Taiwan's 2013 Tax Burden of 12.6% the Lowest Globally
2014/08/28 | By Judy LiTaiwan's tax revenue-to-GDP or so-called tax burden rate edged down 0.2 of a percentage point from a year earlier to hit the world's lowest of 12.6% in 2013, a new three-year low and the second consecutive annual drop, according to Taiwan's Ministry of Finance (MOF).
MOF indicates that such tax burden rate is one of the indicators of national financial soundness, hence a negative correlation exists between the rate and number of taxpayers or people contributing to national finance. Taiwan's tax burden rate in 2013 was lower than Singapore's 13.8% and 20%-plus of South Korea.
MOF says that last year's low tax burden rate was due to the tax revenue growth lagging that of the nominal GDP, with the former being 2.2% and the latter at 3.4%.
To improve national finances, MOF has implemented measures starting in July to attempt to raise the tax burden rate to exceed 13% this year. (JL)
| Comparison of Tax Burden Rates | |
| Country
| Percentage
|
| Taiwan (2013)
| 12.6
|
| Japan (2011)
| 16.8
|
| S. Korea (2012)
| 20.2
|
| Singapore (2013)
| 13.8
|
| U.K. (2012)
| 28.5
|
| Denmark (2012)
| 47.1
|
| U.S. (2012)
| 18.8
|
| Canada (2012)
| 26.0
|