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Taiwan considers business tax reduction for financial sector

Taiwan's Minister of Finance, Chuang Tsui-yun, announced that the Ministry of Finance is open to discussing the proposal of the Financial Supervisory Commission (FSC) to lower the business tax on the financial industry. Since a hike in 2014, banks and insurance companies have been taxed at a rate of 5%, with a portion dedicated to a reserve fund meant to mitigate risks. The fund has accrued around NTD216.2bn (USD6.71bn) since its inception. As the current provision nears expiration, FSC Chairman, Thomas Huang, expressed a desire to revert the tax rate to its pre-2014 level of 2%. Reducing the rate could save the financial sector between NTD25-30bn annually. The Ministry pledged to review the implications of the FSC's proposal and will deliver a report within a month.


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