Lawmakers across party lines yesterday agreed to July 1 as the provisional date on which a draft amendment to the Income Tax Act (所得稅法) is to come into effect, with the aim of curbing real-estate speculation.
The consensus was reached following interparty negotiations at the legislature’s Finance Committee to determine when revisions to the “integrated house and land transaction income tax” would take effect.
The committee on Monday last week passed a number of revisions to the act, but failed to agree on when they would take effect.
Under the proposed revisions, the tax would be set at 45 percent of gains on the sale of property within two years of purchase and 35 percent of gains on property sales made within two to five years of purchase.
For foreign nationals and companies, the tax rate on property sales would be 35 percent on any property held for more than two years.
The same tax rate would be imposed on individuals and businesses to prevent individuals from setting up companies to buy and sell property, and paying only 20 percent corporate income tax on gains.
At present, the integrated house and land transaction income tax rate is 45 percent of gains on sales of property made within a year of purchase and 35 percent of gains on sales of property made within one to two years of purchase — but those rates only apply to individuals.
The revisions also widen the scope of properties to which the tax applies.
For example, the tax currently applies only to transactions of existing residential properties not considered to be for “self-use,” whereas the new measure would also apply to the sale of presale homes, above-ground use of land rights (superficies) and special shareholdings.
The measures would be applied retroactively to transactions from 2016.
Lawmakers also agreed to add a clause to the revisions in which individuals and businesses given a share of a land or property as a result of urban renewal projects would enjoy a 20 percent tax on gains made from property sales made within five years.
The proposed revisions have been sent to the legislature’s plenary session for discussion.
The integrated house and land transaction income tax was introduced in 2016 to reduce property speculation, especially in the residential property market.
The latest measures have been proposed as the property market heats up at a time of high liquidity and low interest rates.
WALKING AWAY: At one point the world’s No. 3 smartphone brand, LG has fallen from a position as a market leader after a series of software and hardware mishaps South Korea’s LG Electronics Inc is to wind down its loss-making mobile division after failing to find a buyer, a move that would make it the first major smartphone brand to completely withdraw from the market. Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by Samsung Electronics Co and Apple Inc with its domestic rival expected to have the edge. “In the United States, LG has targeted mid-priced — if not ultra-low — models and that means Samsung, which has more mid-priced product lines than
SPECULATION: The integrated house and land transaction income tax has been amended as the real-estate market heats up because of high liquidity and low interest rates Lawmakers across party lines yesterday agreed to July 1 as the provisional date on which a draft amendment to the Income Tax Act (所得稅法) is to come into effect, with the aim of curbing real-estate speculation. The consensus was reached following interparty negotiations at the legislature’s Finance Committee to determine when revisions to the “integrated house and land transaction income tax” would take effect. The committee on Monday last week passed a number of revisions to the act, but failed to agree on when they would take effect. Under the proposed revisions, the tax would be set at 45 percent
TAICHUNG PLANT: An official said that generator No. 3 had been retrofitted and it generates 0.46g of particulate pollution per kilowatt-hour, down from 0.6g to 0.7g A spike in demand for electricity made it necessary to restart the third coal-fired generator at the Taichung Power Plant, Taiwan Power Co (Taipower, 台電) said yesterday as a feud with the Taichung City Government lingers. Taichung Mayor Lu Shiow-yen (盧秀燕) has sought to keep the generator from being used. In 2019, he revoked Taipower’s license to operate the generator. However, the state-run utility has taken the city government to court over the license revocation and won the case in February last year, Taipower manager Chang Ting-shu (張廷抒) said. “We would like to remind the Taichung City Government that operation of the third
Several hundred people have already booked their tickets and begun training for a spectacular voyage: a few minutes, or perhaps days, in the weightlessness of space. The mainly wealthy first-time space travelers are preparing to take part in one of several private missions which are preparing to launch. The era of space tourism is on the horizon 60 years after Soviet cosmonaut Yuri Gagarin became the first person in space. Two companies, Virgin Galactic and Blue Origin LLC, are building spacecraft capable of sending private clients on suborbital flights to the edge of space lasting several minutes. Glenn King is the director of