A luxury tax bill that aims to stabilize the real estate market and ensure fair taxation in Taiwan was approved by the Legislative Yuan April 15.
With the bill’s passage, goods valued at more than NT$3 million (US$103,300), including automobiles, yachts, private jets and helicopters, will be subject to a 10-percent luxury tax.
In addition, a 15-percent luxury tax will be imposed on the resale within a year after purchase of real estate, including residences and idle lands, with the rate dropping to 10 percent for resale between one and two years after purchase.
Premier Wu Den-yih said last month that “the bill addresses claims that the country’s tax system encourages real estate speculation and ostentatious spending.”
Wu added that the additional revenues generated by the new tax would go toward social welfare and assistance programs.