Proposed Luxury Tax

The MOF is drafting a bill that could see the implementation of a luxury tax aimed at narrowing the gap between the haves and have nots and curbing real estate speculation.

Among the items proposed are: [quote]…a 10% tax on purchases of luxury items such as cars, yachts, and private jets valued at more than NT$3 million (about US$101,600); fur and leather products and designer furniture valued at NT$500,000 (about US$16,860) or more; and business and golf club memberships worth more than NT$500,000.[/quote]

It would also impose [quote]…a tax of 15% on the actual sales price of real estate (including land and non-self-use housing units) sold within less than one year of purchase and a tax of 10% on properties held for at least two years.[/quote]

I can see the value in doing this, since it is pretty obvious that the real estate market is more than a little awash with speculation but, damn, that would certainly make me reconsider ever buying a second house here…Suppose the way around it for a lot of locals would be to put the house in a dependent’s name. Something like, “Sure, he’s just a toddler, but 265 pings on Zhongxiao E. Rd Section 4 is just what he needs!”

More about it here: loc.gov/lawweb/servlet/lloc_ … _2554_text

Actually these taxes are just for show and will be easily avoidable for many of the well heeled.
Tax transactions within 1 year? Well it’s not a big deal for these guys to flip after one year is it.
Tax club membership over 500000, again they will just call it something else but not membership. No tax on the things they really value like LV bags etc.
Luxury cars? Anybody who can buy one of those is not going to be worrying about a little tax.

At the moment all property/land is taxed at a rate much lower than the real market price. This is known by practically everybody but they haven’t done anything abou it…hence ‘just for show’.