Local brokerage houses may not have enough time to upgrade their systems to help the Ministry of Finance levy the capital gains tax on securities investments on Jan. 1, a brokerage house official said yesterday.
The government is to launch the capital gains tax on securities transactions from Jan. 1 next year, with individual investors set to pay a capital gains tax of between 0.02 and 0.06 percent on stock trade if the TAIEX hits 8,500 or higher next year and in 2014.
However, various brokerage houses — intending to help the government collect the tax — may not be able to upgrade their systems by the end of this year.
“Under an internal survey, only 34 local brokerage houses [among a total of 80] can have their systems ready in time,” Water Tsai (蔡秀芬), a member of Taiwan Securities Association’s (TSA, 證券公會) electronic operation committee, told reporters after attending a ministry-held press conference.
Since the ministry will fine the brokerage houses for failing to help levy the tax from Jan. 1, securities companies may even have to hope the TAIEX does not reach 8,500 too early, Tsai added.
However, Minister of Finance Chang Sheng-ford (張盛和) said he believes all brokerage houses will have enough time to upgrade their systems.