Look This Way, Landlords! Preference for Individual Income Tax Will Be Offered to Rental Income

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National Taxation Bureau of Kaohsiung, Ministry of Finance explained that, to encourage individual landlords to lease their property to recipients of government rent subsidy and to lease or manage their property through or by ''house rental service providers'' or ''rental housing service business'' accredited or approved by the competent authority, the following preference for individual income tax would be offered thereto:

1. The property is leased to recipients of government rent subsidy: Where the rental income received during the lease period is below NT$15,000 each month per property starting from June 2021 (NT$10,000 before May 2021) , the individual landlord thereof is exempted from income tax. The exceeding part shall be deemed as rental income upon deduction of necessary deterioration and expenses thereof. If the expenses are not listed and provided with evidence, the necessary deterioration and expenses should be 43% of the taxable rental income according to current regulations.
2. Social housing that is subleased through or managed by ''house rental service providers'':Rental income from spaces used to provide housing, long-term care services, services for the disabled, childcare and kindergarten during the lease period shall be exempted from income tax, if the amount thereof is below NT$15,000 each month per property starting from June 2021 (or NT$10,000 before May 2021). The exceeding part shall be deemed as rental income upon deduction of necessary deterioration and expenses thereof. If the expenses are not listed and provided with evidence, the necessary deterioration and expenses should be 60% of the taxable rental income.
3. Rental housing that is subleased through or managed by ''rental housing service business'':Where the contract covenants residential uses for more than one year, rental income received during the lease period is exempted from income tax if the amount thereof is NT$6,000 each month per property. The exceeding part shall be deemed as rental income upon deduction of necessary deterioration and expenses thereof. If the expenses are not listed and provided with evidence, the necessary deterioration and expenses should be 53% of the exceeding part between NT$6,000 and NT$20,000; 43％ of the exceeding part more than NT$20,000.

The Bureau further indicated that landlords who had their property subleased or managed by a third party should pay attention to the following matters and requisite documents when filing individual income tax returns:

1. Subleasing through a rental housing business: The landlord should file income tax returns according to the ''Withholding and Non-Withholding Tax Statement'' issued by ''house rental service providers'' or ''rental housing service business'' as prescribed. The category of income is 51R for house rental service providers or 51M for rental housing service business. When filing income tax returns online, the system will automatically calculate the exemption amount of rental income.
2. Management through a rental housing business: The landlord should file income tax returns according to the lease contract and attach the lease contract and delegated management contract. For those who file income tax returns online, please select code 74S, if the property is leased through ''house rental service providers'', or 74M, if the property is leased through ''rental housing service business''.The system will automatically calculate the exemption amount of rental income.

Contact: Miss Wu, Revenue officer of the Second Examination Division
TEL: 07-7256600ext7255

Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=fe40668e918844ebbcaed3f47a6e6ed4