Taiwan Securities Association Urges Extension of Bond ETF, Day-Trading Tax Breaks

Taiwan waives securities transaction tax on corporate bonds, financial bonds and bond ETFs to support market liquidity and corporate fundraising. It also taxes eligible stock day-trade sales at 0.15%, half the standard 0.3% rate. The incentives have become important features of Taiwan’s capital-market framework, and their expiry could raise trading costs and create uncertainty for investors and securities firms.

Taiwan Securities Association Chairman Chun-Hong Chen called on the government on July 22 to begin amending the Securities Transaction Tax Act, speaking at the association’s 70th-anniversary meeting. The bond-related exemptions expire on Dec. 31, 2026, while the day-trading concession runs through Dec. 31, 2027. Financial Supervisory Commission Chairman Thomas Kung said the regulator would assess changes to Taiwan’s trading system with an open but cautious approach while advancing the Asian Asset Management Center initiative.