|Eligibility||Laws & Regulations of Tax Reduction and Exemption or Tax Incentives|
|A person or an enterprise which engages in trading of corporate bonds and financial bonds||Article 2-1
In order to increase trading in the bond market, help enterprises raise money, and promote the operation of the capital markets, the securities transaction tax levied on corporate bonds and finance bonds shall be suspended during the period from January 1, 2010 to December 31, 2026.
In order to promote the operation of listed or OTC-listed exchange-traded funds(ETF) mainly invested in bonds, the levy on securities transaction tax on the beneficial certificates of those funds publicly offered and issued by the securities investment trust enterprises shall be suspended during the period from January 1, 2017 to December 31, 2026. However, this provision does not apply to the beneficial certificates of an ETF that tracks, simulates, or replicates a multiple of the performance of an index or a multiple of the inverse performance of an index.
The funds of the preceding paragraph are restricted to investment in government bonds, common corporate bonds, financial debentures, bonds with repurchase or resale agreements, bank deposits, and interest rate futures contracts.