Taiwan's National Taxation Bureau has reiterated the filing requirements, tax rates and penalties applicable to foreign taxpayers with taxable income from certain house and land transactions under the Income Tax Act.
Taiwan’s National Taxation Bureau has clarified, on 20 July 2026, that foreign taxpayers that income derived from qualifying house and land transactions must be reported separately from gross consolidated income under the Income Tax Act.
The authority stated that, from 1 January 2016, income derived from house and land transactions must be filed separately and must not be consolidated with gross consolidated income.
Foreign taxpayers who derive income from transactions involving a house, land, the house utilisation right, a presale house, or shares or capital meeting specified conditions (collectively referred to as “house and land”) are required to file an individual house and land transactions income tax return if any of the following conditions are met:
- The transferred house, the share of land associated with the house, or land for which a construction permit may lawfully be issued was acquired on or after 1 January 2016.
- The transferred right of using a house by creation of superficies was acquired on or after 1 January 2016.
- The transferred right or the presale house together with its building location was acquired on or after 1 January 2016.
- The transaction involves shares or capital of an individual or profit-seeking enterprise directly or indirectly holding more than half of the total number of shares or the total amount of capital of an enterprise within or outside the R.O.C., where at least 50% of the value of those shares or capital is constituted by house and land within the territory of the R.O.C. This provision does not apply to transactions involving shares of companies listed on the Taiwan Stock Exchange, Taipei Exchange or the Emerging Board.
Tax calculation and rates
The authority said taxable income from house and land transactions is calculated using the following formula:
Taxable income = the amount of house and land transaction income – the amount of land value increment calculated in accordance with the Land Tax Act.
For non-residents of the R.O.C., the applicable tax rate depends on the holding period. A 45% tax rate applies where the holding period is less than two years, while a 35% tax rate applies where the holding period exceeds two years.
Filing deadline and penalties
Taxpayers must file a house and land transaction income tax return with the tax collection authority within 30 days from the day following the completion of the ownership transfer registration of the house and land, or from the transaction date of the right to use a house created by superficies.
A foreign taxpayer who fails to file the required house and land transaction income tax return may be subject to a fine of more than TWD 3,000 and up to TWD 30,000, the authority said.
