Table of Contents
Examples of Taxation of Futures Contracts
Part I: Contracts Denominated in NT Dollars ............................. 2
1. TAIEX Futures (TX) ......................................................... 2
2. Mini-TAIEX Futures (MTX)............................................. 3
3. Electronic Sector Index Futures (TE) ................................ 4
4. Finance Sector Index Futures (TF) .................................... 5
5. Taiwan 50 Futures (T5F) ................................................... 6
6. Non-Finance Non-Electronics Sub-Index Futures (XIF) .. 7
7. Gre Tai Securities Market Stock Index Futures (GTF) ..... 8
8. 10-year Government Bond Futures (GBF) ........................ 9
9. 30-day Commercial Paper Interest Rate Futures (CPF) .. 10
10. TAIFEX NT Dollar Gold Futures (TGF) ...................... 11
11. Single Stock Futures ...................................................... 12
Part II: Contracts Denominated in US Dollars .......................... 15
12. TAIFEX Gold Futures (GDF) ....................................... 15
13. Conversion of transaction tax (or settlement tax on
expiration date) withheld from USD to NTD ...................... 16
1
Part I: Contracts Denominated in NT Dollars
1. TAIEX Futures (TX)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $200,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the TX contract (P) = 7,888

Market value per contract = 7,888 × $200 = $1,577,600

Transaction tax per contract = Market value of $1,577,600 × Tax rate of
0.00004 = $63.104 (rounded to nearest integer, which is $63)

Transaction tax payable = $63 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the TX contract (P) = 7,808

Market value per contract = 7,808 × $200 = $1,561,600

Settlement tax per contract = Market value of $1,561,600 × Tax rate of 0.00004
= $62.464 (rounded to nearest integer, which is $62)

Settlement tax payable on expiration date = $62 × Number of contracts settled
2
2. Mini-TAIEX Futures (MTX)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $50,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the MTX contract (P) = 7,888

Market value per contract = 7,888 × $50 = $394,400

Transaction tax per contract = Market value of $394,400 × Tax rate of 0.00004
= $15.776 (rounded to nearest integer, which is $16)

Transaction tax payable = $16 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the MTX contract (P) = 7,999

Market value per contract = 7,999 × $50 = $399,950

Settlement tax per contract = Market value of $399,950 × Tax rate of 0.00004 =
$15.998 (rounded to nearest integer, which is $16)

Settlement tax payable on expiration date = $16 × Number of contracts settled
3
3. Electronic Sector Index Futures (TE)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $4,000,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the TE contract (P) = 332.85

Market value per contract = 332.85 × $4,000 = $1,331,400

Transaction tax per contract = Market value of $1,331,400 × Tax rate of
0.00004 = $53.256 (rounded to nearest integer, which is $53)

Transaction tax payable = $53 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the TE contract (P) = 334.45

Market value per contract = 334.45 × $4,000 = $1,337,800

Settlement tax per contract = Market value of $1,337,800 × Tax rate of 0.00004
= $53.512 (rounded to nearest integer, which is $54)

Settlement tax payable on expiration date = $54 × Number of contracts settled
4
4. Finance Sector Index Futures (TF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $1,000,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the TF contract (P) = 967.2

Market value per contract = 967.2 × $1,000 = $967,200

Transaction tax per contract = Market value of $967,200 × Tax rate of 0.00004
= $38.688 (rounded to nearest integer, which is $39)

Transaction tax payable = $39 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the TF contract (P) = 976.8

Market value per contract = 976.8 × $1,000 = $976,800

Settlement tax per contract = Market value of $976,800 × Tax rate at 0.00004 =
$39.072 (rounded to nearest integer, which is $39)

Settlement tax payable on expiration date = $39 × Number of contracts settled
5
5. Taiwan 50 Futures (T5F)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $100,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the T5F contract (P) = 5,743

Market value per contract = 5,743 × $100 = $574,300

Transaction tax per contract = Market value of $574,300 × Tax rate of 0.00004
= $22.972 (rounded to nearest integer, which is $23)

Transaction tax payable = $23 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the T5F contract (P) = 5,768

Market value per contract = 5,768 × $100 = $576,800

Settlement tax per contract = Market value of $576,800 × Tax rate of 0.00004 =
$23.072 (rounded to nearest integer, which is $23)

Settlement tax payable on expiration date = $23 × Number of contracts settled
6
6. Non-Finance Non-Electronics Sub-Index Futures (XIF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $100,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the XIF contract (P) = 8,743

Market value per contract = 8,743 × $100 = $874,300

Transaction tax per contract = Market value of $874,300 × Tax rate of 0.00004
= $34.972 (rounded to nearest integer, which is $35)

