Securities trade tax to be exempted 7 more years

Investors in corporate bonds and banking debentures have been exempted from securities trading taxes since Jan. 31, 2002, in accordance with an additional rule, Article 20-1, which was incorporated into the statute for promoting industrial upgrading. The tax exemption was designed to facilitate the issuance of corporate bonds to help domestic enterprises raise funds and boost their international competitiveness.

The industrial upgrade statute will expire at the end of the year, and securities trading taxes, set at 0.1 percent of the value of each transaction, is supposed to be resumed on investors in corporate bonds and banking debentures.

But Finance Minister Lee Shu-der told the finance committee members that domestic economy has yet to recover fully one year after the global financial tsunami broke out in September 2008.

Accordingly, in order to further liven up the nation's bond markets, it's necessary to keep exempting investors in corporate bonds and banking debentures from securities trading tax for a certain period of time, Lee explained.

The revisions to the Securities Trading Tax Statute will have to pass the third reading by the Legislative Yuan to become valid.

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