TAIPEI: A total of NT$12.5 billion (US$ 379.87 million) in tax revenues has been collected from land and housing transactions under the luxury tax, since it was introduced in 2011, according to government statistics released Friday.
Over the past five years, 2013 and 2014 saw higher luxury tax revenues, which recorded NT$3.6 billion and NT$3.18 billion, respectively, in tax revenues collected from land and housing transactions, the statistics showed.
The goal of the luxury tax is to cap market speculation, and it has helped stabilize the housing market, said Tseng Ching-der, a manager at Sinyi Realty Inc.’s research department.
The luxury tax will be removed next year, when a new tax will go into effect. Introduced in 2011 in an attempt to keep housing prices in check, the luxury tax levies a 15 percent sales tax on second homes sold within one year of purchase and a 10 percent tax on properties sold between one and two years after they were bought.
In conjunction with the removal of the luxury tax, lawmakers have also passed a tax reform act to take on speculators by imposing a maximum 45 percent capital gains tax on people who sell their homes within one year after purchasing them. The new integrated housing and land tax will come into force Jan. 1, 2016.
