National Taxation Bureau of Kaohsiung, Ministry of Finance stated that, in order to encourage individual landlords to rent out their housing and protect the rights of tenants, the government provides the following individual income tax relief through principal tenant or management service of "housing rental service business" or "rental residential service business," with an implementation period of 5 years:
A. Principal tenant or management service of "housing rental service business"：
For the use as a residence, long-term care service, physical and mental disability service, childcare service, and kindergarten, the rent revenue obtained during the lease period of less than NT$ 10,000 (hereinafter the same) per month per housing can be exempt from individual income tax; for the portion exceeding NT$10,000, the balance after deducting the necessary losses and expenses of this portion is the income from lease; if the proof of the itemized expenses is not submitted, the necessary depreciation and expenses are 60% of the taxable rent revenue.
B. Principal tenant or management service of “rental residential service business"：
For a contract of residential use for a term of longer than one year, if the rent revenue obtained during the lease period is less than NT$6,000 per month per housing, it is exempt from individual income tax. For the portion between NT$6,000 to NT$20,000, the balance after deducting necessary depreciation and expenses for this portion is the income from lease; if the proof of the itemized expenses is not submitted, the necessary depreciation and expenses are 53% of the taxable rent revenue. For the portion exceeding NT$20,000, the balance after deducting necessary depreciation and expenses for this portion is the income from lease; if the proof of the itemized expenses is not submitted, the necessary losses and expenses are 43% of the taxable rent revenue in 2019.
The Bureau further explained that when the landlord chooses the principal tenant or management service the documents to be submitted when filing individual income tax return are as follows:
A. Choosing the “principal tenant service” method: Landlords should file based on the income from lease withholding and non-withholding tax statement issued by the operators of the "housing rental service business" or "rental residential service business" in accordance with regulations. The category of income for the income from lease via the “housing rental service business” is 51R and via “rental residential service business” is 51M.
B. Choosing the “management service” method: Landlords should file with the lease contract and the entrusted management contract attached. The category of income for the income from lease via the “housing rental service business” is 74S and via “rental residential service business” is 74M.
The Bureau reminded that both landlords and tenants can online inquire the qualified "housing rental service business" and "rental residential service business” operators. The inquiry method is as follows:
A. Housing rental service business: Please go to the Real Property Information Platform of the Ministry of the Interior.
B. Rental residential service business: Please go to the Ministry of the Interior's rental residential service business information system for inquiry.
Contact: Miss Lee, the Revenue Officer of the Second Examination Division
TEL: 07-7256600 ext.7255