Taiwan Looks To Extend Luxury Homes Tax Nationwide

by Mary Swire, Tax-News.com, Hong Kong

16 December 2009

Taiwan’s Ministry of Finance is hoping that the taxation of luxury homes, to be introduced in Taipei City, will be extended throughout the country.

Taipei is already laying down its plans for the tax on luxury residences, but does not consider that it will be ready to be introduced before 2011.

Given the potential for a property boom in Taiwan, the Finance Ministry is hoping that similar measures can be organized by other Taiwanese cities and counties.

It has, therefore, provided information to tax collection offices in the whole territory so that they can look at their property valuation methods, and then examine similar policies. While high-priced homes are more evident in the capital, significant numbers exist, or are being built, in other areas.

While the details of its new tax are to be finalized next year, Taipei, at present, is considering taxing homes with a market value of over TWD100m (USD3.1m), with the aim of collecting some TWD1bn in additional revenue annually. However, it has been reported that current property taxes in the city will provide only TWD10bn this year.

A comprehensive report in our Intelligence Report series dealing with the issues raised by international property investment, and the possible taxation implications raised by such purchases, with an account of the likely (and some less obvious) potential countries for your consideration, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report15.asp

 

 






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