Prospects

National Treasury Affairs

1. Strengthening of the financial planning of public infrastructure projects, enhancement of the financial performance of the projects, and use of available national financial resources to accelerate the completion of major public infrastructure projects.

2. Strengthening of the management of the public debt; raising of funds for national construction projects.

3. Amendment of the Public Debt Act in order to cope with the adjustment of administrative divisions and to fulfill the goal of public debt control.

4. Strengthening of the operational procedures of treasury centralized payment; raising of the financial efficiency of the government.

5. Promotion of the amendment of the Act Governing the Allocation of Government Revenues and Expenditures and adoption of a matching mechanism to ensure an increase in the financial resources of local government before the completion of the amendment.

6. Implementation of a user-charge and fee system to promote a fair financial burden.

7. Amendment of treasury policy and rules in response to changes in the social-economic environment in order to complete the national treasury system.

8. Promotion of “The Program for Improving the Efficiency of Government Finance” in co-operation with other agencies.

9. Promotion of the amendment of the Tobacco and Alcohol Administration Act and the relevant regulations; raising of the efficiency of tobacco and alcohol administration; provision of assistance in the development of the alcohol product industry; and enforcement of the inspection and seizure of illegal products.

10. Continuation of the handling of the managerial affairs of the government’s shareholdings, and strengthening of the efficient management of national assets through the operations of the Government Shareholding Management and Supervisory Unit under the Executive Yuan, so as to increase the benefits to the national treasury.

11. Strengthening of the assistance provided to local governments to enhance local fiscal adequacy and autonomy.

12. Enhancement of the cash and information flow operations for taxes collected by financial institutions to improve the efficiency of public treasury and tax administration.

13. Implementation of a sound public welfare lottery industry promotion program to stabilize the sources of funding for social welfare activities.

14. Control of the information of financial revenues and expenditures so as to be in accordance with the schedule for the implementation of policy and to improve efficiency in the utilization of funds.

15. Promotion of “The Medium and Long-Term Program for Achieving Sound Finance”.

Internal Tax Administration

1. In order to relieve the burden of submitting the certificates, relevant statements or other documents to the tax collection authority-in-charge before or on the last day of January of each year and to increase the accuracy of the information on income, the amendments of Articles 89, 92, 92-1, and 102-1 of the Income Tax Act were approved by the Legislative Yuan on 14th December, 2011 whereby in the case that three national holidays occur in immediate succession in January, the period for the submission of the aforementioned data shall be extended to 5th February and the period of the issuance of the certificates to taxpayers concerned shall be extended to 15th February. These amendments to the Income Tax Act were promulgated on 4th January, 2012.

2. In order to provide a clear legal basis for taxation on completely electric-operated vehicles and other kinds of power-operated vehicles in the future as well as to encourage the use of less polluting vehicles, “The Table of Rates for Completely Electric-Operated Small Passenger Vehicles” and “The Table of Rates for Completely Electric-Operated Motorcycles” were enacted. The municipal or county (city) government is authorized to exempt vehicle license tax on entirely electric-operated vehicles. The amendments of Article 5 and Tables 4 and 5 of Article 6 of the Vehicle License Tax Act were passed by the Legislative Yuan on 14th December, 2011 and promulgated on 4th January, 2012.

3. Interpretation No. 687 of the Judicial Yuan on 27th May, 2011 explained that Paragraph 1, Article 47 of the Tax Collection Act regarding the provision of imprisonment sentences is against the principle of equality of Article 7 of the Constitution of the Republic of China and thus the provision of the aforesaid paragraph shall be void no later than the expiry of one year from the date of promulgation of this interpretation.In order to serve the intention of the above interpretation, the MOF proposed the amendment of Article 47 of the Tax Collection Act. The proposed amendment passed its third reading in the Legislative Yuan on 14th December, 2011 and was promulgated on 4th January, 2012.

4. Continuous adoption of measures to curb tax evasion so as to increase tax compliance.

5. In order to provide further excellent tax payment service, the MOF implemented a service whereby taxpayers may pay tax via e-transaction from current or savings accounts to begin in 2012. The service will be implemented in phases. In the first phase, taxpayers may pay the vehicle license tax, house tax and land value tax online during the levy period.

Customs Administration

1. Continuation of the advancement of international Customs co-operation, establishment of substantive multilateral and bilateral relationships to co-operate in the exchange of information and in taking action against customs offenses.

2. Amendment of laws and regulations to simplify customs procedures and facilitate trade.

3. Implementation of anti-dumping measures to maintain fair trade and industrial development.

4. Temporary reduction of customs tariffs to cope with changes in the domestic and international economy.

5. Enlargement of the operational function of bonded areas to promote efficiency in such areas.

Management of National Property

1. Comprehensive review of current laws and regulations, simplification of operating procedures, increase in administrative efficiency, and implementation of convenient services for the public.

2. Positive action in clearing up occupied national land, to be managed normally or to be retrieved after vacation, in order to maintain the rights of national properties.

3. Establishment of the “Principles for buying back national non-public use properties that are sold at the original price.” The national land of a certain scale in an urban planning area must be utilized (obtain construction permits and begin construction) with in two years (three years if the land needs to go through the procedures of urban design review) after having been sold. The National Property Administration can buy back the national land that is not utilized in two years to prevent the possession of the land from being a measure by which business persons involved in construction may drive up the price of the land, and to increase efficiency in the use of national lands that are sold.

4. Loosening of related regulations to encourage selling, rental and consigned operation, use of simple collaboration and other, multi-faceted methods in cases of the handling of national land; creation of superficies on national land, urban renewal, improvements in the utilization in order to fulfill the land requirements of private corporations.

5. Strengthening of co-operation between local governments and the competent authorities in charge of specific business to make good use of national land resources, and promote the construction of public facilities.

6. Operation of the “National Property Development Fund,” positive promotion of large-scale national land development, specific selection of the right time for development, and implementation of flexible financial management.