The transfer of uncertified shares issued by a shareholder of a limited company under Article 162 of the Company Act is a transfer of its capital, which is not a securities transaction and is exempt from the securities transaction tax. The income from the transactions shall be subject to income tax in accordance with “income from property transactions” of Category 7, Paragraph 1, Article 14 and Article 24 of the Income Tax Act.
(Please refer to Tai-Cai-Shui Letter No. 841632176 issued by Ministry of Finance on June 29, 1995)