Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

September 26, 2019

Taiwan proposes to repeal Stamp Duty Act

Taiwan’s Executive Yuan passed the proposal to repeal the Stamp Duty Act (the Proposal) on 12 September 2019, as part of the Government’s efforts to reform the tax system and prevent double taxation. The proposal will be forwarded to the Legislature for deliberation before it is finalized.

Under the current law, a stamp duty is imposed on a voucher for “Specified Monetary Receipt,” “Contract to Perform a Specific Job or Task,” “Contract for Sale of Moveable Property,” and “Contract for Sale, Exchange, Donation, or Subdivision of Real Property.” Since each transaction consists of various tax treatments, such as a sale, contract, or acceptance and division of real estate, differing inappropriate applications of tax treatment by the tax authorities and taxpayers have caused numerous disputes and extremely complicated procedures for checking and confirming tax payments have resulted in a large number of audits and collection costs. Further, imposition of the stamp duty often leads to double taxation. It is expected that elimination of the stamp duty will resolve these conflicts.

The Central Government will adopt a “tax reduction and simplification” reform policy1 to mitigate expected local government agencies’ losses of revenue of TWD12 billion (US$388 million) per year. If the proposal is approved by the Legislature, the Central Government will apply this principle and allocate special funds to help local governments cover all revenue shortfalls. These allocations will also be incorporated into the Act Governing the Allocation of Government Revenues and Expenditures to ensure cities and counties do not see unfair decreases in tax revenues.


1. It is designed to motivate economic developments while preventing local government agencies’ losses.

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Taiwan), Taipei
  • Sophie Chou |
  • Anna Tsai |
  • Chien-Hua Yang |
  • Vivian Wu |
Ernst & Young LLP (United States), Taiwan Tax Desk, New York
  • Jerry Tang |
Ernst & Young LLP (United States), Asia Pacific Business Group, New York
  • Chris Finnerty |
  • Kaz Parsch |
  • Bee-Khun Yap | 



The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more