Taiwan approves 'rich man's tax'
Publish Date: May 17, 2014
Taiwan approves 'rich man's tax'
A general view of a busy street in Taipei, Taiwan. PHOTO/AFP
  • mail
  • img

TAIPEI - Taiwan's parliament has approved a so-called "rich man's tax" on nearly 10,000 of the island's wealthiest people in a bid to narrow the widening income gap.

Starting next year, those with annual net income of over Tw$10 million ($333,000), or the richest 1.5 percent of individuals or families, will be subject to a 45 percent income tax rate, up from the current 40 percent, said the finance ministry.

The revised income tax law passed by parliament Friday also includes business tax hikes on banks and insurers as well as more tax deductions for low-income families, salarymen and the disabled, the ministry said.

It is expected to generate an extra Tw$65 billion more a year in revenue for the government, including Tw$9.9 billion from the richest people as well as around Tw$20 billion from the banking and insurance sectors.

Finance minister Chang Sheng-ford has said that the taxation reform was aimed at improving income distribution and was backed by tycoons such as Foxconn Group founder Terry Gou.

Taiwan's income gap reached a record level in 2011, as the wealthiest families earned 96 times more than the poorest, according to the latest official data.

The bottom five percent of families reported an average annual income of Tw$48,000, compared with Tw$4.63 million earned by the top five percent in 2011, based on their income tax filings.

Observers have blamed the rapidly widening gap between the rich and the poor as one of the reasons behind a recent string of anti-government protests.


The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Polls open in Portugal
PORTUGUESE voters began casting their ballots, choosing between the incumbent centre-right coalition that steered the country through a punishing bailout...
Former Singapore prisoner nominated for Nobel Peace Prize
Singapore dissidents nominate the city state''s longest-held political prisoner for the Nobel Peace Prize....
S. Sudan
An earth bank surrounds the United Nations peacekeeping base outside Bentiu in South Sudan....
Merkel tops speculation on scooping Nobel Peace Prize
German Chancellor Angela Merkel could win this year's Nobel Peace Prize, a media report said Friday, amid speculation her response to Europe's migrant crisis could be recognised by the prestigious jury next week....
NATO launches biggest military exercise since 2002
NATO launches its biggest military exercise since 2002 on Saturday, putting 36,000 alliance soldiers through their paces in Italy, Spain and Portugal to boost preparedness against the backof the Ukraine crisis....
S. Sudan
The vice president urges the UN not to impose "undeserved" sanctions against leaders working to implement a peace deal....
Should sachet waragi be banned?
Can't Say
follow us
subscribe to our news letter