As of October of fiscal year 2023, Centrally-Funded Tax Revenues have been well-executed, contributing to the advancement of local government affairs.
The National Treasury Administration (NTA), Ministry of Finance, stated that as of October in the fiscal year 2023, the cumulative actual revenue of Centrally-Funded Tax Revenues amounted to 357.3 billion TWD. The execution rate against the budget is 101.8%, exceeding the original estimated annual revenue by 6.4 billion TWD. Of this, 5.9 billion TWD pertains to General Centrally-Funded Tax Revenues, and the execution performance is favorable.
According to the Act Governing the Allocation of Government Revenues and Expenditures, the sources of the Centrally-Funded Tax Revenues include: 10% each from income tax revenue and commodity tax revenue, 40% of total business tax revenue minus the uniform invoice prize fund, appropriated in accordance with relevant regulations, and 20% of land value increment tax revenue collected in counties and cities. In terms of the execution results of the aforementioned Centrally-Funded Tax Revenues, the budget achievement rates for the national tax components are 108% for income tax, 87% for commodity tax, and 98% for business tax. However, the achievement rate for the local tax component, the land value increment tax collected in counties and cities, is slightly lower at 59%.
The NTA further stated that Centrally-Funded Tax Revenues belongs to the tax revenue of the local governments that receive the allocation and should be disbursed based on actual revenue. During the fiscal year, disbursements are generally made on a monthly basis according to the budgeted allocation notice. If the actual revenue exceeds the budgeted allocation notice, then after the budget reconciliation period ends (by January 15th of the following year), distribution is calculated according to a formula, and the 13th disbursement operation is carried out. The actual amount available for the 13th disbursement for the current fiscal year will be determined after the budget reconciliation period ends on January 15th, 2023. The NTA will promptly carry out the disbursement operation at that time to facilitate the the year-end financial planning of local governments.
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=b0ae965583204df8972c583cc1cee177