200 Lots of 00878 Paid NT$200,000 — Why No NHI Supplementary Premium? The 2.11% Only Counts "Dividend Income"

Data as of: 2026-10-30. Supplementary premium rules per the Regulations for Withholding and Paying NHI Supplementary Premiums (amended 2024-03-20) and NHIA explanations; 00878 distribution breakdowns from Cathay SITE’s second-stage distribution notices (cross-checked via Business Today, CMoney and others). Applies to regular employees and dependents; employers and self-employed people are calculated differently. The Q4 2026 breakdown awaits the second-stage notice; rely on your distribution notice before trading.

This short had 116,000 Facebook plays and 40,000 on YouTube, the most-watched in my dividend series. Many people’s first reaction: I received so much and nothing was deducted — was it a mistake?

The conclusion in three sentences:

• It wasn’t a mistake. The supplementary premium only counts the dividend income in a distribution; capital gains and income equalization don’t count.
• 00878 paid NT$1.01 last quarter, but dividend income was only 9.9%. 200 lots received NT$202,000, of which dividend income was only NT$19,998 — NT$2 short of the NT$20,000 threshold.
• The threshold changes every quarter. Over the past 8 quarters, the number of lots needed to be charged ranged from 65 to 201. Don’t use last quarter’s number as this quarter’s shield.

Where I stand: I don’t own 00878. My core holdings are 0050, the S&P 500 and QQQ. My own 0050 has never been charged the supplementary premium either.

The rule: 2.11% once a single dividend payment reaches NT$20,000

The key words are “dividend income.” Article 3 of the regulations defines it as Category 1 corporate shareholder dividends under Article 14 of the Income Tax Act.

An ETF distribution often mixes several kinds of money:

• Dividend income: cash dividends paid to the ETF by its holdings → counts
• Realized capital gains: profits from the ETF selling stocks → doesn’t count
• Income equalization: money brought in by new subscribers to stabilize distributions → doesn’t count

00878 last quarter: only NT$0.10 of NT$1.01 was dividend income

00878 paid NT$1.01 in Q3 2026, its first time above NT$1. But the breakdown was:

For 200 lots:

• Distribution: 200 × 1,000 × 1.01 = NT$202,000
• Dividend income: 200,000 units × 0.09999 = NT$19,998
• Threshold NT$20,000, NT$2 short → supplementary premium: 0

For comparison: if all NT$1.01 were dividend income, about 20 lots would trigger the premium.

The threshold moves every quarter

I laid out the past 8 quarters and calculated how many lots it takes to be charged:

Lots to be charged = the smallest number of lots where “lots × 1,000 × dividend income per unit ≥ 20,000.”

The lowest threshold in 8 quarters was 65 lots, about NT$2.26 million at the 10/30 close of NT$34.81. In other words, holders of fewer than 65 lots weren’t charged in any of these 8 quarters (regular status, single payment).

The 2026Q3, Q2 and 2025Q1 breakdowns each match across two or more sources; the other 5 quarters come only from CMoney. But for any quarter’s threshold to fall below 65 lots, dividend income would need to exceed 56% (at NT$0.55) or 77% (at NT$0.40), which doesn’t fit the 20%–60% range seen across quarters. So the “65 lots” conclusion holds.

How to tell whether you’ll be charged

1. Check the second-stage distribution notice. Before the ex-date, the issuer publishes the breakdown (dividend income, capital gains, income equalization).
2. Multiply your units by dividend income per unit. Not by the total distribution per unit.
3. Rely on your distribution notice. Whether you were actually charged will be stated there.

My view: the supplementary premium is just one part of the cost of distributions. NHI only counts dividend income, not how much you received. Each quarter’s breakdown differs, so the threshold jumps — don’t decide whether to buy more this quarter based on “I wasn’t charged last quarter.”

FAQ

The short video

Further reading

Lazy conclusion

懶大

金融科技新創 CEO | 獨立財務顧問

1. The rule: 2.11% supplementary premium, charged on the full amount once a single dividend income payment reaches NT$20,000
2. ETFs only count dividend income: capital gains and income equalization don’t count
3. 00878 Q3: only 9.9% of NT$1.01 was dividend income; 200 lots had NT$19,998 — NT$2 short
4. The threshold moves every quarter: from 65 to 201 lots over 8 quarters; holders under 65 lots were never charged
5. How to check: read the second-stage breakdown, use dividend income per unit, and rely on your notice

NHI only counts dividend income, not how much you received.

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Sources

• Regulations for Withholding and Paying NHI Supplementary Premiums Articles 3 and 4 (Laws & Regulations Database L0060027, amended 2024-03-20)
• National Health Insurance Administration: overview of supplementary premiums
• 00878 distribution breakdowns: Cathay SITE second-stage notices; Business Today 2026-10-15, Business Insider, CMoney (quarterly compilation)
• 00878 close NT$34.81 (2026-10-30)
• Math: lots to be charged = ⌈20,000 ÷ (1,000 × dividend income per unit)⌉

This post explains the rules and runs example numbers. It is not investment advice. Actual deductions are as shown on your distribution notice.