The Legislative Yuan will pass the "Amendment to Some Articles of the Securities Transaction Tax Regulations" for the third reading today, reducing the tax rate on warrants, hedge stocks and securities transactions from the current 3 per thousand to 1 per thousand.

(Photo by reporter Liao Zhenhui)

[Reporter Wang Qianhao/Taipei Report] The Legislative Yuan will pass the "Amendment to Some Articles of the Securities Transaction Tax Regulations" for the third reading today. The period is 5 years, and the authorization sub-law is added to standardize the control and supervision mechanism of the warrant hedging special account.

In order to reduce the hedging cost of warrants, improve the quality of warrant quotations, and activate the warrant market, the Executive Yuan will pass the "Draft Amendment to Some Provisions of the Securities Transaction Tax Regulations" prepared by the Ministry of Finance on December 8, 2022, and submit it to the Legislative Yuan for deliberation.

The Finance Committee of the Legislative Yuan completed the trial on April 10, and the Legislative Yuan will not need to negotiate with the party group before discussing it, and it was passed in the third reading today.

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During the period from the listing or OTC listing date to the expiry date of the warrants revised in the third reading article, based on the performance of the quotation responsibility regulations and the purpose of risk management, within 5 years from the effective date of this article, sell warrants in the special account approved by the competent authority of the target industry. For the part of the target stock whose total daily trading turnover is within the necessary range for hedging, the securities transaction tax rate will be lowered from the current 3 per thousand to 1 per thousand. Scope and other related matters to formulate sub-regulations.

The Executive Yuan’s proposal stated that in response to the adjustment of the securities transaction tax rate for warrants and hedging stocks, it is necessary to consult with the Financial Regulatory Commission to formulate relevant sub-regulations, and securities firms and taxation agencies must also cooperate in revising relevant operating systems.

Therefore, the amendment of the third reading article will be implemented six months after the amendment is announced.

Minister of Finance Zhuang Cuiyun said when explaining the expected benefits to the Finance Committee that the quality of warrant market making will be improved, a favorable investment environment will be created, the liquidity of warrants will be enhanced, and transactions in the equity market will be revitalized.

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