Foreign Taxpayers Shall File House and Land Transactions Income Tax Returns by Statutory Deadlines, Regardless of Taxable Income or Loss
The National Taxation Bureau of Taipei, Ministry of Finance states that any individual, whether a Taiwanese or foreign national, who has income or loss derived from transactions of house and land (hereinafter referred to as “property”) acquired on or after January 1, 2016 shall file an individual house and land transactions income tax return in accordance with the Income Tax Act within 30 days from the following day of the day on which the house and land ownership transfer registration is completed.
The Bureau explains that the house and land transactions income tax operates under a self-assessment system. Foreign taxpayers engaged in property transactions under Article 4-4 of the Income Tax Act shall file tax returns within the aforementioned deadline, regardless of tax liability. They must submit photocopies of contracts and any relevant documents to the National Taxation Bureau having jurisdiction over the address listed on their Alien Resident Certificate at the time of filing. Those who fail to file tax returns within the statutory deadline shall be subject to penalties under Article 108-2 of the Income Tax Act.
The Bureau provides the following example: Foreign non-resident Person A acquired a property for a total cost of NT$20 million in February 2020 and sold the property for NT$24 million in March 2024, with the transfer registration completed on May 3, 2024. However, Person A did not file the house and land transaction income tax return within the required 30-day period from the following day of transfer registration, missing the June 2 deadline of that year. After the Bureau’s determination of a tax deficiency, the additional tax due NT$1.12 million has been assessed, (transaction price NT$24 million - deductible costs and transfer expenses NT$20.3 million - total land value increment NT$0.5 million) × tax rate 35%. Moreover, Person A was subjected to a fine of NT$560,000 for this failure to comply with regulations.
The Bureau would like to remind foreign nationals who transfer properties subject to house and land transactions income tax to file returns within 30 days from the following day of: the completion of property ownership transfer registration; the house utilization right transaction date; or the presale house transaction date, regardless of whether there is any tax payable. In cases where a tax return has not been filed, it is advisable to file a supplementary return promptly before being identified by the tax authority. If there is a tax obligation, please include the appropriate interest and make a voluntary supplementary payment to avoid incurring any penalties.
(Contact Person: Ms. Yang, Head of the Foreign Taxpayer Service Section, Individual Income, Estate, and Gift Tax Division; Tel: 2311-3711 ext. 1650)
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=1a0274c8b809433a9fc1b48252439ad3