Q:
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Which Taiwan securities trading income should be included in the individual’s basic income amount?
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A:
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1.
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For the beneficiary certificate of a private equity investment trust fund, its trading income should be included in the personal basic income.
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2.
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Stock of listed, OTC and emerging companies, as well as the transaction income of public offering securities investment trust funds beneficiary certificates, shall not be included in the personal basic income.
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Q:
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Why does Taiwan include the trading income of private equity investment trust fund to individual’s basic income amount? What is the impact to the securities market?
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A:
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The reasons are as follow:
1.
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The law for set up requirement and scope of investment of private equity investment trust fund is relatively looser than public offering. Also, it can invest on stock by unlisted, non-OTC and non-emerging companies and implement tax planning, therefore, including it in the basic income amount can reduce the situation of tax avoidance.
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2.
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Since stock of listed, OTC and emerging companies and the transaction income of public offering securities investment trust funds beneficiary certificates are not included in the basic income amount, therefore it shall have no impact to the general public investors and securities market.
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Q:
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Which year should the income from beneficiary certificate transactions of Taiwan private equity investment trust funds included in the individual basic income?
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A:
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1.
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If the beneficiary certificate is transferred to another person, the income from the transaction should be included in the year of the transfer date.
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2.
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If the beneficiary certificate was requested redemption of certificates of beneficial interest, it shall be included in the basic income based on the year of the date when the purchase price is calculated as agreed in the contract.
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Q:
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How to calculate the income from beneficiary certificate transactions of Taiwan private equity investment trust funds? Which supporting documents should be attached when applying?
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A:
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1.
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The calculation of the proceeds from the beneficiary certificate transaction of the private equity investment trust fund should be based on the actual transaction price at the time of the transaction, after deducting the original acquisition cost and necessary expenses.
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2.
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When declaring the proceeds from the beneficiary certificate transaction of the private equity investment trust fund, the receipt and payment records, the purchase and sale contract or other documents that fully certify the purchase and sale price shall be attached for the inspection and confirmation of the audit agency.
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FAQ
