The legislature passed amendments to two laws on Thursday, paving the way for a new property sales tax.
On Thursday, Premier Mao Chi-kuo called the amendments a milestone for Taiwan’s tax system. Mao said that the reforms the legislature has approved will stop speculation while protecting homeowners.
Mao said that taxes collected under the new system will be spent on building housing and other social welfare projects.
Under the new rules, set to take effect January 1, the government will impose a tax of 45% on homeowners who sell their homes within a year of buying them. Homeowners who sell before the second year will be taxed at a 35% rate.
After six years of owning a home, all gains under NT$4 million (roughly US$130,000) will be tax free, with a 10% tax imposed on all gains above that. The finance ministry projects that the government will be able to collect NT$4.2 billion (around US$140 million) within the new tax scheme’s first year.