Taiwan Considers Reducing Luxury Tax On Yachts

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

04 June 2014

Following a ministerial meeting to discuss the development of Taiwan's yacht industry, Executive Yuan spokesperson Sun Lih-chyun has indicated that a luxury tax cut for yachts is under consideration.

The Government feels that Taiwan is very well-positioned to further develop its yacht industry, which is currently ranked fifth in the world. This would further boost tourism numbers, it said.

The ministerial meeting decided that there was room for discussion on whether to review the present 10 percent luxury tax on yachts priced at over TWD3m (USD99,800) to improve the territory's attractiveness. Premier Jiang Yi-huah has asked the Minister without Portfolio, Yang Chiu-hsing, to formulate suggestions concerning the supply and demand sides of the industry.

The Ministry of Finance and other interested government agencies are now said to be reviewing the case for repealing the levy, or perhaps reducing it. Sun predicted that it would be "relaxed" in due course.

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