Taiwan's Ministry of Finance has reminded foreign taxpayers that income from qualifying house and land transactions must be reported through a separate tax return, with filings due within 30 days of the relevant transaction or ownership transfer.
Taiwan’s Ministry of Finance has issued a notice on 20 July 2026 reminding foreign taxpayers of their obligation to file a separate income tax return for qualifying house and land transactions, rather than including such income in gross consolidated income under the Income Tax Act.
The Beigang Office of the National Taxation Bureau of the Central Area said the requirement has applied since 1 January 2016, and covers income derived from transactions involving houses, land, house utilisation rights, presale houses, and certain share or capital transfers that satisfy the prescribed conditions.
Foreign taxpayers must file an individual house and land transactions income tax return if the transaction falls under any of the following circumstances:
- The transferred house, the associated share of land, or land on 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 that directly or indirectly holds more than half of the total shares or capital of an enterprise inside or outside the Republic of China (R.O.C.), where at least 50% of the value of those shares or capital is derived from house and land located within the R.O.C. This provision does not apply to shares traded on the Taiwan Stock Exchange, Taipei Exchange, or the Emerging Board.
The Ministry said taxable income from house and land transactions is calculated by subtracting the amount of land value increment calculated in accordance with the Land Tax Act from the amount of house and land transaction income.
For non-residents of the R.O.C., the applicable tax rate depends on the holding period. Income from property held for less than two years is subject to a 45% tax rate, while a 35% rate applies where the holding period exceeds two years.
Foreign taxpayers are required to file the 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 for the right to use a house by creation of superficies.
The Ministry also warned that failure to submit the required return may result in a fine ranging from more thanTWD 3,000 to TWD 30,000.
