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Legislative Yuan amends House Tax Act

Nominees in the Best Mandarin Female Singer category (clockwise from top left): Penny Tai, Faith Yang, Jia Jia, Denise Ho and Tanya Chua.

Nominees in the Best Mandarin Female Singer category (clockwise from top left): Penny Tai, Faith Yang, Jia Jia, Denise Ho and Tanya Chua.

The Legislative Yuan approved amendments to certain provisions of the House Tax Act on the third reading Tuesday. The lowest tax rate on non-owner occupied properties will be raised 0.3 percentage points from 1.2% to 1.5%.


Current Housing Tax Act regulations stipulate that the housing tax is imposed according to the current value of the property and divided between “residential” and “non-residential.” “Residential” properties are divided into owner occupied and non-owner occupied. The tax rate for owner occupied properties is 1.2%. The minimum tax rate for non-owner occupied property is 1.2% to a maximum of 2%.

The housing tax is a local tax and local governments normally do not distinguish between owner occupied and non-owner occupied and uniformly impose the lowest 1.2% rate.

Ministry of Finance officials stated that this is one of the factors leading to hoarded properties. Raising the tax on non-owner occupied properties raises the chances of empty properties and hoarded properties being put on the market.

After amendment, the tax rate of owner occupied or charity rental properties has been maintained at 1.2%. The minimum tax rate of other residential properties (non-owner occupied) has been raised from 1.2% to 1.5% and the maximum rate raised from 2% to 3.6%. The tax rate differential shall be set by local governments according to the number of properties held by owners.



Updated : 2021-01-20 19:21 GMT+08:00