Tax Collections Diminish in Taiwan

September 11, 2013 Taxation in Taiwan

TaipeiTAIPEI – Tax collections in Taiwan have fallen over the course of this year, and it seems unlikely that the situation will change in the remaining month of 2013.

Over the first eight month of the year the government of Taiwan collected TWD 1.22 trillion in taxes, down 1.1 percent compared to the same period last year, according to information in a new statement issued by the Ministry of Finance on September 11th.

Tax collections over the month of August were also down by approximately 8.4 percent compared to the same period last year, reaching TWD 91.21 billion.

The decreasing tax collections are casting doubt on whether the government of Taiwan will reach its own budgetary goal to bring in TWD 1.86 trillion by the end of 2013.

The decrease in the tax collections has been attributed to below-par national economic conditions in 2013, and a subsequent decline in revenues from individual income tax, corporate income tax, securities transaction tax, and futures transaction tax, which fell by 3.2 percent, 8.4 percent, 6.2 percent and 34.3 percent receptively over the course of the year.

Commenting on the results and providing an outlook for the rest of the year, the deputy director of the statistics department of the Ministry of Finance Hsu Ray-lin said that recent instability in the economy means that “…it will not be a bad result if tax revenue collected in the rest of the year remains flat compared to a year ago.”

Photo by umm