Local Tax Bureau of Taichung City Government said that a land owner who sells land within two years from the previous transaction or activity shall be levied of “Specifically Selected Goods and Services Tax” (i.e. luxury tax). Thus, he/she must be cautious; otherwise, he/she may overpay taxes.
Local Tax Bureau explained further that to enjoy the Owner-occupied Residential Land Tax Rate for his/her Land Value Increment Tax, a land owner may have his/her spouse give him/her the land as a gift first and is thus qualified for exemption from the Land Value Increment Tax. Nevertheless, if he/she sells the land within two years from the change of ownership, he/she is subject to the levy of luxury tax. The Specifically Selected Goods and Services Tax Act states that if you and your spouse and minor children own more than one piece of property and the husband and wife give out the real estate to each other as a gift, the gift receiver must hold the property for more than two years before it is sold again; otherwise, the Specifically Selected Goods and Services Tax should be levied.
Before any real-estate transaction, the Local Tax Bureau reminded people to pay more attention to the relevant tax laws so as to protect their own interests. If you want to learn more about related information, please call 0800-086969 (toll free) or 22585000 ext. 1 for the call center of Local Tax Bureau.