中華民國102年5月19日星期日 May 19, 2013 Sun.
Press Releases Statements
To Exempt from Specifically Selected Goods and Services Tax when Selling Newly Purchased Second Premises, the Prerequisite Should Be “Relocation”
The Taipei National Tax Administration (TNTA), Ministry of Finance said that when a taxpayer who holds two residential premises, and has an intention to apply for exemption from Specifically Selected Goods and Services Tax when selling the new of the said two premises, the taxpayer should claim that the reason for acquiring the new is “relocation”, and such selling is due to involuntary separation from employment or other involuntary causes.
The TNTA explained that the government should give consideration to the housing needs of the general public. As such, according to Article 5, subparagraph 2 of the Specifically Selected Goods and Services Tax Act, if the property owner, his or her spouse, and their minor lineal relative(s) who have only one unit of a building and the land associated with the unit, have completed household registration, and the building unit and land is neither for business use nor for lease during the holding period. The owner or the owner's spouse under the preceding condition, thereafter, purchases another unit of a building and the land associated with the unit, thus holds a total of two such units of buildings and land, sells the originally acquired building unit and land by reason of relocation, within one year after the date on which transfer registration for the newly acquired building unit and land is completed, or sells the newly acquired building unit and land because of a job transfer, involuntary separation from employment, or any other involuntary causes, such good will not be regulated by the Act, and it should be exempted from taxation under the circumstance mentioned above. In other words, for those owners who are applicable to the second segment of the clause should claim that the original intention for buying new premises is for “relocation”, but selling the new premises is because of the involuntary separation from employment or other involuntary causes.
The TNTA indicated that a case was received in respect of inquiring the application of such tax exemption. The applicant had bought a new building and associated land for his parents, but considering that his parents would have to live alone in bad health condition, and he also had some financial need; therefore, he planed to sell the newly acquired building and land, and would like to apply for tax exemption under the circumstance of involuntary cause. However, it is clear that the new premises was not purchased for the purpose of “relocation”, which did not meet the second segment of Article 5, subparagraph 2 as mentioned before, and if his holding of the ownership of the new premises is less than two years, he still has to pay the tax according to the relevant provision.
The TNTA stressed that people who have two units of buildings and land, and they have to sell the new building unit and land within two years under the circumstance of involuntary separation from employment or other involuntary causes, except the conditions of tax exemption announced by the Ministry of Finance, they should apply for determination by the local National Tax Administration which has the jurisdiction over the owner’s domicile.
The TNTA also reminded that taxpayers should report and pay the Specifically Selected Goods and Services Tax in accordance with regulations, For those who fail to pay the tax and are under inspection conducting by the tax authority, in addition to the tax due, they will be subject to a penalty of not more than three times the amount of the tax due, which is more a loss than gain.
分 網： Taxation