| Summary: | 碩士 === 佛光大學 === 應用經濟學系 === 105 === Taiwan stock market has been experienced in five impacts from capital gain tax on securities. Tracing back to five times of capital gain tax on securities imposed by the government over the years, such tax had been levied on July, 1955 before the establishment of Taiwan Stock Exchange (TWSE); however, most dealings were OTC (Over-the-Counter-market) causing the implementation to be abolished five years later for uneasy taxation without TWSE. Less than three years on 1963, capital gain tax on securities was levied for the second time on the next year after TWSE was set up. Nevertheless, Executive Yuan decided to suspend taxing capital gain tax on securities available to individual account as difficulties in tax inspection while taxation of legal person remained unchanged. It just caused the chaos that many legal persons used nominee accounts for tax avoidance.
The government suspended imposing capital gain tax on securities to encourage investment in 1971, but it restored to impose the tax for the third time on February, 1973 for the suppression of stock-market speculation; besides, those held stocks more than one year could be tax free for the purpose of long-term investment. The first global oil crisis broke out in 1975 causing Taiwan stock market volume declined and downturn. In order to encourage investors to buy stocks, the government stipulated that buying stocks more than NT$300,000 would be tax exemption. Even though some disputes might be arisen from the problems in taxation skill and identification between cost and profit, the government decided to cease levying capital gain tax on securities on January 1, 1976.
The top classical record occurred on September, 1988, Shirley Kuo, Minster of Finance, Executive Yuan at that moment, announced that capital gain tax on securities for the fourth time would be imposed on the next year (January, 1989). Listed companies in Taiwan stock market opening limit down lasted for 19 consecutive days after announcement. It was not until 2012 that Ma Ying-Jeou Government and Christina Liu, Minster of Finance, Executive Yuan at that moment announced to restore capital gain tax on securities from 2013. This was the fifth tax restoration of capital gain tax on securities, causing decrease of daily average trading volumes and shrinkage of price fluctuation.
The investors mostly think capital gain tax on securities may affect Taiwan stock market every time; however, whether or not the results will be so is the main discussion points in this article. According to the previous literatures, lots of studies assumed that capital gain tax on securities indeed influenced on the performance in Taiwan stock market, but the variable was designed on the matter of capital gain tax on securities itself without considering other factors that might affect the stock market, for instance, the performance in international stock market during the corresponding period. Consequently, this article added this variable as research tool other than traditional event study to fully prove the impact of capital gain tax for securities on Taiwan stocks. In accordance with empirical result, capital gain tax on securities will significantly impact on short-term abnormal return of Taiwan stocks; because sample data was selected on that day, mid- and long-term based on weekly or monthly data can be considered to select for observing mid- and long-term impact results.
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