The Kaohsiung National Tax Administration, Ministry of Finance stated that the securities transaction income from the sale of stocks, certificates of entitlement to new shares, certificates of payment for shares, rights certificates, etc., issued or privately placed by companies not listed in the stock exchange or traded on over-the counter markets are subject to personal basic income taxation; when filing income tax returns in May, taxpayers shall file the "Individual Income Basic Tax Return". However, if the issuing or private placement company is a high-risk innovative startups and incorporated approved by the central authority in charge of relevant enterprises, and for less than five years, the income derived from transactions of the securities are exempt from income basic tax.
The Bureau further stated that the transaction income shall be reported as the balance of the actual transaction price at the time of the transaction deducting the original costs and expenses; when buying and selling unlisted stocks, people shall remember to keep records of receipts and payments, tax bills for securities transaction tax, purchase and sale agreements, or other supporting documents for the purpose of calculations for filing and presenting to the National Taxation Bureau for assessment. In particular, the Bureau reminded taxpayers that the aforementioned taxation provisions came into effect on January 1, 2021, and that they shall include transaction income from trading unlisted stocks in their individual income basic calculations when filing their individual income tax returns in May 2022 to avoid tax deficiencies and penalties.
Contact: Ms. Huang, Revenue Officer of the Second Examination Division
TEL: 07-7256600 #7259