Newsletter
MULTIPLE RATES OF FUTURES TRANSACTION TAX
On 19 October 2001 the National Tax Admini-stration of Taipei (NTAT) issued a press release to remind taxpayers that after trading in stock index futures options and stock options began on 22 October, it is subject to a different rate of fu-tures transaction tax than that levided on trading in the stock index futures.
Article 2 of the Statute for Futures Transaction Tax sets a minimum tax rate of 0.025% for trades in stock index futures, and a maximum rate of 0.15%; while for stock index futures options and stock options, it prescribes a range of rates from 0.125% to 0.75%. The actual rates are set by the Ministry of Finance (MOF), subject to approval by the Executive Yuan.
The current rate of futures transaction tax for stock index futures options and stock options is 0.125%—much higher than the rate of 0.025% for stock index futures. The party under a duty to collect the tax should do so accordingly, because in the case of underpayment or non-payment such collection agent is liable to pay the tax to-gether with a fine of 10 to 30 times the amount of tax in question.