The nation collected NT$2.12 trillion (US$62.97 billion) in tax revenues last year, an increase of 7.2 percent from 2014, aided in part by a last-minute surge in property transactions, the Ministry of Finance said yesterday.
Property taxes totaled NT$2.36 billion last month alone, more than double the level a year earlier, from a total of 112,072 transactions, a 72 percent increase over December 2014, statistics department Deputy Director Hsu Ray-lin (許瑞琳) said.
“The sharp increase [in property taxes] is indeed surprising,” Hsu told a news briefing, attributing the rise to a desire by home sellers to avoid having to pay higher taxes on transactions.
Starting this month, capital gains from property transactions are subjected to levies of 15 percent to 45 percent depending on the length of time the owners have had them.
Revenues from property taxes jumped 11.6 percent to NT$113.5 billion last year, despite a sluggish market for the most part of the year, Hsu said.
Corporate income tax grew 14.5 percent to NT$461.2 billion, while personal income tax jumped 15.1 percent to NT$472.7 billion, the ministry’s report showed.
That suggested firms and individuals fared better compared with 2014, despite a global economic slowdown, the ministry said.
Corporate and personal income taxes generated 44.1 percent of overall tax revenues, while total tax revenues beat the budget target by 8.8 percent, the ministry said.
The securities transaction tax remained a drag on activities, generating NT$81.9 billion, a decrease of 7.6 percent from 2014.
The decline came as turnover dropped 2.97 percent year-on-year to NT$94.5 billion a day from NT$97.4 billion in 2014, the ministry said.
Commodity taxes rose 5.3 percent to NT$182.1 billion, attributable to a 13.5 percent increase in the number of imported cars, although overall new car licenses fell 0.7 percent, the ministry said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to