Introduction to Government Bonds

Central Government Development Bonds (abbreviated as Government Bonds or Central Bonds) are transferable debt instruments with a maturity of one year or more, issued by the government to address financial revenue and expenditure issues or to raise funds. According to the "Regulations Governing the Issuance of Central Government Development Bonds" promulgated by the Ministry of Finance, Government Bonds are classified into two types: A and B..
When issued, they are coded separately according to the year of issuance, type, and series.
For example: A 86 1 01

A represents “Government Bonds”

86 represents “Year of Issuance”

1 represents “Type”

1：Type A Government Bonds

2：Type B Government Bonds

3：Type A Transportation Infrastructure Government Bonds

4：Type B Transportation Infrastructure Government Bonds

01 represents the “series”

Government Bond Tax Liabilities

Securities Transaction Tax, Securities Transaction Income Tax, Business Tax：tax exemption

Interest Income Tax

Interest income tax is subject to a 10% separate withholding tax. The individual tax-free allowance of NT$270,000 does not apply, and there is no need to include it in the annual income tax return.

Book-Entry Government Bonds

This refers to government bonds issued in registered form, where the clearing bank electronically registers the relevant information and issues a government bond passbook. Because there are no physical bond certificates, they are also known as dematerialized or book-entry government bonds. The principal and interest are automatically transferred by the clearing bank to the investor's bank deposit account on each bond's interest payment date and maturity date.