Financial Services Roundtable Proposes 9 Recommendations Again, Calls for Re-evaluation of Financial Business Tax Rate
The Taiwan Financial Services Roundtable has put forward 9 policy recommendations through its latest special publication, urging a re-evaluation of the financial business tax rate and its utilization, amendments to the principles for attributing income and expenses for financial holding companies, and improvement of tax regulations for successive beneficiaries to promote family trusts. These aim to enhance the financial industry's international competitiveness and promote economic growth.
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- 📰 Published: May 1, 2026 at 13:11
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Central News Agency
(Central News Agency reporter Lu Yen-Tzu, Taipei, 1st) The Financial Services Roundtable, through its latest special publication, put forward 9 policy recommendations, calling for a re-evaluation of the financial business tax rate and how its revenue is used, amendments to the principles for attributing income, costs, and expenses for financial holding companies, and improvement of tax regulations for successive beneficiaries to promote the development of family trusts, among others. It hopes that relevant competent authorities will continue to review and pay attention to these issues and incorporate them into future policy plans.
The Taiwan Financial Services Roundtable yesterday issued its "20th Anniversary Commemorative Special Publication," which fully records policy recommendations from its establishment on May 25, 2005, until 2025 regarding white papers on financial recommendations. Among these, 9 items have been repeatedly proposed and listed as issues for continuous evaluation or timely promotion.
First, the Financial Services Roundtable stated that the Ministry of Finance restored the business tax rate for the banking and insurance industries from 2% to 5% in 2014. Of this, 3% is allocated to the national treasury, and 2% is allocated to a special reserve for the financial industry as stipulated by the Business Tax Act. Subsequently, there have been recommendations that the 5% business tax rate should not be applied for too long to ensure the international competitiveness of the banking and insurance industries. However, after evaluation, the Ministry of Finance still maintained the 5% business tax.
The Financial Services Roundtable explained that the domestic financial service industry's overall income tax burden has significantly increased due to the higher tax rate under the Income Basic Tax Act, and unlike other industries, it cannot apply various investment tax credits and preferential tax measures. If the financial business tax rate could be re-examined and lowered, it would contribute to the upgrading of the financial service industry and its related industries.
Second, regarding the amendment of the principles for attributing income, costs, and expenses for financial holding companies, the Financial Services Roundtable explained that current tax collection practices still require financial holding companies to negotiate with tax authorities regarding operating expenses and interest expenses that cannot be clearly attributed. This has not kept pace with the substantial operating activities of financial holding companies and changes in regulations and the operating environment. It hopes that the Ministry of Finance will re-examine the attribution and allocation of costs and expense items to rectify the discrepancy between financial holding company laws and actual operations.
Third, to promote the development of family trusts, the Financial Services Roundtable stated that family trusts are essentially intergenerational asset planning and are often hindered by unclear taxation. Compared to Japan, which has specific tax laws for successive beneficiary trusts, Taiwan's tax system lacks clear tax provisions. It hopes that competent authorities will continue to study and clarify whether the beneficiary rights obtained by secondary beneficiaries in successive beneficiary trusts constitute a gift, inheritance, or other transfer from the settlor or the original beneficiary, and to clarify the principles of taxation.
Fourth, the Financial Services Roundtable calls for the regularization of halving the securities transaction tax rate for day trading of listed stocks. It recommends amending relevant provisions of the Securities Transaction Tax Act to regularize the collection of securities transaction tax for day trading of listed stocks at 1.5 per thousand. This would stimulate the securities trading market, increase government tax revenue, attract quality companies to list and raise capital in Taiwan, and promote economic growth.
Fifth, the Financial Services Roundtable pointed out that, based on past experience, lowering the futures transaction tax indeed helps to increase futures market trading volume, and tax revenue also returns to the average level before the tax reduction. It recommends adjusting the transaction tax for stock index futures contracts from the current 2 per hundred thousand to 1 per hundred thousand, and amending the Futures Trading Tax Act to relax the legal tax rate range for options, adjusting the options contract transaction tax from the current 1 per thousand to 0.5 per thousand.
Sixth, to increase the self-contribution rate of the new labor pension system, reducing the financial burden on the government and the pressure of insufficient public sector manpower and resources, the Financial Services Roundtable suggests amending relevant provisions of the Labor Pension Act. It proposes establishing a coexisting public and private sector structure for the self-contribution portion of labor pensions, allowing private asset management institutions to design and manage financial products approved by the competent authority, with the aim of accumulating retirement funds, for workers to choose to invest in.
Seventh, the Financial Services Roundtable explained that the current Enforcement Act excludes the application of the Electronic Signature Act for creditor's claims and mortgage or pledge certificates, as well as other types of enforcement titles. Therefore, considering the trend of digital financial service development, relevant competent authorities should continue to review the exclusion regulations for electronic documents.
Eighth, regarding the utilization of insurance industry funds, the Financial Services Roundtable stated that according to 2025 statistics, insurance industry funds have reached NT$37 trillion, and the proportion of overseas investments is too high. Recently, international financial conditions have fluctuated sharply, and the hedging costs for overseas assets have soared. This is an opportune time to guide insurance industry funds into national infrastructure construction and transformation development.
The Financial Services Roundtable explained that in addition to investing in green energy and net-zero industries, given Taiwan's declining birth rate and entry into a super-aged society, allocating resources to health and welfare, and improving the quality of medical care services, not only stabilizes long-term investment but also allows for improving industry operating models through diligent governance and engagement mechanisms, achieving a win-win effect.
