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Taiwan Eyes TISA 2.0 Tax Incentives to Boost Long-Term Stock Market Liquidity
Finance · Investment Managers · economic_daily · 2026-10-22
Taiwan's government is advancing TISA 2.0 tax incentives to encourage long-term retail investment, a move expected to provide stable capital for the local stock market.
What Happened
Policy Development: The Executive Yuan is accelerating the development of the second phase of the Tax-advantaged Investment Savings Account (TISA) program. The Securities Investment Trust and Consulting Association (SITCA) has expressed strong support for these tax incentives, which aim to promote disciplined, long-term periodic investment among retail investors.
Proven Market Success: Since its inception over a year ago, the TISA program has attracted over 270,000 participants and accumulated more than NT$21.64 billion in assets. By offering reduced management and handling fees, asset managers have successfully fostered a culture of long-term retirement planning among the public.
Growth Potential: SITCA Chairman Yu Chao-wen suggests that the implementation of TISA 2.0 could mirror the success of Japan's NISA program, potentially increasing participation rates from 1% to as high as 20% of the population. This expansion is expected to significantly broaden the investor base and enhance market stability.
Market Impact: TISA-linked funds have demonstrated strong performance, often outperforming the broader market, and have shown resilience even during periods of market volatility. By drawing parallels to the U.S. 401(k) system, experts believe these consistent inflows will serve as a vital pillar for the long-term upward trajectory of the Taiwan stock market.