TAIPEI (Taiwan News) — The Ministry of Finance said Monday that Taiwan's entertainment tax revenue from performances reached NT$286 million (US$ 9.08 million) last year.
The number of entertainment tax filings from performances was 2.2 times higher last year than in 2021, with tax revenue rising more than sixfold. The ministry attributed the surge to a wave of large-scale concerts held by artists following the COVID-19 pandemic, per CNA.
The ministry on Monday released a report on Taiwan’s entertainment tax collection and revenue sources over the past decade. It said that local governments may levy entertainment taxes on activities such as movies, concerts, karaoke, arcade machines, claw machines, and golf.
Last year, around 21,400 businesses in Taiwan were subject to entertainment tax, generating nearly NT$2.1 billion in revenue. In 2021, due to COVID-19 restrictions and nationwide alert levels, most regions suspended or reduced entertainment tax collection, causing the number of taxable businesses to drop to about 18,600.
Compared with 2021, the number of taxable karaoke venues and amusement parks increased by 25.6% and 16.3% respectively last year, the ministry said. However, tax revenue from internet cafes and movie theaters declined. The agency attributed the decrease partly to the prevalence of smartphones and tablets, as well as the popularity of live streaming platforms.
Last year, Taichung accounted for the highest share of businesses subject to entertainment tax at 13.4%, followed by New Taipei at 11.6% and Taipei at 10.5%, the ministry said. Taiwan’s six major cities made up about 60% of the nation’s entertainment tax filings. In terms of revenue, New Taipei led with nearly 17%, followed by Taoyuan at 14.2% and Taipei at 13.8%.
The ministry said that in New Taipei, claw machines, golf, and karaoke were the main sources of entertainment tax revenue. In Taipei, concerts, KTV, and movies made up the largest share. Golf accounted for around 60% of entertainment tax revenue in Taoyuan, while claw machines were the primary source in Taichung.
Pachinko parlors were the largest source of entertainment tax revenue in Tainan last year. In Kaohsiung, karaoke was the main source of tax revenue from 2021 to 2023, but concerts became the city’s primary source last year.
