(Taichung News) Recently, many have called to inquire about collateral impacts and what precautions they should take in light of the proposed increase in the house tax rate to 4.8% under the hoarding tax policy 2.0.
The Local Tax Bureau, Taichung City Government noted that the amendment to the House Tax Act, known as the hoarding tax policy 2.0, has been approved by the Legislative Yuan after passing the third reading. It will come into effect on July 1, 2024, with official taxation beginning in May 2025. To ease the burden on homeowners who live in their house, individuals across the country who own only one property for their own residential purposes, with the property's current value falling below a certain threshold, will see their tax rate reduced from 1.2% to 1.0%. Those owning up to three self-occupied residential properties will maintain the 1.2% rate. However, under the new law, self-occupied residential properties must be registered under the owner, spouse, or direct relatives to qualify for the mentioned tax breaks.
As a reminder to taxpayers, the bureau noted that the recent amendment to the House Tax Act will consider household registration as a condition for self-occupied residential properties. For self-occupied residential properties that have yet to complete household registration, it is necessary to complete the registration process by March 22, 2025. Failure to do so will result in the property being taxed as a non-self-occupied residential property.
The Local Tax Bureau added that starting July 1, 2024, the statutory tax rates for non-self-occupied residential properties will be adjusted to a range of 2% to 4.8% (originally 1.5% to 3.6%). These rates will vary based on the number of properties owned nationwide by the houseowner and will be subject to progressive tax payment. Furthermore, to encourage the rental of vacant properties and accommodate cases of inherited properties that are not jointly owned voluntarily, properties rented out at standard rental rates or jointly inherited properties will be taxed at a statutory rate ranging from 1.5% to 2.4%. Additionally, for residential properties owned by builders and intended for sale, the statutory tax rate will be set at 2% to 3.6% within 2 years of construction completion and commencement of taxation.
Taxpayers can apply online either through the bureau's website (https://www.tax.taichung.gov.tw) or via the Local Tax Online Application Platform (https://net.tax.nat.gov.tw). If they have any further questions, feel free to call the bureau's toll-free service hotline at 0800-000321 or 22585000 ext. 1 to connect to the A++ Station, where dedicated personnel will be available to help.