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Preferential Rate on Levy of Land Value Increment Tax Not Applicable for Land Transfer as Gift

Local Tax Bureau of Taichung City Government has recently got a phone call asking that if a land owner gives a land lot together with a building as a gift to his or her children, can the preferential rate for self-use residential land be applied to the levy of the land value increment tax?

Local Tax Bureau said that according to Article 34 of the Land Tax Act, for self-use residential land “SOLD” by a title owner, the land value increment tax shall be 10% of the total incremental value of the land for urban land up to 3 acres and for non-urban land up to 7 acres. Therefore, to qualify for preferential rate for self-use residential land being applied to the levy of land value increment tax, three criteria must be met: (1) The land must be "sold";(2) The landowner or his / her spouse and / or relatives of direct lineage have their household registration on the self-use residential land; and (3) Such land is not rented or used for business purposes. If the land is transferred as a gift, the preferential tax rate is not applicable, even though the other two criteria are met.

Local Tax Bureau reminds people to pay attention to the way of how the land is transferred to protect their own interests. For more information, please call toll-free service hotline 0800-086969 or 22585000 ext. 1 for the call center of Local Tax Bureau.
  • Data update: 2018-11-19
  • Publish Date: 2015-10-19
  • Source: Local Tax Bureau
  • Hit Count: 224