Taiwan’s Central District National Taxation Bureau said rental income from housing used as social housing may qualify for a business tax exemption if the property meets the requirements of the Housing Act.
Taiwan’s Central District National Taxation Bureau of the Ministry of Finance said rental income earned by business operators from leasing housing for social housing purposes may be exempt from business tax if the property meets the requirements of the Housing Act.
The exemption applies when a property owner leases housing to a competent authority or private entity to establish social housing under Article 19, Paragraph 1, Subparagraphs 5 and 6, and Paragraph 2, Subparagraph 4 of the Housing Act. During the social housing operation period, the property must be used for residential, long-term care, disability services, childcare or kindergarten purposes.
Where these conditions are met, the rental income is exempt from business tax under Article 22, Paragraph 3 of the Housing Act.
Exemption requirements
The bureau stressed that the exemption does not apply to all rental housing. The property must be established as social housing under the Housing Act and used for legally prescribed purposes during the operation period.
Public-interest landlords may still be required to register for tax purposes and pay business tax if they maintain a fixed business location, hold a business licence or employ staff to manage rental matters.
The bureau also clarified that leasing housing to tenants who qualify for rental subsidies does not constitute social housing under the Housing Act. Rental income from such arrangements therefore does not qualify for the exemption.
Voluntary tax correction
The bureau advised landlords engaged in rental activities to verify whether they meet the exemption requirements.
Those who determine that they do not qualify may voluntarily file supplementary declarations and pay the relevant tax and interest before being reported or investigated by the tax authority or designated investigators of the Ministry of Finance. Penalties may be waived in such cases.
This announcement was issued by the Central District National Taxation Bureau of the Ministry of Finance on 14 August 2026.
