Taiwan's Central Area National Taxation Bureau has reminded businesses that disposals of shares or equity interests may be subject to the House and Land Integrated Income Tax if more than 50% of the invested enterprise's value is derived from Taiwan real property, while highlighting updated valuation guidance and exemptions for certain pre-2021 shareholdings.
Taiwan’s Central Area National Taxation Bureau of the Ministry of Finance stated that, under the House and Land Integrated Income Tax 2.0 regime, effective from 1 July 2021, a profit-seeking enterprise that disposes of shares or equity interests in a domestic or foreign profit-seeking enterprise in which it has held more than 50% ownership (directly or indirectly on any day during the one-year period preceding the transaction date) must determine whether the transaction falls within the House and Land Integrated Income Tax rules.
If more than 50% of the value of the invested enterprise’s shares or equity interests is derived from real property located in Taiwan, house use rights, pre-sale properties, and the land associated with those pre-sale properties (collectively referred to as “real property”), the transaction is treated as a real property transaction and is subject to the House and Land Integrated Income Tax. This rule applies to all such transactions except those involving shares of companies listed on the stock exchange, over-the-counter market, or Emerging Stock Market.
The Bureau further explained that the Ministry of Finance amended and reissued the “Guidelines for Filing House and Land Integrated Income Tax Returns” on 21 April 2026. The amendments provide that, where the invested enterprise can reasonably and objectively measure the value of all its assets (for example, based on certified audit reports prepared by a certified public accountant using actual market values), the total fair market value of those assets may be used to determine the value of the enterprise’s shares or equity interests. This allows the proportion of real property value within the invested enterprise’s equity value to more accurately reflect the actual situation.
In addition, for transactions involving shares acquired before 30 June 2021, the portion of the gain attributable to the invested enterprise’s ownership of real property acquired on or before 31 December 2015 (i.e. real property subject to the previous tax regime) is exempt from the House and Land Integrated Income Tax. This treatment applies to all cases that have not yet been finally assessed.
The Bureau reminded businesses that, when disposing of shares or equity interests, they should carefully assess whether the transaction falls within the scope of the House and Land Integrated Income Tax.
This announcement was made on 28 July 2026.
