An analysis of property tax in Taiwan compared to Canada, Hong Kong, Korea, the U.S

• Main Authors: Chen,Peng-Yu, 陳鵬宇
• Other Authors: 姜真秀
• Format: Others
• Language: en_US
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/c4v4q7

碩士 === 國立交通大學 === 企業管理碩士學程 === 104 === This study analyzes the tax structure and the reform of real estate in Taiwan, which appears to cause lock-in effect – high housing price but low transaction volume. The historical data show that Taiwan’s real estate market indeed shows the lock-in effect. As a possible cause, the current study analyzes the tax structure of real estate, divided into holding and transfer tax. Compared to transfer tax which the recent reform has dealt with, the holding tax in Taiwan appears low based on very low tax base (i.e. housing price used for calculating tax payment), which makes a holding tax negligible in the end. Thus, the current study compares effective holding tax rate between Taiwan and other countries including Canada, Hong Kong, Korea, and the U.S. to compare the amount of tax payment. The results show that the holding tax in Taiwan is much lower than that of the countries chosen, which may cause house owners to keep the property, resulting both high housing price and low transaction volume in Taiwan