Finally, regarding the insurance industry's adoption of International Financial Reporting Standard 17 (IFRS17) and the new generation solvency system (TW-ICS) this year, the Financial Supervisory Commission has amended relevant administrative orders. It hopes that the Financial Supervisory Commission will regularly review the system based on the actual implementation by operators after adoption, and continue to monitor the latest developments in international systems announced by the International Association of Insurance Supervisors (IAIS), and adjust and amend accordingly. (Editor: Lin Shu-Yuan) 1150501
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(Central News Agency reporter Lu Yen-Tzu, Taipei, 1st) The Financial Services Roundtable, through its latest special publication, put forward 9 policy recommendations, calling for a re-evaluation of the financial business tax rate and how its revenue is used, amendments to the principles for attributing income, costs, and expenses for financial holding companies, and improvement of tax regulations for successive beneficiaries to promote the development of family trusts, among others. It hopes that relevant competent authorities will continue to review and pay attention to these issues and incorporate them into future policy plans.
The Taiwan Financial Services Roundtable yesterday issued its "20th Anniversary Commemorative Special Publication," which fully records policy recommendations from its establishment on May 25, 2005, until 2025 regarding white papers on financial recommendations. Among these, 9 items have been repeatedly proposed and listed as issues for continuous evaluation or timely promotion.
First, the Financial Services Roundtable stated that the Ministry of Finance restored the business tax rate for the banking and insurance industries from 2% to 5% in 2014. Of this, 3% is allocated to the national treasury, and 2% is allocated to a special reserve for the financial industry as stipulated by the Business Tax Act. Subsequently, there have been recommendations that the 5% business tax rate should not be applied for too long to ensure the international competitiveness of the banking and insurance industries. However, after evaluation, the Ministry of Finance still maintained the 5% business tax.
The Financial Services Roundtable explained that the domestic financial service industry's overall income tax burden has significantly increased due to the higher tax rate under the Income Basic Tax Act, and unlike other industries, it cannot apply various investment tax credits and preferential tax measures. If the financial business tax rate could be re-examined and lowered, it would contribute to the upgrading of the financial service industry and its related industries.
Second, regarding the amendment of the principles for attributing income, costs, and expenses for financial holding companies, the Financial Services Roundtable explained that current tax collection practices still require financial holding companies to negotiate with tax authorities regarding operating expenses and interest expenses that cannot be clearly attributed. This has not kept pace with the substantial operating activities of financial holding companies and changes in regulations and the operating environment. It hopes that the Ministry of Finance will re-examine the attribution and allocation of costs and expense items to rectify the discrepancy between financial holding company laws and actual operations.
Third, to promote the development of family trusts, the Financial Services Roundtable stated that family trusts are essentially intergenerational asset planning and are often hindered by unclear taxation. Compared to Japan, which has specific tax laws for successive beneficiary trusts, Taiwan's tax system lacks clear tax provisions. It hopes that competent authorities will continue to study and clarify whether the beneficiary rights obtained by secondary beneficiaries in successive beneficiary trusts constitute a gift, inheritance, or other transfer from the settlor or the original beneficiary, and to clarify the principles of taxation.
Fourth, the Financial Services Roundtable calls for the regularization of halving the securities transaction tax rate for day trading of listed stocks. It recommends amending relevant provisions of the Securities Transaction Tax Act to regularize the collection of securities transaction tax for day trading of listed stocks at 1.5 per thousand. This would stimulate the securities trading market, increase government tax revenue, attract quality companies to list and raise capital in Taiwan, and promote economic growth.
Fifth, the Financial Services Roundtable pointed out that, based on past experience, lowering the futures transaction tax indeed helps to increase futures market trading volume, and tax revenue also returns to the average level before the tax reduction. It recommends adjusting the transaction tax for stock index futures contracts from the current 2 per hundred thousand to 1 per hundred thousand, and amending the Futures Trading Tax Act to relax the legal tax rate range for options, adjusting the options contract transaction tax from the current 1 per thousand to 0.5 per thousand.
Sixth, to increase the self-contribution rate of the new labor pension system, reducing the financial burden on the government and the pressure of insufficient public sector manpower and resources, the Financial Services Roundtable suggests amending relevant provisions of the Labor Pension Act. It proposes establishing a coexisting public and private sector structure for the self-contribution portion of labor pensions, allowing private asset management institutions to design and manage financial products approved by the competent authority, with the aim of accumulating retirement funds, for workers to choose to invest in.
Seventh, the Financial Services Roundtable explained that the current Enforcement Act excludes the application of the Electronic Signature Act for creditor's claims and mortgage or pledge certificates, as well as other types of enforcement titles. Therefore, considering the trend of digital financial service development, relevant competent authorities should continue to review the exclusion regulations for electronic documents.
Eighth, regarding the utilization of insurance industry funds, the Financial Services Roundtable stated that according to 2025 statistics, insurance industry funds have reached NT$37 trillion, and the proportion of overseas investments is too high. Recently, international financial conditions have fluctuated sharply, and the hedging costs for overseas assets have soared. This is an opportune time to guide insurance industry funds into national infrastructure construction and transformation development.
The Financial Services Roundtable explained that in addition to investing in green energy and net-zero industries, given Taiwan's declining birth rate and entry into a super-aged society, allocating resources to health and welfare, and improving the quality of medical care services, not only stabilizes long-term investment but also allows for improving industry operating models through diligent governance and engagement mechanisms, achieving a win-win effect.
Finally, regarding the insurance industry's adoption of International Financial Reporting Standard 17 (IFRS17) and the new generation solvency system (TW-ICS) this year, the Financial Supervisory Commission has amended relevant administrative orders. It hopes that the Financial Supervisory Commission will regularly review the system based on the actual implementation by operators after adoption, and continue to monitor the latest developments in international systems announced by the International Association of Insurance Supervisors (IAIS), and adjust and amend accordingly. (Editor: Lin Shu-Yuan) 1150501
Choose to stand with facts; every donation you make helps protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated.
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.
Keywords: