Luxury tax on yacht sales adjusted to develop base of local customers


CNA

TAIPEI — The Legislative Yuan passed an amendment to the luxury tax law Tuesday that could make it less costly for Taiwan residents to buy a yacht built at home.

According to the revised Specifically Selected Goods and Services Tax Act, the 10 percent luxury tax will only apply to the sale of yachts that are at least 30.48 meters, or 100 feet, long, a change from the previous practice of imposing the tax on sales of yachts of a certain value.

Previously, the sales tax on luxury items was imposed on any yacht with a selling price or taxable value of NT$3 million (US$94,937) or more.

The change has been made to reduce the tax’s impact on domestic shipbuilders.

According to the Ministry of Economic Affairs, most yachts manufactured by Taiwanese shipbuilders for domestic sales are under 100 feet, while larger ones are mainly for export.

Since the luxury tax was introduced in 2011, six yachts �X three domestically built and three imported �X have been taxed a total of NT$7 million, the Ministry of Finance said.

The Legislature also passed another amendment to the law to expand targets of the luxury tax to include industrial land in non-urban areas that can be used for construction purposes and has been held for no more than two years.