On 4 October 2011, the Financial Supervisory Commission (FSC) of the Executive Yuan issued a directive (Reference No. Jin-Guan-Zheng-Quan-Zi-1000039960) to revise an interpretation. In this directive, the FSC stated that if the issuer of call (put) warrants ("Issuer"), which is not the issuer of the underlying domestic or overseas securities, chooses cash settlement at the time of exercising the warrants, such settlement should be considered as the holder's sale of the warrants back to the Issuer at the "exercise value of the warrants", and be treated a purchase/sale transaction of "other marketable securities."

On 16 November, 2011, the Ministry of Finance (MOF) issued a directive (Reference No. Tai-Cai-Shui-Zi-10000400260) in response to the above-mentioned FSC directive. In this directive, the MOF stated that if the holder of call (put) warrants exercises the option on a particular date or the date of maturity by cash settlement, such settlement should be deemed as the holder's sale of the warrants back to the issuer of the warrants. The holder should be subject to securities transaction tax at 1‰ of the exercise value of the warrants as sale of other marketable securities approved by the government, pursuant to Item 2, Article 2 of the Securities Transaction Tax Act. Such sale however is exempt from income tax under Article 4-1 of the Income Tax Act.