Gains tax may exclude foreign investors: Liu
By Camaron Kao,The China Post
April 6, 2012, 12:14 am TWN
Ministry of Finance (MOF) Minister Christina Liu (劉憶如) said that the consensus of yesterday's tax reform committee's meeting is that foreign institutional investors will be exempt from any capital gains tax in the stock market.
Meetings of the tax reform committee concerning the stock market will be over by next week, and the Ministry of Finance (MOF) will start to integrate different ideas from these meetings, stated Liu.
Liu did not state clearly how long the MOF needs to integrate these ideas, but she did voice her willingness to complete the process in less than one month.
"These meetings are basically for the MOF to hear different voices," stated Liu. "The MOF's proposal will be based on the consensus of these meetings," she said.
Some members of the tax reform committee have already voiced their inclination to collect taxes from corporate investors, or investors profiting more than NT$6 million (US$200,000) in the stock market, leaving smaller individual investors in the stock market untaxed.
Liu, however, still refuses to make any comment about the meetings to avoid any speculation.
She reiterated that the MOF will submit its draft of tax reform related to the stock market no later than the end of April.
Investors will be Invited to the Next Meeting
The MOF will invite investors from abroad and members of the tax reform committee to the next meeting, which is scheduled for next Monday, said Liu.
The meeting is expected to be very different from previous sessions, she said. Meetings conducted until yesterday were attended by scholars.
Famous individual investors in Taiwan like Lai Sian-jheng (賴憲政) and A-tu-bo (阿土柏) are among those who will attend, according to Liu.
Market Drops Due to Global Financial Turmoil: Liu
"Since the stock market in Taiwan was closed yesterday, it will need to respond to the global decline today," Liu stated.
When asked to comment about the decline of the Taiwan stock market yesterday, Liu stated that Asian markets were down in reaction to the fall of the U.S. stock market. The European stock markets were also down, said Liu. Thus, the huge decline yesterday is still understandable, she said.