Transaction tax payable = $35 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the XIF contract (P) = 8,768

Market value per contract = 8,768 × $100 = $876,800

Settlement tax per contract = Market value of $876,800 × Tax rate of 0.00004 =
$35.072 (rounded to nearest integer, which is $35)

Settlement tax payable on expiration date = $35 × Number of contracts settled
7
7. Gre Tai Securities Market Stock Index Futures (GTF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $4,000,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004

Given transaction price of the GTF contract (P) = 198

Market value per contract = 198 × $4,000 = $792,000

Transaction tax per contract = Market value of $792,000 × Tax rate of 0.00004
= $31.68 (rounded to nearest integer, which is $32)

Transaction tax payable = $32 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.00004

Given final settlement price of the GTF contract (P) = 212

Market value per contract = 212 × $4,000 = $848,000

Settlement tax per contract = Market value of $848,000 × Tax rate of 0.00004 =
$33.92 (rounded to nearest integer, which is $34)

Settlement tax payable on expiration date = $34 × Number of contracts settled
8
8. 10-year Government Bond Futures (GBF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $50,000,
P = Transaction Price or Cash Settlement Price
[Example 1] Transaction tax rate = 0.00000125

Given transaction price of the GBF contract (P) = $107.355

Market value per contract = $107.355 × $50,000 = $5,367,750

Transaction tax per contract = Market value of $5,367,750 × Tax rate of
0.00000125 = $6.7096875 (rounded to nearest integer, which is $7)

Transaction tax payable = $7 × Number of contracts traded
[Example 2] Physical delivery on expiration date will be transaction tax-free.
[Example 3] Settlement tax rate on expiration date = 0.00000125 for cash
delivery

Given market value per contract for bid side = $6,442,199

Given market value per contract for offer side = $6,506,621

Settlement tax per contract for bid side= Market value of $6,442,199× Tax rate
of 0.00000125 = $8.0527 (rounded to nearest integer, which is $8)

Settlement tax per contract for offer side= Market value of $6,506,621× Tax
rate of 0.00000125 = $8.1332 (rounded to nearest integer, which is $8)

Settlement tax payable for bid side on expiration date = $8 × Number of
contracts settled

Settlement tax payable for offer side on expiration date = $8 × Number of
contracts settled
9
9. 30-day Commercial Paper Interest Rate Futures (CPF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract
= [100－(100－P) × 30 ÷ 365] × 1% × $100,000,000
= [100－(100－P) × 30 ÷ 365] × $1,000,000,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.000000125

Given transaction price of the CPF contract (P) = $98.925

Market value per contract = [100－(100－98.925) × 30 ÷ 365] × $1,000,000 =
$99,911,644

Transaction tax per contract = Market value of $99,911,644 × Tax rate of
0.000000125 = $12.4889555 (rounded to nearest integer, which is $12)

Transaction tax payable = $12 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.000000125

Given final settlement price of the CPF contract (P) = 98.825

Market value per contract = [100－(100－98.825) × 30 ÷ 365] × $1,000,000 =
$99,903,425

Settlement tax per contract = Market value of $99,903,425 × Tax rate of
0.000000125 = $12.487928125 (rounded to nearest integer, which is $12)

Settlement tax payable on expiration date = $12 × Number of contracts settled
10
10. TAIFEX NT Dollar Gold Futures (TGF)
Tax formula for futures transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × $100,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.0000025

Given transaction price of the TGF contract (P) = 3,300

Market value per contract = 3,300 × $100 = $330,000

Transaction tax withheld per contract = Market value of $330,000 × Tax rate of
0.0000025 = $ 0.825 (rounded to nearest integer, which is $1)

Transaction tax payable = $1 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.0000025

Given final settlement price of the TGF contract (P) = 3,250

Market value per contract = 3,250 × $100 = $325,000

Settlement tax withheld per contract = Market value of $325,000 × Tax rate of
0.0000025 = $0.8125 (rounded to nearest integer, which is $1)

Settlement tax withheld on expiration date = $1 × Number of contracts settled
11
11. Single Stock Futures
Examples for single stock futures (when there is no contract adjustment):
Tax formula for transactions (or for settlement on expiration date) =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>
× Number of contracts traded
Market value per contract = P × 2,000,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.00004
 Given transaction price of the Single Stock Futures contract on TSMC (P) =
$60.0
 Market value per contract = $60.0 × 2,000 = $120,000
 Transaction tax per contract = Market value of $120,000 × Tax rate of 0.00004
= $4.8 (rounded to nearest integer, which is $5)

