Securities transaction tax is one type of transaction taxes with respect to sale of the certain type of securities and has different nature from that of securities transaction income tax. Regardless of the gain or loss derived from trading of securities, the securities transaction tax shall be imposed based on the transaction amount. Securities transaction income tax is an income tax imposed on the gains derived from trading of securities. The meanings of these two types of taxes are different.

The trading of certain type of securities, except for bonds issued by the government of all levels and other tax-exempt securities, is subject to the securities transaction tax. The certain type of securities described above refers to bonds issued by the governments of all levels, shares issued by companies, corporate bonds, and other securities offered to the public with government approval.

Securities transaction tax is levied on the sellers of securities and withheld and paid by the collection agents. Collection agents are classified based on the types of the transaction as follows: