Taichung Local Tax Bureau stated that the original purpose of pedestrian arcades was for public passage. Thus, according to related regulations, the area of land was exemption from the House Tax. However, if all or part of the pedestrian arcade is being occupied for business and is only available for public passage at non-business Hours, it should still be taxed.
The bureau indicated that, in recent years, many shops such as hardware stores, eateries, motorcycle shops, watering holes and others have expanded their business areas into to the pedestrian arcades, making them impassable for pedestrians, thus not fitting the tax-exemption regulation. However, general taxpayers perceive of pedestrian arcades as tax-exemption areas. In reality, judging whether the pedestrian arcade is tax-exemption or not depends on whether it is available for public usage. If the pedestrian arcade is not available for public passage, it should be levied the House Tax with a household or non-household tax rate according to its usage.
The bureau further explained that any pedestrian arcade that violates “availability for public passage”, regardless of being completely occupied or only occupied in the day and available at night, should be included in taxable areas. If it is used as residential, then the area should be taxed according to the household tax rate. If it used for business, then it should be taxed with the business tax rate accordingly. The aforementioned explanations are provided to remind taxpayers. If you have any tax related questions, please feel free to use the free service telephone line of the Taichung Local Tax Bureau 0800-086969 or dial 04-22585000 EXT 1 for the customer service center.