Taiwan passes luxury property tax amendment
March 17, 2014 - Taiwan
Taiwan’s luxury property tax amendment was recently approved by Legislative Yuan’s Finance Committee, which grants exemption to individual cases as long as the Ministry of Finance can present adequate evidentiary support.
The bill, formally known as Specifically Selected Goods and Services Tax Act, authorises the Ministry to assess real estate transactions on a case-by-case basis so that long-term investors would not be subject to the luxury tax.
A clause has also been added to require fees for properties built on land intended for industrial use.
Implemented almost three years ago, Taiwan’s luxury tax law has contributed towards the reduction of fraudulent luxury residences—units built on non-prime plots or lacking in spectacular views—in the Greater Taipei area by at least 30 to 40 percent.
In turn, this has helped stabilise the country’s house prices, according to Finance Minister Chang Sheng-ford.
The minister also reiterated that the ultimate objective of the luxury tax was to maintain a fair taxation procedure, The China Post reported.
Currently, a tax rate of 10-15 percent is imposed on the sales price of short-term luxury real estate investments that are not for personal use and are re-sold within 24 months.
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