Starting from December 25, 2015, the direct transfer, inheritance, and donation of fixed income between private parties for public offering bonds shall be operated by the participant who shall review related documents and operate the "bond transfer" transaction (transaction code C56) for account transfer operations. For private placement bonds, the participant shall operate the "direct account transfer/cancellation application between individuals" transaction (transaction code 375) or the "inheritance, donation, price offset by shares, and waiver of stocks account transfer/cancellation application" transaction (transaction code 376) for the account transfer.

After the selling bond dealer submits the customer's bond passbook and discovers that there are discrepancies between the contents of the bond passbook and the transaction information, the selling bond dealer shall fill out the "bond passbook correction application form" and submit the original copy of the bond passbook to TDCC to apply for the cancellation of the bond passbook. If the dealer fails to provide the original copy of the bond passbook, the correction application form must be signed by the customer. The application form may be faxed to TDCC but the original copy of the application form and the bond passbook must be submitted within five business days after the application date. After TDCC reviews and verifies the information, it shall notify the selling bond dealer to reopen the bond passbook.

If the bond passbook is damaged or lost, the selling bond dealer shall fill out an affidavit and apply the originally retained seals or the customer's signature/seal and apply to TDCC for the cancellation of the bond passbook. The affidavit may be faxed to TDCC but the original copy must be submitted within five business days after the application date. After TDCC reviews and verifies the contents of the affidavit, it shall notify the selling bond dealer to operate the "bond passbook issuance" transaction (transaction code A74). The dealer shall print the bond passbook, apply its seal, and deliver it to the customer. The passbook shall also be specified as reissued.

When a bond repurchase/resale transaction matures, the selling bond dealer may fill out the "bond repurchase/resale due notification and bond passbook cancellation application form" and operate the "bond repurchase/resale due notification and bond passbook cancellation application" transaction (transaction code A75) and notify TDCC to process passbook cancellation. Where amounts are due, it shall also specify the payable amount, payment method, and the time. After TDCC reviews and verifies the information of due transactions and bond positions, it shall cancel the bond passbook records.

When a repurchase/resale transaction is terminated early, the bond dealer shall fill out an affidavit and submit the original copy of the bond passbook to TDCC to apply for the cancellation of the bond passbook. If the dealer fails to provide the original copy of the bond passbook, the affidavit must be signed by the customer and the customer's payment certificate must be provided. The affidavit and payment certificate may be faxed to TDCC but the original copy of the affidavit and the bond passbook must be submitted within five business days after the early termination date. After TDCC reviews and verifies the information, it shall terminate the bond passbook records.

Yes. The bond holder may set up NTD bond principal and interest repayment accounts in different banks in the TDCC system. When the principal and interest is repaid, TDCC shall provide information to the principal and interest collection institution to process the payment of the principal and interest based on the accounts in the same banks specified by the bond holder and bond principal and interest repayment institution. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account specified by the bond holder. Yes. The bondholder may set up repayment of the principal and payment of interest of NTD bond principal and interest repayment accounts number in different banks in the TDCC system. When the principal and interest is paid, TDCC shall provide the principal and interest payment institution the bank accounts numbers retained by the bondholder which is the same as institution to process the repayment of the principal and payment of interest based on the accounts in the same banks. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account designated by the bond holder.accounts number in different banks in the TDCC system. When the principal and interest is paid, TDCC shall provide the principal and interest payment institution the bank accounts numbers retained by the bondholder which is the same as institution to process the repayment of the principal and payment of interest based on the accounts in the same banks. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account designated by the bond holder.

A government stripped bond is a bond where the "principal" and "interest" in an interest-bearing bond is separated. After the separation, the principal part is the "principal-only bond" (hereinafter referred to as "PO") and the interest part is the "interest-only bond" (hereinafter referred to as "IO"). Both can be traded independently and both are "zero-coupon bonds." No interest shall be paid prior to maturity and the par value is repaid at the time of maturity. The five-year government bond issued on the 20th of July each year is currently adopted. The fixed par value interest rate of 2% makes it a strip bond. As an example, once the par value of NTD 5 million of the A94106 Type A Phase 6 government bond is divided, it is divided into:

1. Principal-Only bond: A zero-coupon bond with a par value of NTD 5 million under the code P99G20 and set to mature on July 20, 2010.
2. Interest-Only bond: (1). A zero-coupon bond with a par value of NTD 100,000 under the code I99G20 and set to mature on July 20, 2010. (2). A zero-coupon bond with a par value of NTD 100,000 under the code I98G20 and set to mature on July 20, 2009. (3). A zero-coupon bond with a par value of NTD 100,000 under the code I97G20 and set to mature on July 20, 2008. (4). A zero-coupon bond with a par value of NTD 100,000 under the code I96G20 and set to mature on July 20, 2007. (5). A zero-coupon bond with a par value of NTD 100,000 under the code I95G20 and set to mature on July 20, 2006.

A stripped bond is referred to as STRIP and it contains six codes:

1. Principal-Only bond: The PO is indicated by the letter P in the first digit.
2. Interest-Only bond: The IO is indicated by the letter I in the first digit.
3. The second and third digits refer to the "maturity" year in the Republic of China calendar which turns into "00" by the year 100.
4. The fourth digit refers to the "maturity" month. The English letter A stands for January, B stands for February, and so on. All such bonds are currently set at G for July.
5. The fifth and sixth digits refers to the "maturity" date. All such bonds are currently set at 20 for the 20th day of the month. Therefore, P99G20 refers to a PO bond set to mature on July 20, 2010; I99G20 refers to a stripped IO bond set to mature on July 20, 2010.

1. When purchasing bills, the payment is deducted directly from the investor's account and the investor is not required to deposit (remit) funds to the bills dealer's account.
2. The issues of loss or damage of bills or custodian receipts can be prevented if the investor opens a bills account at the investor custodian bank and holds the bills through book-entry transfers.
3. Investors can directly process related procedures for pledging outright-purchased bills through the bills account and simplify manual operating procedures.

Yes. According to Point 2 of the "Regulations on the Par Value of Transactions in Short-Term Bills and Underwriting of Commercial Papers for Bill Dealers," the lowest transaction unit shall be NTD 10,000, USD 10,000, EUR 10,000, AUD 10,000, RMB 50,000, and JPY 1 million.

Only central government bond dealers and bond dealers are qualified for applying for a division of interest-bearing bonds. As the minimum registered amount of the Central Bank is NTD 100,000, the minimum amount for the division of interest-bearing government bonds with fixed nominal interest rate of 2% is NTD 5 million.

When the holder applies for the division of interest-bearing government bonds, it shall be required to pay the income tax of the interest-bearing government bond on the interest accruing from the previous interest payment date to the date of application for division and file an application with its clearing bank. The bank shall notify the Central Bank of the division and the Central Bank shall settle the division and notify the Company's clearing bank of the information of the division. The clearing bank shall register the balance of the stripped bond in the Company's bond account and notify the Company of the account registration information. The Company shall transfer the strip bond to the holder's depository account.

1. Simpler and more convenient procedures compared to purchasing and selling interest-bearing government bonds: Investors can issue orders to their securities broker to purchase stripped bonds.
2. Investors can plan for future children's education and their own pension: They can purchase zero-coupon bonds at a discount and plan fixed-sum income necessary for several years in the future.
3. Increase investment flexibility: Investors are only required to have a central custody account for securities to purchase and sale stripped bonds. The transaction amount can also be combined with the sales and purchase of securities listed on TWSE and TPEx for settlement. In other words, when the stock market shifts from a bull market to a bear market, investors can consider selling the stocks in their accounts and purchase stripped bonds. If the sales and purchase amounts are equivalent, the investor is not required to prepare additional funds and shall only be required to have a central custody account to easily navigate between the stock market and the bond market.
4. Government bonds have no credit risks and are safer and more reliable: Government bonds are issued by the state which has the highest credit rating in the country. It is safer and more reliable than time deposits in regular banks.
5. Higher liquidity than time deposits in banks: Stripped bonds can be sold in secondary markets and they have superior liquidity. Time deposits in banks can only be deposited or canceled and they generally incur a 20% reduction on interest when canceled.
6. Access to repurchase/resale transactions: Investors that hold stripped bonds may conduct financing with securities dealers through repurchase/resale transactions to increase the flexibility of fund usage.

