Rental Property and Tax Treatment
Tax Benefits for Agricultural Land
2021-11-01
The Taiwan tax laws require a deed tax filing and payment when obtaining the house ownership through a sale, lien, exchange, gift, division, or possession.
The types of deeds, tax rates and tax payers are as follows:
| Type | Tax Rate | Tax Payer/Reporter |
|---|---|---|
| Sale | 6% | Buyer |
| Lien | 4% | Lienholder |
| Exchange | 2% | Exchanger |
| Gift | 6% | Gift Receiver |
| Division | 2% | Divider |
| Possession | 6% | Possessor |
Computation formula for deed taxes:
Deed tax = (Deed price as approved) x (Tax rate)
The deed price is fixed based on the standard prices determined by the local real estate appraisal committee (which also determines the standard prices for a house’s current value based on which the house tax is fixed); provided in the case where the transfer price is lower than the standard price determined by the local real estate appraisal committee, the lower price shall apply in the case of a public real estate obtained through public auction held by the court or through public bidding offered by the government according to the laws.
Persons to submit tax filings and filing deadlines are as below:
The deed tax must be filed within the filing period by the taxpayer as the owner who obtains the house, unless such house has no title registration (due to failure to complete its first title registration) and in such a case, the deed tax filing must be done jointly by both parties resulting from a sale, exchange, gift, or division.
Also, the deed tax filing must be done within 30 days after the contract for the sale, lien exchange, gift, or division is made, or after ownership registration application is filed in the case of taking possession, with all the application forms, standardized contract, and all other documents required to be submitted, with, however, four exceptions as follows:
Tax Benefits for Agricultural Land
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Provided by Kingdoms Law