Transaction tax payable = $5 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date= 0.00004
 Given final settlement price of the Single Stock Futures contract on TSMC (P)
= $61.0
 Market value per contract = $61.0 × 2,000 = $122,000
 Settlement tax per contract = Market value of $122,000 × Tax rate of 0.00004 =
$4.88 (rounded to nearest integer, which is $5)
 Settlement tax payable = $5 × Number of contracts settled
12
Examples for single stock futures after contract adjustment:
Tax formula for transactions (or for settlement on expiration date) after contract
adjustment =
(Market value per contract × Transaction tax rate) <Rounded to nearest integer>>
× Number of contracts traded
※Market value per contract prior to settlement = (Futures price × New
multiplier for shares of the underlying stock after contract adjustment)＋
(Equivalent value of other benefits that have been issued), where
1. (Futures price × New multiplier for shares of the underlying stock after
contract adjustment) should be rounded down to the nearest integer.
2. (Equivalent value of other benefits that have been issued) should be
rounded down to the nearest integer.
※Settlement value of the contract ＝
(Final settlement price × New multiplier for shares of the underlying stock
after contract adjustment)＋(Fair value of the subscription rights)＋
(Equivalent value of other benefits that have been issued), where
1. (Final settlement price × New multiplier for shares of the underlying stock
after contract adjustment) should be rounded down to the nearest integer.
2. (Fair value of the subscription rights) should be rounded down to the
nearest integer.
3. (Equivalent value of other benefits that have been issued) should be
rounded down to the nearest integer.
[Example 3] Transaction tax rate = 0.00004
Given new multiplier for shares of the underlying stock after contract
adjustment of the Single Stock Futures contract on TSMC = 2,400 shares
 Given transaction price of the Single Stock Futures contract on TSMC (P) =
$50.0
 Market value per contract = $50.0 × 2,400 = $120,000
 Transaction tax per contract = Market value of $120,000 × Tax rate at 0.00004

13
= $4.8 (rounded to nearest integer, which is $5)

Transaction tax payable = $5 × Number of contracts traded
[Example 4] Settlement tax rate on expiration date = 0.00004
Given new multiplier for shares of the underlying stock after contract
adjustment of the Single Stock Futures contract on TSMC = 2,400 shares
 Given transaction price of the Single Stock Futures contract on TSMC (P) =
$51.0
 Market value per contract = $51.0 × 2,400 = $122,400
 Settlement tax per contract = Market value of $122,400 × Tax rate at 0.00004 =
$4.896 (rounded to nearest integer, which is $5)


Settlement tax payable = $5 × Number of contracts traded
14
Part II: Contracts Denominated in US Dollars
12. TAIFEX Gold Futures (GDF)
Tax withholding formula for futures transactions (or for settlement on expiration
date) =
(Market value per contract × Transaction tax rate) <Rounded to the
nearest 2nd decimal place> × Number of contracts traded
Market value per contract = P × US$100,
P = Transaction Price or Final Settlement Price on Expiration Date
[Example 1] Transaction tax rate = 0.0000025

Given transaction price of the GDF contract (P) = 696.5

Market value per contract = 696.5 × US$100 = US$69,650

Transaction tax withheld per contract = Market value of US$69,650 × Tax rate
of 0.0000025= US$0.174125 (should be rounded to the nearest 2nd decimal
place, which is US$0.17)

Transaction tax withheld = US$0.17 × Number of contracts traded
[Example 2] Settlement tax rate on expiration date = 0.0000025

Given final settlement price of the GDF contract (P) = 685.5

Market value per contract = 685.5 × US$100 = US$68,550

Settlement tax withheld per contract = Market value of US$68,550 × Tax rate at
0.0000025 = US$0.171375 (should be rounded to the nearest 2nd decimal
place, which is US$0.17)

Settlement tax withheld on expiration date = US$0.17 × Number of contracts
settled
15
13. Conversion of transaction tax (or settlement tax on expiration
date) withheld from USD to NTD
Tax formula for futures transactions (or for settlement on expiration date) in
NTD =
Total transaction tax withheld in USD × FX rate (NT$/US$) <Rounded to
nearest integer>
[Example 1] Given 3 customers’ traded contracts denominated in USD, and the
FX rate (NT$/US$) is 32.15

Tax payable for customer A = US$65.23

Tax payable for customer B = US$123.55

Tax payable for customer C = US$95.50

Total tax withheld = US$65.23 + US$123.55 + US$95.50 = US$284.28

Tax in NTD = US$284.28 × 32.15 (NT$/US$) = NT$9,139.602 (should be
rounded to integer, which is NT$9,140)
16