Individual investors or corporate investors with central custody accounts and OTC account registered at securities broker can place orders for the purchase and sales of stripped bonds in the same way they purchase and sell securities.

1. The securities transaction tax and the tax of Gains derived from the securities transactions are waived.
2. Payment of the service fees to the broker: The flexible fee system in the regulations for the purchase and sales of OTC stocks capped at 0.1425% applies mutatis mutandis to the service fees collected by securities brokers from clients for the purchase and sales of stripped bonds.
3. Payment of interest income tax: (1). When bondholders sell bonds or when bonds mature, a 10% tax is withheld for the interest income accruing in the holding period (a withholding rate of 20% is applicable to non-domestic individuals or corporate investors). The tax payment withheld can be used to offset the individual income tax or profit-seeking enterprise income tax of the current year. The basis of tax base for individuals or corporate investors is as follows: Individuals: The interest shall be calculated based on the holding period of ownership. The cash payment basis shall be adopted and the interest shall be included into the tax-exempt amount of NTD 270,000 per year for interest income at maturity or sales year. The parts in excess of NTD 270,000 shall be applicable to individualincome tax based on the individual's income tax bracket. Corporate investors: The interest shall be calculated based on the duration of ownership and included as taxable income on an accrual basis. (2). The calculation of income on interest shall be based on the amounts listed in the strip bond interest allocation baseline table to calculate the actual income on interest in the period held.

The minimum par value is NTD 100,000.

Only central government bond dealers and bond dealers may apply for reorganization of PO and IO government bonds. When applying for reorganization, the applicant shall apply to its TDCC participant and request the participant to notify the Company of the information on the reorganization. After the Company confirms the information, the reorganization information shall be sent to the Company's Clearing bank. The bank shall transfer the reorganization information to the Central Bank. The Central Bank shall notify the applicant's clearing bank and transfer the interest-bearing government bonds to the government bond account of the holder.

TDCC is the tax withholder for short-term bills. According to regulations in the "Regulation governing Issuance Registration, Central Deposit and Book-Entry Operations for Short-Term Bills" the short-term bills registered or deposited by the central depository institution shall be presented for redemption by TDCC on behalf of the holder. TDCC shall also withhold tax payments on the interest of the redeemed amount in excess of the initial issuance price in accordance with related regulations in the Income Tax Act. TDCC shall compile and send the withholding tax statement to the taxpayer before the 10th of February each year. The withholding tax statement is based on the amount of withholding taxes in the investor's account from the previous year. TDCC shall also provide a detailed statement of the interest income and withholding taxe for each individual bill. When the investor receives the withholding tax statement and detailed statement, the investor shall pay the taxe of the detailed statement based on the sum of the tax applicable to the pre-owner on the trade confirmation slips and the taxes for the period the investor held the bills.

TDCC will send an official notification to the issuer after the issuer completes account opening procedures. The bills dealer can request the issuer to present the official letter as confirmation that the issuer has opened the account.

After the issuer completes the registration application, the guarantor is required to complete guarantee operations before TDCC allows the bills dealer to inquire message on the issuance of underwritten commercial papers.

After the bills dealer receives a manually delivered registration application form, it shall verify whether related contents and seals in the application form meets those in the authorization for certification and underwriting. It shall then apply the TDCC seal and deliver it to the physical securities deposit bank.

No. After the commercial paper registration system is implemented, bills dealers shall send the issuance registration instruction (101/NCPI). The original instruction for the deposit of physical bills (101/DI) is only applied to the two types of physical short-term bills including CP1 and BA.