The National Taxation Bureau of the Northern Area, Ministry of Finance, states that, where errors are made in paying securities transaction tax for the private transaction of unlisted stock, such as incorrect filing of information, paying the wrong tax amount, or overpaying tax, the taxpayer may apply to the National Taxation Bureau for correction or a tax refund to protect their rights and interests.

The Bureau explains that, pursuant to Subparagraph 3, Paragraph 1, Article 4 of the Securities Transaction Tax Act, if the securities are transferred directly by the holder to the transferee (i.e., the buyer) without going through a securities broker or the centralized securities exchange market, the buyer of the securities is the securities transaction tax collecting agent, and is responsible for collecting and paying the securities transaction tax in accordance with the law. Accordingly, if there are errors on the tax payment slip, such as the transaction price, total amount, or buyer/seller information, the tax collecting agent, jointly with the securities seller, shall fill out an application form. The application must be submitted along with photocopies of the front and back sides of the national ID cards of both the buyer and seller, the trading contract, proof of payment and receipt of funds, and other supporting documents, along with the original copies of the tax collecting agent’s receipt copy, the seller’s receipt copy, and the record-keeping copy of the Tax Bill of Securities Transaction Tax (492 Tax Bill). In the case that the buyer or seller is a foreigner, a copy of their passport or Alien Resident Certificate (ARC) is required; in the case that the buyer or seller is a profit-seeking enterprise, institution, or organization, a copy of proof of establishment or change of registration is required; in the case that the buyer or seller is a foreign legal entity, a copy of their business registration as well as the letter of proxy and proof of identification of the legal representative are required. The tax collecting agent shall apply for a correction of the tax bill or a tax refund to the National Taxation Bureau with jurisdiction over the tax collecting agent’s address.

The Bureau would like to issue a reminder that, according to Paragraph 2, Article 4 of the Securities Transaction Tax Act, once the securities transferee has legally collected and paid the tax, no application may be submitted to change the tax collecting agent. For private transactions of securities, parties should properly preserve documents such as trading contracts, payment receipts, and tax payment slips, and verify the transaction amount and other relevant information before paying the tax. If there are any questions regarding securities transaction tax, please call the toll-free service hotline at 0800-000321. The Bureau is dedicated to providing consultation services.

〔Contact person:Ms.Tsai, Section Head of Sales Tax Division.;Tel: (03)3396789, ext. 1280〕