Taipei, September 12, 2025 — Taiwan’s overall tax revenue declined in August, but stronger collections from individual income tax and the securities transaction tax helped soften the impact, the Ministry of Finance announced Thursday.
The ministry reported net tax revenue of NT$153.7 billion (US$5.06 billion) for the month, marking a 10% drop compared to the same period last year. The shortfall was largely attributed to weaker business tax, gift tax, and corporate income tax collections.
Income Tax Boost Offsets Declines
Despite the overall dip, individual income tax revenue increased by NT$4.6 billion, reaching NT$82.9 billion in August, a 5.9% year-on-year growth. From January to August, cumulative collections stood at NT$703.3 billion, representing a 5.4% rise from last year. The gains were mainly driven by higher withholdings on dividends and wages.
In contrast, corporate income tax dropped sharply in August to NT$6.6 billion, a 39.5% decline year-on-year, as major refund cases reduced net revenue. Over the first eight months of the year, corporate income tax collections totaled NT$642.1 billion, down 4.2% from a year earlier. Officials said this was despite higher voluntary payments, as deferred installments tied to U.S. tariff measures limited overall receipts.
Business and Securities Tax Trends
Business tax revenue slipped by NT$7.2 billion in August. The decline was linked to lower import taxes on chemicals and metals, alongside increased zero-rated export refunds, even as domestic demand remained stable.
On the other hand, the securities transaction tax provided a significant boost. Fueled by strong market activity, daily turnover on the Taiwan Stock Exchange averaged NT$553.3 billion in August, a 17.2% increase year-on-year. This lifted securities transaction tax collections to NT$27.7 billion, up 8.1% from the previous year.
Year-to-Date Performance
From January through August, Taiwan’s total tax revenue reached NT$2.45 trillion, covering 93% of the allocated budget and 64.6% of the full-year target. However, the figure was NT$66.1 billion (2.6%) lower than the same period in 2024.
The ministry noted that while certain tax categories underperformed, the growth in individual income tax and securities transaction tax eased fiscal pressures and underscored resilient segments of Taiwan’s economy.
