INTEGRATED LEVY:The proposal sets different taxation rates based on length of ownership. Analysts said it could be another blow to a sluggish property market
Date: May 14, 2015
By: Crystal Hsu / Staff reporter
The Cabinet yesterday approved a draft integrated house and land sales tax with a maximum rate of 45 percent, as part of the government’s move to create a more rational taxation system and curb property speculation.
The latest proposal, which the Cabinet hopes will take effect next year after approval by the legislature, could pour cold water on an already-sluggish market, industry insiders said.
The draft plan now seeks to impose an income tax rate of between 15 percent and 45 percent on gains from selling houses or land depending on the duration of ownership.
Houses sold within one year of purchase would be subject to a tax rate of 45 percent of the trading gain, with the rate easing to 35 percent for houses owned for two years, 20 percent for 10 years and 15 percent for ownership in excess of a decade, according to the proposal. [FULL STORY]