Finance minister outlines 2 possible plans for taxing gains made on property sales
By Camaron Kao,The China Post
June 22, 2012, 2:01 am TWN
Finance Minister Chang Sheng-ford (張盛和) stated Wednesday that to tax income from property, the ministry can choose either to raise the announced current land value in the land value increment tax or to tax short-term land transaction after the implementation of a law requiring the recording of actual sale prices.
Chang further stated that it is difficult to implement a property income tax in Taiwan because the constitution has to be amended before making any changes to the current property tax.
According to the minister, houses and land are subject to different tax regulations under current tax laws. Thus, it is better to implement a property income tax after combining land and houses under a unified tax regulation and the enforcement of the recording of actual selling prices.
Chang said there is no return likely for the stock gains tax. "Voices of fairer taxation would arise if the tax reform stops abruptly."
Chang stated that the president has given instruction that the draft should be ratified by July and the version proposed by Kuomintang Legislator Tsai Cheng-yuan (蔡正元) should be the basis of the final version.
The weighted index has been up in 11 days and down in three days since Chang took office. Thus, the minister is convinced that the stock gains tax is no longer a critical influence on the stock market.