The Acquisition Dates and Holding Periods of the House and Land Shall be Considered Separately, When Verifying if the New or Old Tax Regulations Shall be Adopted.
1. For houses and lands sold after January 1st, 2016: the old tax regulations will be applied with no income tax, if the land was acquired before December 31st, 2015 and was possessed by the owner for more than two years. However, if the house was acquired after January 1st, 2016, the new tax law will take place instead, and the transaction income tax rate of the house will be determined by the owner’s holding period of the land.
2. For lands acquired after January 1st, 2016: new tax regulations will be applied to the jointly-constructed house and land. The applicable house and land transactions income tax will be determined by the owner’s holding period of the land.
NTBT reminds that if an individual sells a jointly-constructed house with a profit-seeking enterprise and pays the transactions income tax in accordance with the above-mentioned new tax regulations, he/she shall fill out the application form within 30 days counted from the following day of the day the house and land ownership transfer registration is completed. Besides, they shall pay the tax (if any) before filing the individual house and land transactions income tax return to the competent tax authority of their registered residence with relevant documents.
(Contact: Ms. Li, Section Head of the Second Examination Division; Telephone: 2311-3711 ext.1550）