000125% per transaction, based on the value of the futures contract

Taiwan Government 10 years debts futures contracts

0.000125% per transaction, based on the value of the futures contract

Option contracts and futures options contracts

0.1% of premium paid per transaction。

Other futures contracts

Gold futures contracts, 0.00025% per transaction, based on the transaction amount

Exchange rate futures contracts

0.0001% per each exchange rate futures contracts transaction

Crude oil futures contracts

0.0005% based on the contract amount per transaction


The futures transaction tax is levied by the futures dealer on the day of the transaction, according to the specified tax rate to collect from the seller and buyer, and on the next day of the levy, fill out the “annual futures transaction tax payment bill” and pay the bill on behalf at the bank. The futures dealer should also list the name, address, name of futures, quantity, amount and tax amount of the daily futures transaction on a list, record or media information, and declare it to the taxation authority under its jurisdiction before 5th of the following month.

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

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