(Taichung News) The Taichung City Government’s Local Tax Bureau noted that the new anti-hoarding policy 2.0 took effect on July 1, 2024. While the criteria for the preferential tax rate on owner-occupied houses are similar to those for the land value tax on self-use residential land—both needing household registration—there are still some differences that can be confusing! To help the public quickly grasp these distinctions and take advantage of tax-saving opportunities, the Local Tax Bureau has provided a comparison table highlighting the differences between the two.
The bureau explained that to qualify for the preferential tax rate on owner-occupied houses, the house must not be rented out or used for business. In addition, it must serve as the actual residence for the owner, their spouse, or direct relatives, with one of these relatives having their household registration at the property. If the owner, their spouse, and minor children own only one house countrywide and the property's current value is below a certain threshold, the tax rate can be lowered to 1%. However, if they own up to three houses countrywide, the tax rate applied is 1.2%.
As for the land value tax, to qualify for the self-use residential land tax rate, the following criteria must be met: (1) The house on the land must be owned by the owner, their spouse, or direct relatives. (2) The house must not be rented out or used for business. (3) The owner, their spouse, or direct relatives must have their household registration on the property. (4) Urban land must not exceed 300 square meters, and non-urban land must not exceed 700 square meters. (5) The owner, their spouse, and minor dependents are limited to owingowning one property. However, if their children or direct relatives who are of age have their household registration on the property, this one-property limit does not apply.
The Local Tax Bureau also noted that to apply for the preferential tax rate starting from the current period (year), qualified individuals must submit their applications at least 40 days before the house tax or land value tax collection dates (by March 22 for the house tax and by September 22 for the land value tax; if these dates fall on holidays, the deadline is extended to the next business day). Applications submitted after these deadlines will result in the preferential tax rate applying from the following period (year). For any tax inquiries, you can call the call the toll-free service number at 0800-000321 or 04-22585000 ext. 1 to reach the A++ Station, where dedicated personnel will be available to help.