June 2026
Recent Amendments to the Amusement Tax Act (Taiwan)
In 1942, in response to fiscal pressures arising from the Second Sino-Japanese War and to promote a spirit of frugality, the National Government of the RoC enacted the Feast and Amusement Tax Act, under which the feast tax and amusement tax were established as sources of local tax revenue. The feast tax was primarily imposed on banquet and dining activities regarded as luxury consumption, while the amusement tax was levied on cinemas, theatrical performances, billiard halls, and other amusement activities. After the government assumed control of Taiwan in 1949, the relevant tax regime continued to be implemented and was amended on multiple occasions in response to national defense and tax administration needs.
However, as economic development progressed, consumption patterns changed, and tax collection costs continued to rise, the importance of the feast tax gradually declined. Ultimately, with the repeal of the Feast and Amusement Tax Act in 1980, the feast tax was abolished. The amusement tax, meanwhile, continued to be governed under the newly enacted Amusement Tax Act. Since then, the scope of the amusement tax has undergone a number of adjustments. In recent years, reforms have increasingly focused on reducing taxable items and lowering tax burdens, reflecting the evolution of Taiwan’s tax system from a wartime fiscal instrument into a regime more consistent with the needs of modern society and cultural development. [1]
After several decades of development, the amusement tax system was amended again on May 20, 2026. The amendments were introduced in consideration of tax system rationalization and local fiscal autonomy. Under the amendments, taxable items relating to cultural, artistic and sporting events, such as films, concerts and ball games, as well as competitive contests, were removed. Only dance halls, golf courses, and other items publicly announced by the Ministry of Finance remain subject to the tax. The amendments also authorize local governments to suspend the collection of amusement tax, lower the statutory maximum tax rates applicable to dance halls and other taxable items, and provide that other taxable items shall be publicly announced by the Ministry of Finance.
To implement the amendments, the Ministry of Finance announced on May 22 nine categories of “other taxable items,” including KTV establishments, MTV establishments, karaoke establishments, internet cafés, escape rooms, paintball shooting venues, racetracks, claw machine arcades, electronic gaming machine facilities, jet skis, and powered paragliding facilities or venues. However, karaoke facilities attached to restaurants or hotels were excluded from the announcement because they are ancillary facilities, are not necessarily used by patrons, and the primary purpose of such establishments is dining. Likewise, amusement park facilities and AR/VR immersive experience facilities, which are recreational or educational in nature and widely accessible to the public, were not included within the scope of the announcement. The Ministry of Finance further indicated that it will continue to review the relevant taxable items on an ongoing basis.
[1] Important Historical Records on the Feast Tax and Amusement Tax, The History of Ministry of Finance, R.O.C online, available at: https://museum.mof.gov.tw/singlehtml/e3edfcc7363a4c1797e90fc646ae5c09?cntId=8f4dceb08c4d4befbcce932a1e38c2d3 (last visited on June 6, 2026)
However, as economic development progressed, consumption patterns changed, and tax collection costs continued to rise, the importance of the feast tax gradually declined. Ultimately, with the repeal of the Feast and Amusement Tax Act in 1980, the feast tax was abolished. The amusement tax, meanwhile, continued to be governed under the newly enacted Amusement Tax Act. Since then, the scope of the amusement tax has undergone a number of adjustments. In recent years, reforms have increasingly focused on reducing taxable items and lowering tax burdens, reflecting the evolution of Taiwan’s tax system from a wartime fiscal instrument into a regime more consistent with the needs of modern society and cultural development. [1]
After several decades of development, the amusement tax system was amended again on May 20, 2026. The amendments were introduced in consideration of tax system rationalization and local fiscal autonomy. Under the amendments, taxable items relating to cultural, artistic and sporting events, such as films, concerts and ball games, as well as competitive contests, were removed. Only dance halls, golf courses, and other items publicly announced by the Ministry of Finance remain subject to the tax. The amendments also authorize local governments to suspend the collection of amusement tax, lower the statutory maximum tax rates applicable to dance halls and other taxable items, and provide that other taxable items shall be publicly announced by the Ministry of Finance.
To implement the amendments, the Ministry of Finance announced on May 22 nine categories of “other taxable items,” including KTV establishments, MTV establishments, karaoke establishments, internet cafés, escape rooms, paintball shooting venues, racetracks, claw machine arcades, electronic gaming machine facilities, jet skis, and powered paragliding facilities or venues. However, karaoke facilities attached to restaurants or hotels were excluded from the announcement because they are ancillary facilities, are not necessarily used by patrons, and the primary purpose of such establishments is dining. Likewise, amusement park facilities and AR/VR immersive experience facilities, which are recreational or educational in nature and widely accessible to the public, were not included within the scope of the announcement. The Ministry of Finance further indicated that it will continue to review the relevant taxable items on an ongoing basis.
[1] Important Historical Records on the Feast Tax and Amusement Tax, The History of Ministry of Finance, R.O.C online, available at: https://museum.mof.gov.tw/singlehtml/e3edfcc7363a4c1797e90fc646ae5c09?cntId=8f4dceb08c4d4befbcce932a1e38c2d3
