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Ministry of Finance considers tax reform to counter property speculation in Taiwan

Amendments to combined building and land tax will take one year to pass

The Minglun social housing project in Taipei City 

The Minglun social housing project in Taipei City  (CNA photo)

TAIPEI (Taiwan News) — The Ministry of Finance said Thursday (Dec. 17) it is considering reforming taxes in order to counter real estate speculation.

Finance Minister Su Jain-rong (蘇建榮) made the remarks after data were released showing that 450,000 people in the country own three apartments or houses, and more than 88,000 own between six and 30 properties, Radio Taiwan International (RTI) reported.

According to regular legal procedures, it will take about one year to complete the necessary amendments to legislation for the combined tax on building and land sales (房地合一稅), Su told lawmakers, as the changes need the approval of both the Cabinet and the Legislative Yuan.

The number of newly acquired properties being sold within two years and thus falling under the 35-percent tax rate has been rising year after year since the introduction of the joint tax in 2016, Su said. The number of such transactions more than doubled from 1,659 in 2016 to 3,359 in 2019, reaching 2,915 by September of this year.

Opposition lawmakers criticized Su, saying the more he attacks speculation, the more the practice increases in importance.

Updated : 2022-01-22 05:18 GMT+08:00