Rates
Under £200 £200 but under £500 £500 but under £1,000 £1,000 but under £2,500 Over £2,500
No Tax
8% of excess over £200 14% of excess over £500 18% of excess over £1,000 25% of excess over £2,500
It is understood that the Tax to be paid by a productive enterprise shall not be more than 18% of its total annual income.
Commodity Tax
The Commodity Tax is an excise tax levied on an ad valorem basis on specified goods of domestic production or importation. The tax is paid by the manufacturer or the holder of the imported goods. This Commodity Tax varies and there are a number of different rates; any goods manufactured in Taiwan destined for export directly by the manufacturer are exempt from Commodity Tax.
Land Tax
There is a Land Tax executed in the country and in the rural areas this is payable in kind on rice growing land. For land not suitable for rice crop, the tax is levied in cash. The rates of tax and the assessed tax paying value vary with the grades of land and the location.
The urban Land Tax is payable by the owner of the land based on the value of the land within the planning areas. This tax is paid at a fixed rate of 1.5% on official value of land used directly by factories and the progressive rates range from 1.5% to 7% for land used for other purposes.
In addition to this there is a Land Value Increment Tax which is paid on the increased value of land at the time of transfer of ownership. The increased value is the difference between the market value of the land and the amount originally declared or paid by the owner.
There is also a provincial Business Tax-this is a Tax levied on monthly gross business receipts and is applicable to all profit-seeking enterprises. The rate of tax is 0·6% on the buying and selling of manufactured goods; 1·5% on transportation and other services; 3% on warehousing and banking and 4% on trust and notary insurance, etc.
Exemptions are allowed on the transactions of producers who pay Com- modity Tax and on those of consumers' co-operatives and philanthropical institutions.
In the case of foreign profit-seeking companies which have no branch office or agent in Taiwan, these companies are exempt from tax and any business originating in Taiwan. Should this undertaking have its headquarters or principal office in Taiwan and maintain branch offices abroad, a tax is imposed only on the business undertaken in Taiwan and a company is exempt from tax on any goods made for sale abroad.
House Tax
There is a House Tax on the value of a house, either residential or business, irrespective of whether it is leased or used by owners themselves. The tax is
34