A. About Amusement Tax
The feast and Amusement Tax Law was first promulgated in April 1942
with a view to financing local governments and to improving social custom.
The feast tax, however, proved too difficult to administer. Audit manpower
in the competent authorities was insufficient to prevent tax evasion
by consumers and restaurants for their mutual benefit. Further, few
advanced countries have levied a feast tax. Thus, to improve the tax
system and to lessen the difficulties in tax administration, the government
abolished the feast and Amusement Tax Law in June 1980, canceling the
feast tax as such and integrating it into the business tax; the Amusement
Tax Law was enacted at the same time as the legal basis for the assessment
of the amusement tax.
B. Tax Scope
The amusement tax shall be levied on the prices of tickets sold or
the fees collected by amusement businesses who provide any kind of on
site equipment or activities for entertainment. In case no tickets are
sold but drinks or entertainment devices are supplied to the consumers,
the tax shall be levied on the amount of the charges. The scope of the
tax is as follows: The cinema.
Professional singing, story-telling, dancing, circus, magic, acrobatics
shows and all kinds of performances in night clubs.
Drama, music performances and amateur singing, dancing, etc.
All kinds of skill competitions and contests.
Dance halls.
Billiard halls, bowling alleys, golf clubs and the like that are provided
as a form of recreation for consumers.
C. Taxpayers
Taxpayers of the amusement tax are those who pay the prices to enjoy
the amusement. Providers or sponsors of sites, equipment or activities
for entertainment act as collection agents. Taking the cinema as an
example, those who watch movies are the taxpayers, while theaters who
collect the tax-included tickets and pay the tax to the treasury are
collection agents.
D. Tax Rates
The Amusement Tax Law specifies maximum legal rates, and the collection
rates shall, within the maximum rates, be prescribed by the provincial
and the city governments, respectively, approves by the local assembly
of the same level, and reported to the Ministry of Finance for its record.
The maximum legal rates are as follows:
The maximum legal rates are as follows
| Classification Legal |
Tax Rates |
The Cinema
Chinese-language films
Foreign-language films |
0.5%
1% |
| Professional singing, story-telling, dancing, circus, magic, acrobatics shows, and all kinds of performances in night clubs |
10% |
| Drama, music performances and amateur singing, dancing, etc. |
1% |
| All kinds of skill competitions and contests |
2.5% |
| Dance halls |
25% |
| Golf clubs |
5% |
| Other activities that are provided as a form of recreation for consumers |
10% |
| Karaok television movie television |
6% |
| Pleasure boat |
2.5% |
