2015 tax revenue reaches record high in Taiwan

2015 tax revenue reaches record high in Taiwan

Tax revenue came in at a historic high of NT$2.1184 trillion (S$91 billion) last year, nearly half of which was individual income tax and profit-seeking enterprise income tax.

Total income from levies reached NT$2.1184 trillion in 2015, marking a year-on-year increase of 7.2 per cent, or NT$142.3 billion, according to a preliminary report that the Ministry of Finance (MOF) released on Tuesday.

Hsu Ray-lin, deputy director of the Finance Ministry's statistics department, said that the annual revenue had reached the NT$2-trillion mark for the first time in Taiwan history.

The total also overshot the ministry's forecast for 2015 by at least NT$173.1 billion, which should adjust to about NT$180 billion when all December tax returns are paid in full, Hsu said.

Annual Tax Report

According to the MOF's preliminary report, revenue from the securities transaction tax in 2015 hit well below target at NT$81.9 billion, which represents a year-on-year decrease of 7.6 per cent or NT$6.8 billion.

But in 2015, income from the profit-seeking enterprise income tax, the individual income tax, commodity tax, land value increment tax, estate and gift tax, house tax and vehicle license tax all stood at new heights.

Land value increment tax climbed NT$11.8 billion to reach NT$113.5 billion, the most since 1999.

Revenue from the profit-seeking enterprise income tax totaled NT$461.2 billion in 2015, up 14.5 per cent or NT$58.5 billion from the preceding year. Revenue from the individual income tax was at NT$472.7 billion in 2015, up 15.1 per cent or NT$61.9 billion from 2014.

Income from the two taxes accounted for about 44.1 per cent of the total tax revenue from last year.

December Revenue Up on Land Value Increment Tax

For December last year, net tax revenue stood at NT$124.809 billion, up NT$3.213 billion or 2.6 per cent year-on-year from December 2014.

The Finance Ministry said the rise in revenue was led by a surge in income from the land value increment tax, which rose to NT$23.7 billion in December.

In December, land value increment tax revenue was up 1.4 times or NT$13.8 billion year-on-year - the greatest single-month jump in 23 years, according to the ministry.

In December, Taiwan sellers filed 112,072 land value increment tax returns, 72 per cent or 46,904 more compared to figures in the same month one year earlier.

"It has truly exceeded our forecasts," Hsu said.

The Finance Ministry on Tuesday attributed the revenue increase to end-of-year property market trends, a rise in land price and a new integrated house and land sales taxation system that was scheduled to start Jan. 1.

December saw a strong selling trend as property owners rushed to file land taxes before the new system took effect, according to Hsu.

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