In the 26 April 2012 meeting of the Executive Yuan, the proposal to amend the Income Tax Act and the Income Basic Tax Act was adopted. Securities gains tax will be imposed on individual investors, while securities and futures gains tax will be imposed on corporate investors.

For individual investors, although the tax on securities gains will be separately assessed from other personal incomes, securities gains will have to be declared on the same annual personal income tax return. All income from stocks and beneficiary certificates of private equity funds is deemed taxable. A NT$4 million tax deduction will be granted per household and all losses in the stock market can be offset against income in the following three years. A tax rate of 15%~20% will be imposed at the discretion of the Executive Yuan depending on the nation's economic condition. To encourage long-term investment, half of the gains derived from stocks that have been held for more than three years will not be taxed.

For corporate investors, securities and futures gains received by a profit-seeking enterprise that has a fixed place of business or business agent in the ROC will be subject to alternative minimum tax. Moreover, the deductable amount will be lowered from current NT$2 million to NT$0.5 million and the prevailing tax rate of 10%~12% will be raised to 12%~15%. Any losses can still be offset against income in the following five years. In addition, the proposal suggests that the gains derived from stocks that have been held for more than three years, subtracted by the losses incurred from holding the stocks for more than three years, be taxed at half of the balance.

Since the bill needs to be passed by the Legislative Yuan. Currently, each of the KMT and the DPP proposed revised bills for discussion. Whether this bill will be passed and the final version (if approved) will remains to be seen.