The National Taxation Bureau of the Southern Area, Ministry of Finance, stated that when taxpayers sell real estate property acquired through successive inheritances or bequests on or after January 1, 2016, the holding period used to determine the applicable tax rate and eligibility for the owner-occupied property tax benefits under the House and Land Transactions Income Tax Act may include the combined holding periods of all successive decedents or testators.

The Bureau explained that when property is acquired through inheritance or bequest, the timing of acquisition is beyond the heir’s or beneficiary’s control. If the heir or beneficiary needs to dispose of property within a short period — for instance, to support surviving family members or to pay estate tax — it would be unreasonable to apply a higher tax rate merely because of a short holding period. Therefore, the Ministry of Finance has revised the rules to allow the holding periods of all successive decedents or testators to be aggregated, thereby enabling taxpayers to qualify for a lower tax rate or the owner-occupied incentive (gains within NT$4 million are exempt from tax, and any excess amount is taxed at 10%). This amendment aims to strike a balance between fairness and compassion while safeguarding the rights and interest of heirs and beneficiaries.

The Bureau provided the following example: Taxpayer A’s mother purchased property X in 1996. After her death in 2018, the property was inherited by A’s father. Following the father’s death in March 2022, taxpayer A inherited the property and sold it in February 2024. Under the revised rule, A may combine the holding period of both parents when calculating the holding period for the house and land transactions income tax. As the combined holding period exceeds ten years, the applicable tax rate is 15%.

The Bureau would like to remind taxpayers that when an individual sells property acquired through inheritance or bequest and the transaction is subject to the house and land transactions income tax, a tax return must be filed, regardless of whether the sale results in a gain or a loss, within 30 days from the day following the completion of the ownership transfer registration. The return, along with a copy of the sales contract and other relevant documents, should be filed with the tax authority that has jurisdiction over the taxpayer’s household registration address.　

Press Release Contact: Ms. Juan
Individual Income, Estate And Gift Tax Division
TEL: 06-2223111 ext.8065