MOF plans to levy heavier tax on speculative housing dealings.
Taipei, Oct. 14, 2010 (CENS) -- In order to dampen realty speculation, the Ministry of Finance (MOF) plans to levy heavier tax on realty assets featuring multiple dealings in a short term (one year) and sales of presold houses by speculators before their completion.
A ranking MOF official noted that the ministry is considering to levy heavier tax on realty assets with multiple dealings in a short term, since such dealings are actually exempt from the land-value increment tax now, due to adjustment of government-assessed current value, the basis for such tax levy, made only once a year.
The official pointed out that it is uncommon for realty assets to undergo multiple dealings in a short term, which is apparently for speculative purpose. To curb such speculative dealings, municipal governments can adjust government-assessed current land value once every month or every quarter, or levy windfall tax on such dealings, according to the official.
The MOF is setting sight on speculators who purchase presold houses and sell them making a killing, even before those houses are constructed, thereby evading all kinds of taxes. The MOF official noted that in the future taxation agencies may check the actual transaction prices for such dealings and use them as the basis for levying land value increment tax, rather than on the basis of government-assessed current value. He pointed out that it is not difficult to pinpoint such dealings, since most construction firms also ban and fine such dealings, a requirement usually included in the transaction contract.
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|Title Annotation:||Taiwan Ministry of Finance|
|Publication:||The Taiwan Economic News|
|Article Type:||Brief article|
|Date:||Oct 14, 2010|
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