Sellers Whose Transfer Registers After September 1 Still Pay the Full-Year Year 115 Land Value Tax

The Ministry of Finance's National Taxation Bureau said the Year 115 land value tax will begin to be levied on November 1, and the base date for tax liability is August 31 each year. The owner or holder of a dian right recorded in the register on that day is the taxpayer for this year.

The Ministry of Finance and the New Taipei City Government Taxation Bureau both remind that if the transfer registration is delayed until September 1 or later, even if the seller has long since handed the house over to the buyer, the seller in principle still bears the full-year land value tax for that year. In its "Land Value Tax Q&A Examples" on its website, the Ministry of Finance explains that the taxable period runs from January 1 to December 31 and is not calculated by the number of days or months of ownership.

Conversely, the New Taipei City Government Taxation Bureau gives the example that if the transfer registration is completed before August 31, the buyer must pay the tax for the whole year even if they hold the property for only a few months before year-end. The Ministry of Finance said that even if the buyer and seller agree in the contract on who pays the tax, the legal taxpayer does not change, and the tax bill is still issued to the owner registered on August 31.

Another easily overlooked point is the owner-occupied residence preference. The Ministry of Finance reminds that to qualify for the 2‰ rate, the land may not be rented out or used for business, and at least 1 of the owner, the owner's spouse, or a lineal relative must have their household registration at the location; if the entire household moves out, the land may instead be taxed at the general rates of 10‰ to 55‰. Once land that has been approved for the preferential rate no longer qualifies, this must be reported to the local tax authority within 30 days, and if the household registration is moved back later, a new application must be submitted.

If only siblings remain registered at the old family home, the preferential rate still cannot continue to apply, because siblings are collateral blood relatives and do not count as lineal relatives. The Ministry of Finance's National Taxation Bureau also said that people who fail to report after the cause or facts have ceased to exist, resulting in a lower tax amount, may be fined up to 3 times the amount of tax understated or concealed, in addition to paying the back taxes.