Market Taxation Guide - Taiwan

04.03.2015

This Market Taxation Guide (Taiwan) provides the following details:

  • Reference information about all taxes applied at source, through Clearstream Banking and its local depositories, to securities deposited in Clearstream Banking; and
  • Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.

New and improved tax information and procedures that become available will be included on an ongoing basis.

Important note:

This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.

Types of securities eligible in Clearstream Banking

The Clearstream eligible securities issued in Taiwan are as follows:

Taiwan Depository & Clearing Corporation (TDCC)-eligible international bonds (also known as Foreign Currency Denominated Bonds) (e.g. Formosa Bonds) denominated in:

  • Australian Dollar (AUD);
  • Japanese Yen (JPY);
  • Chinese Yuan (CNY);
  • U.S. Dollar (USD).

Withholding tax

The standard rate of 15% non-resident withholding tax is applied on interest from Taiwanese Foreign Currency Denominated Debt securities in Clearstream Banking. Please refer to the Taxation section of the Market Profile for further information.

Foreign Currency Denominated Debt securities

Holding
restriction

Withholding
tax rate

Relief
at source

Quick
refund

Standard
refund

No

15%

Clearstream Banking does not provide tax Relief at source, Quick or Standard refund services for the Taiwanese market.

No

No

No

Customers will be taxed at a maximum non-resident rate of 15% on income payments from Foreign Currency Denominated Debt securities. Customers are advised to engage a local tax agent for all tax related matters according to market practice.

Capital gains tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.