The National Taxation Bureau of the Northern Area (NTBNA), M.O.F, stated that Integrated House and Land Transactions Income Taxation Regulations has come into force on January 1, 2016. Any profit-seeking enterprises selling land which is acquired after January 1, 2016, or is acquired after January 1, 2014 and has been held for no more than 2 years, the income derived from above-mentioned transactions shall be added to profit-seeking enterprise taxable income.
The Bureau gives the following example to illustrate the regulations: Company A and Landlord B signed a contract in which B gives A the land in exchange for houses built by A in June 2015, and they made the registration of transfer in land and houses ownership in September 2016. Afterwards, A sold the houses and the land in July 2020. Since the date of acquisition of the houses and the land is in September 2016, income derived from the transaction of the land shall be added to profit-seeking enterprise taxable income of Company A in accordance with the new regulations for Integrated House and Land Income Tax.
The Bureau would like to remind the public that, on the basis of the new Integrated House and Land Income Taxation Regulations, the determination of the "date of transaction" and "date of acquisition" depends on the date of registration of transfer in ownership in principle. Furthermore, to avoid filing errors, companies selling land after January 1, 2016 should be aware of whether the new regulations apply to such transaction and affect their rights and interests. If you have any questions, please visit the website of NTBNA (https://www.ntbna.gov.tw) to inquire the relevant laws or call the toll-free service number 0800-000321 for detailed consulting services.