2020/06/29 Individual house and land transaction income tax return for foreign taxpayers

Beigang Office, National Taxation Bureau of the Central Area, Ministry of Finance indicated that, from January 1st, 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 and land, the share of land associated with a 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 transaction income tax return:
(1) The transferred house and land are acquired on or after January 1st, 2016.
(2) The transferred right of using a house by creation of superficies is acquired on or after January 1st, 2016.

The formula for computing the amount of house and land transactions 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 periods are more than one year.  The tax rate is 45% if the holding periods are within one year; otherwise, the tax rate is 35%.

Taxpayers shall file house and land transaction income tax returns to their 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 transaction day of the right to use a house by creation of superficies.  If a foreign taxpayer fails to file a house and land transaction income tax return, the fine would be NT$3,000 to NT$30,000.

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