The National Taxation Bureau of Taipei, Ministry of Finance, states that taxpayers who are prohibited from the disposal of property due to overdue taxes may offer third-party property of equivalent collateral value to the outstanding tax payable. This property will serve as a guarantee when applying to have the disposal prohibition written off.

The Bureau explains that, pursuant to Subparagraph 1, Paragraph 1 of Article 24 of the Tax Collection Act, tax collection authorities may notify the land administrative agency to register a disposal prohibition on the taxpayer’s real property due to overdue taxes. However, under Subparagraph 1, Paragraph 2, Article 24 of the same Act, said taxpayer may provide third-party property equivalent in value to the outstanding taxes as a guarantee, to apply for removal of the disposal prohibition, the taxpayer shall submit the application, third party’s “Guarantee Agreement,” and “Commitment to Guarantee,” alongside a list of collateral and certification documents, to the tax collection authorities.

The Bureau offers an example: Since Party A failed to make payment on the gift tax of 2023, the Bureau legally imposed a disposal prohibition on Party A’s lands. However, Party A claimed that the land had already been contracted for sale and failure to complete the transfer would result in substantial penalties. After consulting with the Bureau, Party A provided a third party’s listed company stocks equivalent to the tax payable as a guarantee and completed the pledge process, when applying to have the registered disposal prohibition on the land removed. As a result, Party A successfully transferred the land, obtained the sale proceeds, settled the outstanding taxes, and reclaimed the collateral.

The Bureau reminds taxpayers who have been subjected to a disposal prohibition due to the failure to pay taxes that, if they need to transfer a property or use it as collateral for a loan, they have the option to provide third-party property equivalent to the outstanding tax payable as a guarantee. This step will enable them to apply for the removal of the registration of disposal prohibition and safeguard their rights and interests.

(Contact Person: Ms. Chen, Head of Collection and Information Management Division; Tel: +886-2-2311-3711 ext. 2160)