October Net Revenue of NT$566.9 Billion Hits Monthly Record
The Ministry of Finance reported October national net tax revenue of NT$566.9 billion, a record high for October, up 35.8% year-on-year. Net revenue for the first 10 months was NT$4.1383 trillion, also a record high for the same period, up 25.8% year-on-year. The Ministry estimates that, driven by increased final income tax self-payments and provisional tax payments as well as an active stock market, total annual tax revenue will exceed the budget by NT$110 billion to NT$160 billion.
Taiwan Stocks Fall in Price but Rise in Volume, Securities Transaction Tax Posts 15th Straight Month of Growth
In October, Taiwan stocks overall showed a pattern of rising first then falling, with prices down and volume up. Liu Xun-rong, Deputy Director of the Department of Statistics, Ministry of Finance, said that even as market wait-and-see and hedging sentiment heated up, the index closed at 40,0005212 points at month-end, down about 2,728 points from September, the third-largest monthly drop on record. Average daily trading value reached NT$1 trillion 1210 hundred million, ending three consecutive months of decline, up 8.7% month-on-month and 78.9% year-on-year, possibly related to heavy selling by foreign investors and profit-taking by some investors.
Affected by holidays and typhoon holidays in October, there was one fewer trading day than in September. Net securities transaction tax revenue was NT$52.3 billion, down 2% month-on-month, falling for four consecutive months, but up 72.6% year-on-year, marking 15 consecutive months of positive growth and also a record high for October. Securities transaction tax revenue for the first 10 months was NT$558.3 billion, continuing a record high for the same period, up 1.4 times year-on-year. In other tax categories, October corporate income tax, individual income tax, and futures transaction tax all hit record highs for October; for the first 10 months, customs duties, corporate income tax, individual income tax, estate tax, futures transaction tax, business tax, house tax, and stamp tax hit record highs for the same period.
Compared with the same month last year, in addition to a NT$22 billion increase in securities transaction tax, corporate income tax increased by NT$113.3 billion and individual income tax by NT$12 billion, with the former reflecting growth in provisional tax payments, up 37.6% year-on-year, and the latter mainly due to increased withholding tax payments, up 24.3% year-on-year. In the first 10 months, central government net tax revenue was NT$2.8579 trillion, up 15.8% year-on-year, accounting for 92.8% of the annual budget; local government net tax revenue was NT$1.1487 trillion, up 68.5% year-on-year, accounting for 87.7% of the annual budget.
Full-Year Surplus Seen Up to NT$160 Billion, Land Value Increment Tax May Miss Target
Looking ahead to November and December, this year's 7.7% year-on-year increase in dividend payouts will gradually be reflected in income tax withholding payments, but sharp volatility in Taiwan stocks and changes in the international political and economic situation may still affect subsequent stock market turnover and securities transaction tax revenue. Liu Xun-rong said that based on the high and low levels of the past three years and preliminary estimates using the central-local allocation ratios under the new fiscal revenue and expenditure division law, total national tax revenue for the year will exceed the budget by NT$110 billion to NT$160 billion, with the central government estimated to exceed by NT$30 billion to NT$60 billion and local governments by NT$70 billion to NT$100 billion. Affected by housing and auto market conditions, the land value increment tax and luxury tax are assessed as less likely to meet their targets.