1.The individuals who should file Individual House and Land Transactions Income Tax
From January 1st, 2016 an individual who has any income derived from transactions of house, the share of land associated with the house, or any land which can be issued a construction permit (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 in accordance with the Income Tax Act:
(1) The transferred house and land are acquired on or after January 2nd, 2014, and have been held for a period of no more than two years..
(2) The transferred house and land are acquired on or after January 1st, 2016.
(3) The transferred right of using a house by creation of superficies is acquired on or after January 1st, 2016.
2. The way to compute the house and land transactions income and taxable income
(1) The amount of house and land transactions income
- Acquisition at a price:
The amount of house and land transactions income = the transactions price - the original cost - all expenses necessary for acquisition, improvement, and ownership transfer of that house and land.
- Acquisition through inheritance or gift:
The amount of house and land transactions income = the transactions price - the current value of the house and the assessed present value of land at time of inheritance or gift (which shall be duly adjusted with the price index announced by the government) - all expenses necessary for acquisition, improvement, and ownership transfer of that house and land.
※ The land value increment tax paid in accordance with the Land Tax Act shall be excluded from the expense.
(2) Taxable Income
Taxable income = the amount of house and land transactions income - the amount of land value increment calculated in accordance with the Land Tax Act.
(1) Residents of the R.O.C.
|possession period : no more than 1 year||45%|
|possession period : more than 1 year but no more than 2 years||35%|
|possession period : more than 2 years but no more than 10 years||20%|
|possession period : more than 10 years||15%|
|Conforming to the tax preference for transaction of self-use house and land※||1. the amount of the exempt income: NT$4,000,000
2. the amount of the taxable income exceeds NT$4,000,000: 10%
※ The tax preference for transaction of self-use house and land: The house and land held by an individual, his/her spouse, or their minor children which comply with the following conditions:
- The individual, his/her spouse, or their minor children have resided, maintained their household registration at the self-used house, and have owned the house for 6 consecutive years.
- The house and land have never been used for lease, business operation, or professional practice in the last 6 years before its sale.
- The individual, his/her spouse, or their minor children have never applied for the preference in the previous 6 years.
(2) Non-Residents of the R.O.C.
|possession period : no more than 1||45%|
|possession period : more than 1 year||35%|
4. The filing procedure
An individual who has income or losses derived from transactions of house and land, regardless of the taxable amount, shall file every transaction separately, and not consolidate the income with the gross consolidated income. Taxpayers shall file house and land transactions income tax to the tax collection authority within 30 days from the day following the day on which the ownership transfer registration of house and land is completed, or the transactions day of the right to use a house by creation of superficies, attached with the payment receipt, a photocopy of the contract, and relevant documents.
(1) Failure to file within the time limit: A fine in the amount of more than NT$3,000 but not more than NT$30,000 shall be imposed. In the case of failure to file tax, and the amount of taxable income and tax payable are determined by the tax collection authority based on the available data, the taxpayer shall be subject to a fine of not more than three times the amount of tax determined as payable. However, the tax collection authority will choose the more severe one between the aforementioned fines as the final punishment.
(2) Filing on time but late payment: A delinquency charge in an amount equal to one percent of the amount of tax payable shall be charged for every two days of delay. When the period of delay exceeds thirty days, the case shall be referred to the Administrative Enforcement Agency for enforcement.
(3) Omission or misfiling: A fine of a maximum of twice the amount of the tax evaded.