The Local Tax Bureau, Taichung City Government indicated that the arcade of building would be exempted from House Tax, given that its purpose is for public access in accordance with regulations. However, if any change made it not for public access purposes, the House tax should be levied according to its actual usage. For example, where an iron gate installed at the arcade in front of home with access closed for residential purpose by the owner, the House Tax should be levied on it at the self-use residential tax rate (1.2%). Where the arcade is rent by a business entity for business operation or a stall is set up for the owner’s business operation, the House Tax should be levied on it at the tax rate for business purposes (3%).
The Bureau further explained that the requirement for whether the arcade of building is exempted from House Tax is whether it is available for public use at any time. Where a stall is set up for business operation during the day or night only, even if the arcade has public access purpose during non-operating time, it still does not meet the requirement for tax exemption.
In addition, if objects are disorderly accumulated or recreational facilities are placed in the arcade to hinder access, it will not be exempted from House Tax
The bureau reminded especially the taxpayers that if there is any change in the purpose of use for the house, the Registration of Alternation should be applied to the tax collection authority where the house is located within 30 days from the date of alternation. Where the change of building purpose is made before the 15th day of the month the alternation is applied, it will be levied at the tax rate after the change from that month. Where the change of building purpose is made after the 16th day of the month the alternation is applied, it will be levied at the tax rate after the change from the next month. Taxpayers who fail to declare exceeding the time limit that results in tax evasion shall be subject to a fine that is no more than double the amount of tax payable in addition to being liable to pay the tax owed.
Local Tax Bureau, Taichung City Government cares about you. For any questions, please visit the website of the Bureau (http://www.tax.taichung.gov.tw) or call the toll-free telephone numbers for services: 0800-086969 or (04) 22585000 press 1 to connect the call center, and a dedicated person will serve you.