The United States has a tax of 20% for Taiwan, and the tax rate is consistent with the 20~25% predicted by CRIF in advance. Since Taiwan does not have sufficient conditions and codes to obtain the same 15% tax rate as Japan, South Korea and the Euro...
The United States has a tax of 20% for Taiwan, and the tax rate is consistent with the 20~25% predicted by CRIF in advance. Since Taiwan does not have sufficient conditions and codes to obtain the same 15% tax rate as Japan, South Korea and the European Union. Although the tax rate of 20% is already a low price, a 20-yuan tax rate for exporting products worth 100 yuan in the United States will be subject to a tax of 20 yuan, which will inevitably cause a certain degree of damage to Taiwan's export industry.
If we look at the gross profit margins of 32 listed companies in Taiwan, the 20% damage to taxes can be divided into three categories: low damage (gross profit margin of more than 25%), medium damage (gross profit margin between 20~25%) and high damage (gross profit margin is lower than 20%). It is not calculated as the financial industry, the average gross profit margins of the overall listed companies in the fourth quarter of last year and the first quarter of this year were only 23.64% and 22.95%.
If each does not include the 31 industries in the financial industry, there are only 14 industries with an average gross profit margin of more than 25% in the first quarter of this year, namely trade department, digital cloud, tourist restaurants, information services, home life, semiconductor industry, building materials manufacturing, biotechnology and medical care, food industry, green energy and environmental protection, other electronics, sports and leisure, other categories, computers and weekly equipment.
There are 8 industries with gross profit margins between 20 and 25% in the first quarter of this year, including motors and machinery, automobile industry, chemical industry, glass and ceramics, communications and network industry, aviation industry, papermaking industry, and rubber industry. As for 9 industries below 20%, they are respectively electrical cables, oil and electric gas, electronic components industry, cement industry, fabric fiber, electronic passage industry, steel industry, plastic industry, and optical industry.
CRIF analysis shows that although the gross profit margin is relatively small, the industry category with a gross profit margin of more than 25% is still affected, it still needs to face some profit reduction; for the industry category with an average gross profit margin of less than 20%, it is expected to withstand a greater impact.
From the perspective of comparative taxes of equal-related taxes, Taiwan's 20% of taxes of equal-related taxes are the same as Vietnam, but are higher than 15% of rivals in Japan and South Korea, and 19% of those in Thailand, Malaysia, Indonesia, the Philippines and Cambodia, and only 25% of those in India and Mexico. Therefore, Taiwan occupies a lower trend in the competition for export of similar products.
The most affected industry category. If the product cannot be converted to high gross profit products, we can only consider moving out to other low-tax countries for production. This is only a adjustment strategy for listed industries. For small and medium-sized enterprises with more limited resources, closing Taiwan factories and turning them to other regional factories is probably the only way to survive.
Taiwan's import market share in the United States was growing rapidly, but due to the impact of taxes related to other taxes, Japan and South Korea's import market share in the United States was expected to decline. In the first half of this year, Taiwan invested US$432 million in Malaysia and US$201 million in the Philippines, respectively, growing 165.03% and 286.54% respectively, and is expected to become a new contact for Taiwan's factory transfer.
Above all, 20% of the relative taxes are said to be in a variety of unfavorable situation for Taiwan's industries. In particular, the semiconductor industry still has to wait for the results of the US 232 survey to determine the relative tax rate of the semiconductor industry. This is only a shock to export industries and has not yet covered the impact on the reduction of US automobile and agricultural import taxes on Taiwan's local industries.
Extended reading: Is Taiwan's tax cut to 15% to pay a contemporary price? The Central Academy of Sciences has revealed the details of the five key points Taiwan Stock Exchange is waiting to hit the spot this year! Li Zhenyu: Taiwan tax 20% is well discussed Taiwan tax 20% impacts the three major industries! Legal person: Taiwan Stock Exchange is calm and 232 Terms of refusal
