2011-04-18
Luxury Tax Might Take Effect Early
According to Taiwan’s Premier, the Luxury tax that will apply per the Selective Goods and Services Sales Tax Act (特種貨物及勞務稅條例) is currently sailing through the Legislative Yuan. The effective date will be decided by the Executive Yuan, and some expect that it may take effect on 1 June 2011, much earlier than originally expected.
Under the Selective Goods and Services Sales Tax Act (特種貨物及勞務稅條例) (“Act”), presale house transactions are not included in the scope of the luxury tax. According to the Minister of Finance, although the luxury tax does not cover presale house transactions, the tax authorities will aggressively audit tax reports in connection with presale houses transactions. In any event, it is possible that presale house transactions might be moved within the scope of luxury tax by future amendment of the Act.
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