Taiwan’s Northern District National Taxation Bureau has ruled that profits from land registered under another person’s name are treated as a transfer of creditor’s rights. Enterprises must pay corporate income tax, as such gains cannot be reported as tax-exempt “old system land” income.
Taiwan’s Northern District National Taxation Bureau of the Ministry of Finance has clarified that when a profit-seeking enterprise purchases land but registers it under another person’s name and later sells it, such a transaction constitutes a transfer of creditor’s rights.
Accordingly, the enterprise must pay corporate income tax in accordance with the law, and the gains cannot be reported as “tax-exempt income from the sale of land.”
Recent audits have revealed that some enterprises mistakenly believed that land purchased before 31 December 2015 (commonly referred to as “old system land”), regardless of whether it was registered under the enterprise’s name, could be sold tax-free under Article 4, Paragraph 1, Subparagraph 16 of the Income Tax Act. This misunderstanding has led to incorrect filings and subsequent tax assessments.
This announcement was made on 30 March 2026.
