Is securities transaction tax (STT) levied on transactions involving exchange traded funds (ETFs)?
Is securities transaction tax (STT) levied on transactions involving exchange traded funds (ETFs)? Find a clear answer in this FAQ by 021 Trade.
Transactions involving certain types of ETFs are exempt from Securities Transaction Tax (STT), including:
- Gold ETFs โ These ETFs provide exposure to gold without the need to hold physical gold.
- Liquid and Gilt ETFs โ These ETFs are primarily used for parking short-term funds, with investments made in high-quality, low-risk debt instruments.
- International ETFs โ These ETFs invest in foreign markets and are also exempt from STT.
For ETF transactions where STT is applicable, the rates are as follows:
- Overnight Trades: 0.001% on the sell side.
- Intraday Trades: 0.025% on the sell side.
To know more about the STT non-applicability report, please refer to:
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