Beigang Office, National Taxation Bureau of the Central Area, Ministry of Finance indicated that, from January 1, 2016, income derived from house and land transactions should be filed separately, and not be consolidated with the gross consolidated income in accordance with the Income Tax Act. 

Foreign taxpayers who have any income derived from transactions of house, land, the house utilization right, presale house, and shares or capital that meet certain conditions (hereinafter referred to as the “house and land”) which comply with any one of the following conditions, shall file an individual house and land transactions income tax return:

(1) The transferred house, the share of land associated with the house, or any land for which a construction permit may lawfully be issued is acquired on or after January 1, 2016.

(2) The transferred right of using a house by creation of superficies is acquired on or after January 1, 2016.

(3) The transferred right or the presale house with its building location is acquired on or after January 1, 2016.

(4) The transactions of the shares or capital for any individual or profit-seeking enterprise directly or indirectly holding more than half of the total number of shares or the total amount of capital of an enterprise within or outside the R.O.C., where at least 50% of the value of such shares or capital are constituted by house and land within the territory of the R.O.C.; however, such case shall not apply if the transactions of the shares are those of companies on the Taiwan Stock Exchange, Taipei Exchange, or the Emerging Board.

The formula of computing the amount of house and land transaction taxable income:
Taxable income = the amount of house and land transaction income – the amount of land value increment calculated in accordance with the Land Tax Act.

For non-residents of the R.O.C., the tax rate on the income of house and land transactions depends on whether the holding period exceeds 2 years. The tax rate is 45% if the holding period is less than 2 years; otherwise, tax rate is 35%.

Taxpayers shall file house and land transaction income tax return to the tax collection authority within 30 days from the following day of the day on which the ownership transfer registration of house and land is completed, or the transaction day of the right to use a house by creation of superficies. If a foreign taxpayer fails to file house and land transaction income tax return, a fine in the amount of more than NT$3,000 but not more than NT$30,000 shall be imposed.

If you have any questions, please call the toll-free service number 0800-000321 for consultation, and we will do our best to serve you.

Contact person: Beigang Office, Services Section, Ms. Shen
Tel: (05)7820249 ext.202.