Taiwan’s tax authority has reminded businesses leasing owned real estate to use the correct industry code when filing corporate income tax, warning that misclassification could lead to tax reassessment and additional charges.
Taiwan’s Central District National Taxation Bureau, under the Ministry of Finance, had amended rules governing corporate income tax filings for businesses that lease their own real estate, in a move aimed at ensuring fairness between individual and corporate taxpayers on rental income and preventing entities from shifting tax liability by altering their reporting classification.
The Ministry of Finance issued Order Tai-Cai-Shui No. 11200686900 on 31 January 2024, amending Article 9 of the Guidelines for Expanded Documentary Review of Corporate Income Tax Returns (the “Expanded Review Guidelines”). Under the amendment, industry codes “6811-12 Leasing of Owned Real Estate” and “6811-13 Subleasing of Real Estate” have been excluded from the scope of the Expanded Review Guidelines, effective from the 2023 tax year.
The Bureau said the change was designed to address inconsistencies arising when taxpayers switched between individual and corporate reporting structures to gain more favourable tax treatment on rental income.
The Bureau stressed that businesses engaged in leasing owned real estate must declare corporate income tax using the correct industry code. Misreporting, it warned, could result in reassessment of tax liabilities and additional tax charges.
The order was issued by the Central District National Taxation Bureau, Ministry of Finance 14 August 2026.
