What is the tax rate for foreigners who wants to invest in stock market and get profit out of it? Is there any link that gives the specification regarding this?
- no capital gains tax.
- if stock issues cash dividend, then 20% tax deducted from the cash dividend upfront
- if stock issues stock dividend, you pay tax (think 20%) on par value of NT$10 per share.
When you file income taxes in Taiwan the following year, 2) and 3) above are inputted into system.
This from personal experience.
I thought that was only for domestic company listings. And there still might be other tax implications.
That’s why you gotta trade in NTD, homedog.
It’s also why there are ginormous corporate bond offerings denominated in NTD from the likes of Apple.
This is referring to capital gains from real estate, not equities. There is no capital gains tax on equities, domestic or foreign (dividends is a different story, as mentioned by KHHville). This is all assuming that you are a Taiwan tax resident, and that your home country has a tax agreement with Taiwan (the US does not).
There is a good thread on this a few months ago. I’ll see if I can find it.
Does the equation change for foreign student? As i don’t pay tax in taiwan because most of my savings are from scholarship.
How do you do trading in taiwan? Do you use local broker? If yes, then do they have English version. Or do you use local bank?
AFAIK, it is all based on tax residency. Your status as a student, etc., isn’t really relevant. I don’t know your specific situation, or your home country’s tax agreement with Taiwan, so you would need to look into that. Regardless, capital gains from equities is not taxed.
Interactive Brokers is a popular platform. You need to be responsible and proactive with your tax obligations (which are your responsibility to set up properly) with them. I use my home bank in Canada, but my accounts have been set up there a long time, and I am not currently a Taiwan resident.
China Trust and Cathay both have english versions.
I went to the websites of the CTBC bank (China trust) and Cathay United bank, but all of their information about investment are in chinese. I am interested in investing bond market.
The information would be in Chinese, but I believe the app is in English. You can also try Citibank.
Correct me if I am wrong. I was at a Cathay bank and the financial advisor told me all foreign investment or incomes bringing back into Taiwan are exempt of taxation if you can prove it was taxed outside of Taiwan for upto 6,700,000NTD per year and anything exceeding this amount is taxed at 20%.
Is this true?