Legislature passes luxury tax bill

A new law, commonly known as the luxury tax bill, was passed by the Legislature on 15 April 2011. With an aim to stabilize the real estate market and ensure fair taxation in Taiwan, the bill would levy sales taxes on transactions involving non-self use properties.

Properties sold within one year of purchase will be subject to a 15% tax, while a lower tax rate of 10% will apply to properties resold within two years. Revenues generated by the new tax would go towards social welfare programs, according to the Ministry of Finance. While the date of implementation is to be decided by the Cabinet, it has been expected that the new regulations could take effect as early as 1 June 2011.


Source: CBRE WEEKLY MARKET SNAPSHOT, 22 April 2011

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