Research On Taiwan Securities Transaction Tax

The U.S. financial crisis in 2007 had far-reaching influence on the economic development of Europe, but it got worse after the outbreak of the European sovereign debt crisis in 2009. In the process of seeking ways out of this dilemma, the draft of Financial Transaction Tax(FTT)proposed by EU is fairly representative. In 2011, the first version of FTT’s draft was planned to be levied in EU-27. After a long time of discussion, until 2014, the revised draft of FTT was determined to be implemented in 2016.As a kind of tax which has the same nature with FTT, the Securities Transaction Tax(STT) has been introduced in Taiwan since 1955. There are four times of terminations and re-implementations in the sixty-year development history of SST caused by the unreasonable tax system, irresponsible supervision and other reasons. Faced with the upcoming levy of FTT, the discussion of the development of Taiwan STT concerns the stability of Taiwan stock market, but also its own economic and trade relations between EU. This paper tries to propose some relevant suggestions for STT’s perfection from the perspective of FTT.By using the method of field research, this paper not only collects the historical materials and literature of Taiwan STT,but also collects the documents of FTT issued by EU and its related researches of other scholars. Combined with the literature research method, this paper analyzes and summarizes that there are defects existing in tax system setting and supervision of STT in its development history. Then after analyzing the levying purpose and its expected effects of EU FTT, this paper proposes to perfect STT from four aspects, including improving its tax system,clearing its role and status, strengthening tax cooperation with EU and enhancing supervision.The innovative points include two aspects, one is the paper’s unique prospective. FTT won’t be levied until 2016, its research is subject frontier. It is the first time to analyze Taiwan STT from the prospective of EU FTT. The other is the method of field investigation. All the materials and data of Taiwan STT were collected by the writer taking advantages of being an exchange students in National University of Kaohsiung in 2014, which constitute the strong base of this paper’s analysis.