New rules of tax treatment imposed on profits gained by individuals' purchase or trading of bonds and rights

State Tax Issue [2005] No. 655

Income generated from purchasing or trading bonds and rights by an individual is subject to Individual Income Tax ("IIT") according to the rule of "Gains from Transfer of Assets".

Proceeds gained from related juridical and administrative processes after acquiring the bonds and rights through tender, auction or other means are subjected to IIT according to "Gains from Transfer of Assets".

Partial trading of bonds and rights should be treated as transfer of assets and is subject to IIT. All processing fees incurred during tender and auction, appeal fees, audit fees as well as other trivial taxes paid during the purchasing and trading process are tax-deductible in calculating IIT.

國稅函[2005]655號文件明確規定個人通過購買債權取得的收入，應按照"財產轉讓所得"專案繳納個人所得稅。

人通過招標、競拍或其他方式購置債權以後，通過相關司法或行政程式主張債權而取得的所得，應按照"財產轉讓所得"專案繳納個人所得稅。

每次處置部分債權的所得，應作為一次財產轉讓所得徵稅。個人購買和處置債權過程中發生的拍賣招標手續費、訴訟費、審計評估費以及繳納的稅金等合理稅費，在計算個人所得稅時允許扣除。