Taiwan Capital Gains Tax Guide
Taiwan does not tax capital gains on securities for individual investors — a securities transaction tax (證交稅 0.3% on stocks, 0.1% on ETFs) is paid instead. For property, the system is split: properties acquired before 2016 are taxed under the old system (15–45% on gains), while those acquired after 2016 have gains included in ordinary IIT (5–40%) with progressive holding-period adjustments. All amounts in TWD.
Taiwan's approach to capital gains is unique — securities gains are explicitly exempt from income tax (abolished in 1990, with brief reinstatement attempts) and replaced by a low-rate transaction tax at the point of sale. For property, a major 2016 reform brought real estate gains into the income tax net. For related guidance, see our Property Tax Guide →, Personal Tax Guide →, and Investment Income Guide →.
Securities Gains — Tax-Free for Individuals
- No capital gains tax on securities: Individual investors do not pay income tax on gains from the sale of listed stocks, ETFs, warrants, and other securities traded on the Taiwan Stock Exchange (TWSE) or Taipei Exchange (TPEx). This exemption has been in place since the securities transaction tax replaced the capital gains tax in 1990.
- Securities Transaction Tax (證交稅): Instead of capital gains tax, a 0.3% securities transaction tax (STT) is levied on the sale value of stocks. For ETFs, the rate is 0.1%. For corporate bonds and financial bonds, the STT is 0.1% (currently suspended for certain instruments). This is paid by the seller at the time of trade and is not deductible against income.
- 2026 reinstatement debate: As of 2026, there is ongoing policy discussion about partially reinstating a capital gains tax on high-frequency or large-volume securities trades to curb speculative activity. No legislation has been passed — the STT regime remains in effect.
- Institutional investors: Banks, insurance companies, and securities firms include securities gains in their taxable business income (subject to corporate tax at 20%). Brokerage firms pay the STT as business cost.
- Unlisted shares: Gains from the sale of unlisted shares (non-TWSE/TPEx) are subject to minimum tax (AMT) at 12% for individuals if total AMT income exceeds TWD 6.7 million.
Property Capital Gains — Post-2016 System (IIT Inclusion)
- Properties acquired after 1 January 2016: Gains from the sale of real estate are included in ordinary IIT as taxable income (房地合一稅). The gain is calculated as sale price minus purchase price, acquisition costs, and improvement expenses.
- Progressive rates based on holding period:
- Held less than 2 years: 45% of the gain
- Held 2–5 years: 35% of the gain
- Held 5–10 years: 20% of the gain
- Held over 10 years: 15% of the gain
- These rates apply to the gross gain (not net taxable income in the ordinary bracket sense) — effectively a separate schedule within the IIT system. Losses on post-2016 property can be carried forward for 3 years to offset future property gains.
Property Capital Gains — Pre-2016 System (Old System)
- Properties acquired before 1 January 2016: Gains are split — the land portion is subject to Land Value Increment Tax (土地增值稅) at progressive rates of 20–40% (see Property Tax Guide), while the building portion is included in ordinary IIT.
- The building gain is calculated as sale price (building portion) minus cost basis and depreciation. This net gain is added to the taxpayer's other IIT income and taxed at the marginal bracket (5–40%).
- For pre-2016 property, the Land Value Increment Tax paid on the land portion is deductible against the building gain for IIT purposes.
Crypto and Other Asset Gains
- Cryptocurrency: Gains from crypto trading are generally treated as taxable property income under IIT. If crypto is held as an investment by an individual and traded frequently, gains are reported as income. Professional traders may be classified as business income.
- Other assets: Gains on precious metals, art, and collectibles are subject to IIT at marginal rates. There is no special capital gains regime for these assets — they are treated as miscellaneous income.