The investor is required to:
- Pay income tax for the tax year during which the investment was deducted from income tax for exemption.
- Pay a surcharge to the Revenue Department at the monthly rate of 1.5% on the exempted tax amount, but not more than the tax payable amount. The period designated to pay the surcharge will be after the last day of tax filing or remittance period of the year during which investor applied for tax exemption until the date of payment or remittance of additional taxes. It is suggested that the investor should pay as soon as possible.
- If there are capital gains incurred from redemption,
- Pay withholding taxes according to the Revenue Code Section 50(2) calculated according to relevant tax rates
- Incorporate the capital gains incurred from redemption as a taxable income
Breaches of investment conditions 1 to 3 are not applicable in the event of death or disability of the investor in accordance with conditions of the Revenue Department.
In this regard, investors must comply with the regulations stated in the SSF handbook.