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To Apply for Exemption of Land Value Increment Tax Or Not

If a husband or a wife gives land to his/her spouse as a gift, he/she may apply for exemption of land value increment tax, according to the tax law. However, when the land is transferred to a third person, its land value increment tax should be calculated based on the premium between the land price prior to gift giving and the current land value, said the Local Tax Bureau of Taichung City Government.

Local Tax Bureau explained further that the land value increment tax is levied with a progressive tax rate in multiples of the original decreed land value. If a couple gives out land as a gift and chooses not to pay the land value increment tax at the transfer of title this time, the difference between the land value prior to gift-giving act and that of the next transaction to a third person is usually larger and a higher tax rate will apply. Thus, the Local Tax Bureau reminds people to assess whether to sell the land in the short term and how much the land price may rise before they decide to apply for exemption (postponement in fact) of land value increment tax.

If you have any tax-related questions, please call toll-free service hotline 0800-086969 for the call center of Local Tax Bureau.
  • Data update: 2018-11-19
  • Publish Date: 2014-02-25
  • Source: Local Tax Bureau
  • Hit Count: 246