A taxpayer who doesn't receive any payment from properties lent to others for business or for carrying out professional services should declare rental income on such properties regardless.
The National Taxation Bureau of the Northern Area (NTBNA), the Ministry of Finance indicated that for taxpayers who don’t receive any payment from properties lent to others for business or for carrying out professional services, the revenue from leasing will be upwardly adjusted by the collection authority according to the local prevailing rental standard if the contracted rental of the lent properties was undeclared or was obviously too low in comparison with the local prevailing standards for filing an annual Income Tax Return.
The Bureau further indicated that, according to Subparagraph 4,Category 5, Paragraph 1, Article 14 of the Income Tax Act: “Income tax on revenue from lease calculated in accordance with the local prevailing rental standard shall be paid for properties lent to others for use, unless it can be verified that no payment is made and the properties involved are not being used for carrying out professional services.” In accordance with Paragraph 2, Article 16 of the Enforcement Rules of the Income Tax Act：”Other persons stated in Subparagraph 4, Category 5, Paragraph 1, Article 14 of the Act refer to any individual or juristic person other than the taxpayer, his/her spouse, and his/her lineal relatives.”
For more information on relevant aspects of this issue, you are welcome to visit the website of the National Taxation Bureau of Northern Area at http://www.ntbna.gov.tw or call our toll-free telephone service at 0800-000-321. It is our pleasure to serve you.