(Taichung City reports) The Local Tax Bureau of Taichung City Government stated that the transfer of requisitioned land or land reserved for public service facilities designated by the competent authority in accordance with the Urban Planning Law may be exempted from land value increment tax if the transfer is made before the requisition. However, if the application specifies that the land reserved for public service facilities is acquired through “urban land readjustment”, the exemption of land value increment tax should be voided when declaring the present value of the land being transferred to the local tax collection agency.
The Bureau further explained that landowners of the land reserved for public service facilities acquired through “urban land readjustment” would still reserve the rights to participate in the allocation of land. Therefore, with respect to the land reserved for public service facilities, the level of impact on the landowners’ rights can vary between land “expropriated” by the government and land “acquired through urban land readjustment”. This is the reason that land reserved for public service facilities acquired through urban land readjustment is not exempted from land value increment tax if it hasn’t been expropriated by the government.
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