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The Sale of Real Estate Will Be Subject to Different Time and Reasons, and Different Taxation Methods Apply. Careful Evaluation should Carry Out to Protect Your Rights and Interests.

Mr. Wang from Kaohsiung called to inquiry: in 1991, he bought the house located on the land owned by the municipal government. Now that the municipal government has opened purchasing housing base, so some people want to buy the house from him. He is wondering whether to sell directly or give the house to his son first and then sold by son. He wants to know the difference between individual income tax on the two ways for selling the house.

According to the National Taxation Bureau of Kaohsiung,Ministry of Finance because the house acquisition date of Mr. Wang is before the implementation of the new Individual House and Land Transactions Income Tax (hereinafter referred to as the new taxation system) on January 1, 2016. Therefore, if Mr. Wang sells a house in his name, his house transaction income is not within the scope of the new system levy and should be incorporated into the annual individual income tax settlement report for the sale of property transactions. If Mr. Wang first donates the house to his son, then the son sells it, because the acquisition date of the son is after January 1, 2016. Therefore, it is within the scope of the new system of levy. The acquisition cost is the adjusted value of the current value of the house assessment according to the consumer price index. Since the current value of the house assessment is mostly lower than the original purchase cost, the calculated taxable income will be higher.

The bureau reminded that the sale of houses will be subject to different tax methods due to different acquisition time, and the cost will also be different due to different acquisition reasons. The public should carefully evaluate the transfer method to protect their rights and interests. If it is within the scope of the new tax system, the application should make within the statutory declaration period. For easy declaration, you can use the "Individual House and Land Transaction Income Tax E-filing system (Website: https://www.tax.nat.gov.tw)" to process online declarations to calculate the correct tax payable. If you have any questions, please contact the branch bureau and the office where the household registration located or call the free service hotline 0800-000-321.    



Contact: Mrs. Chang, the Revenue Officer of the Second Examination Division
TEL: 07-7256600 ext. 7253

Issued:National Taxation Bureau of Kaohsiung Release date:2020-06-10 Last updated:2020-06-10 Click times:147