萬國法律事務所

The Executive Yuan recently decided the content for amending the Income Tax Act to regulate the imposition of actual selling price taxation for house and land sale. In this amendment, it is proposed to adjust the threshold of tax exemption for self-use house (i.e., NTD 40,000,000, which is proposed by the Ministry of Finance) into the tax exemption amount of NTD 4,000,000 for the income obtained from the house and land sale of a self-use house. The income exceeding the amount of NTD 4,000,000 will be separately levied. In addition, the tax rate for selling a non-self-use house (within one year after the purchase) is increased to 45%.

If this amendment is passed in the Legislative Yuan, it is scheduled to be put into force from January 1, 2016. In this case, the new regulation will be applicable to the cases where the house is purchased after January 1, 2016 or the house which was purchased after January 2, 2014 and sold within two years.