Q1: Who is the legally liable taxpayer for the house tax?

1. The house tax is levied on the house-owner; for houses with land use rights, the tax is levied on the holder of such rights; in cases of house set with Dien right, the tax is levied on the Dien-holder. For jointly owned houses, the tax is levied on the joint owners, with one owner presumed to pay; if no presumption is made, the current resident or user shall pay on behalf of the owners. If the address of the house-owner, holder of land use rights, or Dien-holder is unknown or not residing at the house, the tax shall be paid by the manager or current resident. If rented out, the lessee is responsible for payment, deductible from rent.

2. For houses that have never had ownership registered and the owner is unknown, the house tax is levied on the person listed as the constructor on the license of permit; if no license of permit exists, it is levied on the person listed on the construction license; if no construction license exists, it is levied on the current resident or manager.

3. If the house is trust property, the trustee shall be the taxpayer of the house tax during the existence of the trust relationship. If there are two or more trustees, the provisions of Paragraph 1 regarding jointly owned houses shall apply.

Q2: When is the annual house tax due for payment, and what is the corresponding tax period?

The house tax is levied once a year, with the date of the end of February each year as the base date for tax liability. The tax amount is determined by the local competent tax authority based on the house tax registration information and is levied once every year from May 1 to May 31. The tax period is from July 1 of the previous year to June 30 of the current year.

Q3: What requirements must be met for houses used for self-residence to qualify for the 1.2% or 1% tax rate?

According to Paragraph 1 of Article 2 of the Standards for the Recognition of Owner-Occupied Houses and of the Status of an Individual to Lease out Premises for Public-Welfare Purposes, a house used for residential purposes by the individual owner or a right-of-use house with superficies registered on the land thereof and used for residential purposes by the individual right-of-use holder is self-residence if the following conditions are satisfied:

(1) The house is not leased out or used for business;

(2) The house owner or right-of-use holder, his/her spouse, or one of their lineal relatives resides in the house and has set their residence in the house on their household registration;

(3) The total number of houses owned by a person, his/her spouse, or their minor children shall not exceed three.

However, if a person, his/her spouse, and minor children only own one house in the country for their own residence and the current value of the house is not over a certain amount, the rate is 1%.

Q4:Can a foreigner who has obtained an R.O.C. (Taiwan) Resident Certificate be deemed to have household registration at that residence address, thereby qualifying for the self-residential house tax rate?

The amendment of the House Tax Act was promulgated on January 3, 2024, and went into force on July 1, 2024. The House Tax Act has been amended to require that a self-residential house must have household registration at the premises. However, for foreigners, nationals without household registration in the Taiwan Area, residents of the Mainland Area, and residents of Hong Kong or Macau who have obtained an R.O.C. (Taiwan) Resident Certificate, if the house at their registered residence address is owned by themselves, his/her spouse, or a lineal relative, they shall be deemed to have household registration at said house for house tax purposes.

Q5: If there is a change in the use of a house, what are the rules to declare the change for house tax rate adjustment under the House Tax Act?

Under Article 7 of the House Tax Act, when there is a change in the use of the house (for example, from business purpose to self-residence), the taxpayer should report the change to the local competent tax authority 40 days before the commencement of the next collection period (i.e., by March 22). In instances where the tax amount is reduced due to a change in the use of the house, the new tax rate will be applicable from the current collection period; if the report is late, it will be applicable from the next collection period after the report; if the tax amount is increased, it will be applicable from the next period following the change.