Individuals selling land and housing received by gift on or after 1 January 2016 must calculate acquisition cost using the assessed current value of the house and the announced current value of the land at the time of the gift, adjusted by the consumer price index, and not the donor's original purchase price, the Taipei National Tax Administration has said.
Taiwan’s Taipei National Tax Administration, Ministry of Finance, announced today , 13 November 2026, that individuals who sell land and housing acquired by gift on or after 1 January 2016 fall within the scope of the land and housing transaction income tax under Article 4-4 of the Income Tax Act.
The administration said the acquisition cost of such property must be calculated under Article 14-4 of the Act. The calculation uses the assessed current value of the house and the announced current value of the land at the time of the gift, adjusted by the consumer price index published by the government.
Deductible costs
Where the property was acquired by gift, the deductible cost includes the CPI-adjusted value described above. With supporting documents, it also includes:
- necessary expenses paid before the property became ready for use, such as deed tax, land value increment tax, stamp tax, scrivener fees, registration fees, notarisation fees and agent fees; and
- expenses for additions, improvements or repairs paid during the period of use that increase the value or efficiency of the house and cannot be exhausted within two years, in line with Point 13 of the Guidelines for Declaring Income Tax on Land and Housing Transactions.
Reminder to taxpayers
The administration reminded taxpayers that, when an individual sells property acquired by gift (other than a gift from a spouse) on or after 1 January 2016, the acquisition cost is not the donor’s original purchase price. It must be calculated from the assessed current value of the house and the announced current value of the land at the time of the gift, adjusted by the government’s consumer price index.
Taxpayers should take care to follow the rules when filing to avoid additional tax assessments, the administration said.
