CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Taiwan's Outgoing Property Tax Revenue Disappoints

Taiwan's Outgoing Property Tax Revenue Disappoints

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

29 December 2015


Taiwan's luxury tax on the sale of properties, which is to be replaced by a new property capital gains tax (CGT) from January 1, 2016, has failed to yield the expected revenue since it was imposed in June 2011.

According to reported government statistics, the luxury tax provided total additional revenue of only TWD12.5bn (USD381m) over its entire life. However, it did achieve its goal of cooling down speculation in Taiwan's housing market, with short-term real estate transactions falling significantly.

Under the luxury tax, the owner of a property suffered a 15 percent tax if it was sold within one year of its purchase, falling to 10 percent if sold during the second year. The taxable amount was based on the property's final sale price rather than the owner's capital gain.

The new 45 percent CGT will be levied on the proceeds from any property sale that occurs within one year of purchase. Properties held for longer periods before being sold will be subject to lower taxes of 35 percent if the property has been held for a period of between one and two years; 20 percent if held for between 2 and 10 years; and 15 percent if held for more than 10 years.

TAGS: capital gains tax (CGT) | tax | investment | real-estate investment | property tax | real-estate | luxury tax | Taiwan | tax rates | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »