Allianz Taiwan Life Insurance Co (安聯人壽) yesterday restated its objection to the government’s plan to tax investment-linked insurance policyholders, saying the proposed change should go through the legislative process before being instituted.
Allianz CEO Chris James, also chairman of the insurance committee of the European Chamber of Commerce Taipei, described the plan a mistake that could discourage long-term investment.
The Cabinet’s Tax Reform Committee reached a consensus last month to impose income, gift and inheritance taxes on investment-linked insurance policies to close a longstanding loophole that allows for tax evasion.
CABINET APPROVAL
The proposal, which must be approved by the Executive Yuan, is likely to take effect next year after the Financial Supervisory Commission draws up details for its implementation.
James said investment-linked products offer customers flexible and cost-efficient life insurance and savings as an alternative to the more opaque traditional products.
However, Minister of Finance Lee Sush-der (李述德) said last month the proposed change would have limited impact, as existing policies will not be affected and only gains above exemption thresholds would be taxed.
James said he would keep trying to reverse the proposal through proper channels.
Despite the complaint, Allianz Taiwan Life set up a customer service center yesterday to better serve customers and mark its 10th anniversary.
The company said it intended to add 1,000 agents to its payroll this year to boost its presence in Taiwan.
PROPERTY
James said the local property market offered promising business potential amid warming trade ties with China, and the company would not rule out taping the potential after reviewing its asset allocation plan.
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