Taiwan - Taxation
All taxes are collected by the local government and transferred to the relevant provincial or central government agency. Tax revenues reserved for the central government include the income tax, estate (inheritance) tax, gift taxes (4% to 50%); customs duty, stamp tax, commodity tax, securities transaction tax, and mine tax. The rates for income tax payment for individuals ranges from 6% to a top rate of 40%. Corporate income taxes range from 0 to 25%. A VAT introduced in April 1986, with a common rate of 5%. Sales taxes are 1% for reinsurance activities; 5% for bank activities, insurance and brokerage services; and 15% to 25% for bars and restaurants. There is a 60% ad valorem merchandise tax on petrol. There are no social security or local income taxes in Taiwan.