Taiwan’s Parliament has approved a law called rich man’s tax on nearly 10,000 of the country’s wealthiest people to address the wide income gap between the rich and poor.
Under the proposed law, those with annual net income of over TWD$10 million ($333,000), or the richest 1.5% of individuals or families, will be subject to a 45% income tax rate from next year.
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Taiwan’s finance ministry said that revised income tax law will also include business tax hikes on banks and insurers as well as more tax deductions for low-income families, salary men and the disabled.
The new tax law is expected to generate an extra TWD$65 billion more a year in revenue for the government, including TWD$9.9 billion from richest people and around TWD$20 billion from the banking and insurance sectors.
Finance minister Chang Sheng-ford said that the new structure, backed by tycoons such as Foxconn Group founder Terry Gou, will enhance income distribution.
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By GlobalData
