The Transaction and Acquisition Dates for the House and Land Transactions Income Tax Based on the Transfer Registration Dates
According to the House and Land Transactions Income Tax, in the case of a house and land being fully registrated at a price by an individual or a profit-seeking enterprise, the transaction and acquisition dates are based on the transfer registration date listed on the land or building registration, not the date the sales contract is signed.
The National Taxation Bureau of the Southern Area, Ministry of Finance stated that, an individual and a profit-seeking enterprise who transacts a house, a house with an associated share of land, or any land eligible for a construction permit acquired on or after January 1, 2016, shall be subject to assessment of income tax in accordance with the House and Land Transactions Income Tax. The determination of the transaction and acquisition dates for the aforementioned house and land, except for specific circumstances (e.g., ownership transferred through compulsory execution or acquisition through auction) stipulated in Article 3 and the proviso of Article 4 of the “Directives for the Declaration of the House and Land Transactions Income Tax”, shall be based on the date of transfer registration.
For example, Company A signed a land transaction contract with Mr. B for NT$13 million in November 2015. However, the land’s ownership transfer registration was not completed until February 1, 2016. The land was subsequently sold for NT$20 million and duly registered in September 2021. The income amount of NT$6.5 million was derived from the aforementioned transaction price of NT$20 million after deducting related costs and expenses. When filing income tax returns, Company A mistakenly identified the acquisition date of the land as the contract signing date in November 2015, believing that the income did not fall within the taxable scope of the House and Land Transactions Income Tax. As a result, Company A declared the income as exempt income, excluding it from taxable income. Consequently, Company A failed to calculate the tax payable by applying the tax rate specified in Article 24-5 of the Income Tax Act, and subsequently made a supplementary tax payment and was penalized when the error was discovered by the tax authority.
The Bureau would like to remind taxpayers that, to avoid the imposition of additional taxes and penalties, those who sell houses and land should be aware of the determination of the transaction and acquisition dates in order to correctly apply the relevant regulations of the House and Land Transactions Income Tax.
Press Release Contact: Ms. Yang
Legal Affairs Division
TEL: 06-2298132
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=37c5e144e1864a068c8ef22d4e7383e6