TAIPEI (TVBS News) — The Ministry of Finance (MOF, 財政部) on Friday (Jan. 24) announced that Taiwan's tax-to-GDP ratio for 2024 is estimated to be 14.7%, marking the highest level in 26 years. This increase of 0.1 percentage points reflects the nation's evolving fiscal landscape.
The figure surpasses Singapore's 2023 ratio of 13.7% but remains below Japan's 21.2%, the United States' 19.1%, and South Korea's 20.4%. According to the government's census and statistics department, the average tax burden per capita in 2024 is estimated at NT$159,348, setting a new record high.
This amount represents an increase of NT$11,478 from 2023. Due to Taiwan's policy of maintaining a simplified and low-tax system, a tax-to-GDP ratio of 14.7% is estimated, excluding social security contributions. This figure is lower than the 16.5% average of the 1980s and 1990s.
Social security contributions in Taiwan reached NT$1.39 trillion in 2023, an increase of NT$37.3 billion or 2.8% compared to 2022. Including these contributions, Taiwan's 2023 tax-to-GDP ratio stood at 20.5%, which is lower than Japan's 34.4%, South Korea's 28.9%, the United States' 25.2%, Germany's 38.1%, the Netherlands' 38.5%, France's 43.8%, and Italy's 42.8%.
These developments highlight Taiwan's unique fiscal approach amid global trends. As the nation progresses, monitoring how these figures influence economic policy and social welfare will be essential.