Taiwan’s Central Area National Taxation Bureau reminds for-profit firms to report real estate gains under separate calculation and consolidated reporting rules.
Taiwan’s Central Area National Taxation Bureau of the Ministry of Finance has reminded for-profit enterprises that, from 1 July 2021, sales of real estate purchased after 1 January 2016 are subject to the Integrated Housing and Land Tax 2.0.
This announcement was made on 24 December 2025.
The Central Area National Taxation Bureau of the Ministry of Finance stated that starting from 1 July 2021, when a for-profit enterprise sells houses and land located within the territory of the Republic of China, and such real estate was purchased after 1 January 2016, it is subject to the Integrated Housing and Land Tax 2.0. When filing the Profit-Seeking Enterprise Income Tax return for the year in which the ownership transfer of the real estate is registered, the enterprise must adopt the method of “Separate Calculation and Consolidated Reporting” for declaration.
The Bureau pointed out that according to Paragraphs 1 and 2 of Article 24-5 of the Income Tax Act, the gain or loss from real estate transactions is calculated as the balance after deducting related costs, expenses, or losses from the revenue. The balance remaining after further deducting the total land appreciation amount from this gain is not combined with the profit-seeking enterprise’s income amount. Instead, the tax payable is calculated separately according to the prescribed tax rate and reported and paid on a consolidated basis.
The Bureau further explained that the declaration method involves Separate Calculation and Consolidated Reporting. It requires filling out Page C1-1 of the Profit-Seeking Enterprise Income Tax Settlement Return, calculating the “Transaction Gain (Loss)” and “Deductible Total Land Appreciation Amount” for each transaction item-by-item to arrive at the “Balance After Deducting the Total Land Appreciation Amount”. This balance is then used to calculate the “Separately Calculated Tax Payable”. Subsequently, the “Transaction Gain (Loss)” from the separate calculation is entered into Column 134 on Page 1 of the return to deduct (or add back) the income subject to separate calculation, while the “Separately Calculated Tax Payable” is entered into Column 135 for consolidated reporting and payment.
The Bureau provided an illustrative case where it discovered Company A, which sold a house and land (recorded as inventory) in January 2023, purchased in April 2021. When filing its 2023 Profit-Seeking Enterprise Income Tax settlement return, Company A reported the sales revenue from this real estate as over TWD 27 million and calculated the tax using a 20% tax rate. The Bureau found that the purchase and sale timing of the real estate made it subject to Separate Calculation under the Integrated Housing and Land Tax 2.0. As the holding period was within two years, the applicable tax rate was 45%. Company A should have filled out Page C1-1 and Columns 134 and 135 on Page 1 of the return. After recalculation, an additional tax payment of TWD 2.79 million was assessed and levied.
The Bureau reminds for-profit enterprises that when selling real estate subject to Separate Calculation under the Integrated Housing and Land Tax 2.0, they must, when filing the Profit-Seeking Enterprise Income Tax return for the year of the real estate ownership transfer registration, complete Page C1-1 of the return as required and fulfill their tax obligation using the Separate Calculation and Consolidated Reporting method.
