The Ministry of Finance (MOF) has reached some consensuses with taxation experts on a new capital gains surcharge for property transactions, with plans to send a draft proposal to the legislature next year.
“All participants basically agreed with the proposal to impose a capital gains surcharge on property transactions involving both homes and land,” Minister of Finance Chang Sheng-ford (張盛和) told a media briefing on Thursday after a conference attended by 10 taxation experts from academia.
The consensuses includes taxes on transactions of properties held for a long time, as well as on self-use homes and farmhouses, Chang said.
To impose the planned tax, the ministry is to devise a formula to calculate the value of homes for sale, unless property owners can provide evidences of how much they paid for their properties, Chang added.
Experts also supported the ministry’s view that the levy on land value increment taxes should be maintained, with the tax amount allowed to be deducted from the declaration amount of consolidated income tax, according to Chang.
However, Chang said that ministry and taxation experts have not yet reached a conclusion on how to tax the capital gains on property transactions, with some supporting the view that a separate taxation system should be adopted, while others advocate its combination into the consolidated income tax.
Whether the luxury tax — also known as the special sales tax on selected goods and services — should be abolished after the implementation of the new measure remained an issue, Chang said, adding that lowering the tax rate may also be an option.
To gain more input from the public, the ministry is scheduled to hold another conference next month, that is to be attended by professionals from private groups and industry.
Chang said the ministry would do its best to follow the original plan to send the draft proposal to the legislature in the first legislative session next year, but added that the reform was an important and unprecedented plan that would be launched with caution.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a